Govt moves to check pulse prices & hoarding; to release 10,000 tonne from buffer stocks

With pulses prices rising in the last few weeks, the government on Thursday asked the agencies to release at least 10,000 tonne of pulses in the open market from their buffer stocks.

The agencies such as Food Corporation of India (FCI), Small Farmers Agri-Business Consortium (SFAC) and NAFED had purchased more than 50,000 tonne of pulses (tur or arhar and urad) from the farmers during kharif marketing season (2015-16) for creating a buffer stock. Besides, the government-owned trading agencies have contracted to import 25,000 tonne of pulses for creating buffer stocks. Sources told FE the modalities of releasing pulses in the market would be worked out shortly.

As per the department of consumer affairs data, the retail prices of tur and urad have seen a significant rise in Delhi in comparison to February prices, while in the rest of the country, the pulses prices have seen a marginal increase. The tur retail prices in Delhi have risen to R159 a kg this week which was R 147 per kg two months ago. Similarly, the retail prices of urad have seen an increase to R 177 per kg in Delhi from R147 per kg two months ago.

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During recently concluded kharif season (2015-16), the pulses were procured by three agencies — FCI, SFAC and Nafed in Maharashtra, Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, Rajasthan and Telangana.

Meanwhile, an official said the government is keeping a close watch on the prices and availability of pulses and it is being monitored regularly at the Cabinet secretariat level. The Centre has already requested the states to project their demands for pulses so that timely release from buffer stock can be ensured. The Centre has also asked to impose stock limits on pulses to ensure ability and check hoarding. “They have been asked to strictly enforce the stock limits and take stringent action against hoarding,” an official said.

Last year, the government had decided to create a buffer stock of around one lakh tonne of pulses. The decision to create a buffer stock was taken when the retail prices of arhar in Delhi were ruling high at R 200 per kg, while urad was being sold at R190 per kg in October 2015.