Centre's finger on pulses cartel

Seeks help of probe agencies

As pulses sowing in the ongoing rabi season shows signs of faltering, the ministry of consumer affairs is planning to tighten the noose around those it suspects would artificially raise prices.

It has sought the help of Delhi Police's economic offences wing, the Competition Commission of India, the Enforcement Directorate and the Central Bureau of Investigation to keep an eye on importers and hoarders indulging in cartelisation.

Pulses production in 2014-15 (July to June) dropped to 17.2 million tonnes (mt) from 19.3 mt the previous year. Output is not expected to rise much in 2015-16, fuelling speculation of another spike in retail prices.

India's annual consumption is 22-23 mt and the difference is met through import, which fluctuates between three to five mt annually.

The Centre cleared a proposal a few months earlier to import around 10,000 tonnes over the next few months.

Prices in the retail markets had crossed Rs 200 per kilo in October due to fall in domestic output by two mt to 17.2 mt in the 2014-15 crop year.

Although the Centre is planning a crackdown on hoarders and importers by using the Essential Commodities Act, a discussion paper floated by NITI Aayog had warned injudicious use of the Act could make private investments in agriculture marketing and storage infrastructure unattractive.