Govt imposes stock limits on pulses till October

Source: Economic Times, The Hindu

What is the news?

Centre has imposed stock limits on all pulses except moong held by wholesalers, retailers, importers, and millers till October. The stock limit of 200 tonnes, for any one variety of pulses, has been imposed on wholesalers.

• An order in this regard has been issued by the Union Food and Consumer Affairs Ministry.

Relevant details

• The Department of Consumer Affairs issued the Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021. It prescribes the limits imposed on the stock of a commodity with immediate effect.
  • The order has been issued in exercise of the powers conferred by section 3 of the Essential Commodities Act, 1955
• If the stocks of entities exceed the prescribed limits, it has to be declared on the online portal of the Department of Consumer Affairs. Further, the stock has to be brought within the prescribed limit within 30 days of the notification of the order.

Rationale

There was a sustained increase in the price (inflation) of pulses in March-April. The need for an urgent policy decision was felt to send the right signal to the market. Therefore, this decision will prevent hoarding and check price rise.