India Imposes Stock Limits On Toor, Chana to Cool Prices

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The government on June 21 imposed stock limits on tur and chana dals till September this year to check hoardings and control prices. Stock limits applicable to each of the pulse individually will be 200 tonnes for wholesalers; 5 tonnes for retailers; 5 tonnes at each retail outlet and 200 tonnes at the depot for big chain retailers; last 3 months of production or 25 per cent of annual installed capacity, whichever is higher, for the millers.

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The government said that the imposition of stock limits on tur and chana is a part of a slew of measures taken by it to crack down on prices of essential commodities. The impact of yellow pea imports must be reflected in chana prices and tur prices to some extent but that has not been the case. The market and the price trend indicate supply tightness of chana, resulting in lower procurement by Nafed and higher purchase by private agencies. Either there is a problem with production, or people in the trade are manipulating the market.

Presentation- Dibyabharati Nayak

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