Government Takes Measures To Crackdown On Prices Of Commodities

In a consistent effort to crackdown on prices of essential commodities like pulses, Government of India has issued a landmark order where it has imposed stock limits on pulses applicable to wholesales, retailers, millers and importers. The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 has been issued with immediate effect from July 2, 2021.

Under this order, stock limits have been prescribed for all pulses except Moong until 31st October 2021 for all States/UTs. Stock limit will be 200 MT (provided there should not be more than 100 MT of one variety) for wholesalers, 5 MT for retailers and it will be the last 3 months of production or 25% of annual installed capacity, whichever is higher, for the millers.

Lastly, for importers, the stock limit will be the same as that of wholesaler for stocks held/imported prior to 15th May 2021 and for stocks imported after 15th May 2021, stock limit applicable on wholesalers will apply after 45 days from date of customs clearance. It has also been stated that if the stocks of entities exceed the prescribed limits, they have to be declared on the online portal of Department of Consumer Affairs and have to be brought within the prescribed limit within 30 days of the notification of the order.

"As a result of a series of consistent actions taken by the Government of India, a declining trend in the prices of pulses and edible oils is being witnessed. Additionally, in the past 6 years, the highest ever total production of major pulses amounting to 255.8 LMT took place in 2020-21 with Gram (126.1 LMT) and Moong Dal (26.4 LMT) particularly breaking all of their past records of production," a government release stated.