Centre Imposes Stock Limits on Tur and Chana to Curb Hoarding and Speculation
GG News Bureau
New Delhi, 22nd June. In a decisive move to combat hoarding and unscrupulous speculation, the Government of India has imposed stock limits on pulses, specifically tur and chana, including kabuli chana. This measure aims to improve affordability for consumers. The order, effective immediately, was issued under the Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024.
Stock Limits Detailed
The stock limits, valid until September 30, 2024, are applicable across all States and Union Territories. The specified limits for each pulse are as follows:
- Wholesalers: 200 MT
- Retailers: 5 MT
- Big Chain Retailers: 5 MT at each retail outlet and 200 MT at depot
- Millers: Last 3 months of production or 25% of annual installed capacity, whichever is higher
Additionally, importers are directed not to hold imported stock beyond 45 days from the date of Customs clearance. All legal entities must declare their stock positions on the Department of Consumer Affairs portal (https://fcainfoweb.nic.in/psp
Background and Enforcement
The imposition of stock limits is part of a broader strategy to regulate the prices of essential commodities. The Department of Consumer Affairs has been closely monitoring pulse stocks through a stock disclosure portal. In April 2024, the department communicated with state governments to enforce mandatory stock disclosures by all stockholding entities. This was followed by inspections in major pulse-producing states and trading hubs across the country from late April to May 10, 2024. Meetings with traders, stockists, dealers, importers, millers, and big chain retailers were held to promote truthful stock disclosure and maintain pulse affordability for consumers.
Impact on Domestic and International Markets
To augment domestic production, the government reduced the import duty on desi chana by 66% effective May 4, 2024. This duty reduction has encouraged imports and increased sowing of chana in major producing countries. Notably, chana production in Australia is expected to rise from 500,000 tons in 2023-24 to 1.1 million tons in 2024-25, with availability from October 2024.
Future Outlook
The sowing of Kharif pulses like tur and urad is anticipated to increase significantly due to high price realization by farmers and the prediction of above-normal monsoon rains by the IMD. Additionally, the import of the current year’s tur crop from East African countries is expected to begin arriving in August 2024. These factors are projected to help reduce prices of Kharif pulses like tur and urad in the coming months. The new chana crop from Australia, available from October 2024, will further ensure consumer access to affordable chana.
The government’s proactive measures, combined with favorable climatic conditions and increased international imports, are expected to stabilize pulse prices and enhance their availability, benefiting consumers across the country.
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