Who: Stock limits on pulses
Where: Across the country
What: Extended by the Union Government
When: 18 October 2015
Why: To ease price pressures
The Union Ministry of Consumer Affairs, Food and Public Distribution on 18 October 2015 extended stock limits on pulses to four categories of stocks that were exempted under the order issued in September 2015.
The four categories of stocks are-pulses sourced from imports, stocks held by exporters, stocks to be used as raw-materials by licensed food processors and stocks of Large Departmental Retailers.
The extension of stock limits is aimed at easing supply side pressures on pulses by checking hoarding activities.
In September 2015, a Central Order was issued under the Essential Commodities Act, 1955 imposing stock limits on pulses, edible oils and edible oil seeds for one year up to 30 September 2016.
The order was in addition to the following measures undertaken by the government to cool down pulse prices in the open market.
• Export of pulses was banned.
• Zero import duty on pulses was extended.
• Around 5000 tonnes of pulses were imported from Price Stabilization Fund.
• The minimum support price (MSP) has been increased to 4625 rupees per quintal for Urad and Arhar dal and to 4850 rupees per quintal for Moong dal.
• A buffer stock was created by procurement and imports of pulses.
• States are directed to take strict action against hoarders and black marketers.
• It was decided to bring transportation, handling and milling charges of imported pulses under the Price Stabilization Fund.
• States were encouraged to lift stocks of imported pulses.
• Distribution of pulses through retail outlets-Kendriya Bhandar and Safal-at subsidized prices.