States to offload 82,000 tonnes of confiscated pulses into markets

Move expected to cool retail prices before Diwali

After seizing around 82,000 tonnes of pulses from hoarders in nationwide raids conducted over the past few days, the Centre has impressed upon the state governments to offload these into the markets in the next one week. This could lead to lowering of prices in the retail markets ahead of Diwali.

Officials say tur and urad dal prices have already started softening in the retail markets. This could recede further after the seized pulses are sold in the retail markets. The stocks were seized in about 8,000 raids conducted across 12 states over the past few days.

On Tuesday, retail prices of tur dal slipped below Rs 210 a kg and were quoted around Rs 190, while wholesale price of the commodity declined to Rs 181 a kg, according to the data maintained by the consumer affairs ministry.

Urad prices dropped by up to Rs 8 a kg in both retail and wholesale markets across the country. Retail price of urad was Rs 190 a kg, while it was Rs 180 in the wholesale market. In Puducherry, retail prices have dropped by Rs 35 a kg since October 19. In Ahmedabad, these have softened by Rs 20 a kg during the same period, according to an official statement.

Due to the seizure of pulses in 12 states, prices have started showing a downward trend, said a senior consumer affairs ministry official.

The highest quantity of pulses - 57,455 tonnes - was confiscated from Maharashtra, following which tur dal prices in Mumbai wholesale markets fell to Rs 152 a kg from Rs 200 a week ago, the official added. In Rajasthan and Karnataka, too, wholesale prices are showing a declining sign.

According to ministry data, 4,932 tonnes of pulses have been seized in Chhattisgarh, 2,370 tonnes in Madhya Pradesh, 3,330 tonnes in Rajasthan and 2,189 tonnes in Haryana.

The statement further said: “More states have started selling pulses through government/cooperative outlets. Prices in the wholesale market have also registered declining trends.”

As the pulses crisis escalated, the Centre stepped up the countrywide crackdown on hoarders and black-marketers to boost domestic supply and control prices. It has taken several other steps to improve domestic supply of pulses.

Meanwhile, four state governments, including Gujarat, have started selling tur dal at a lower price of Rs 120-145 a kg at retail points to provide relief to common man.

Andhra Pradesh and Telangana are also distributing one kg of tur dal at a highly subsidised rate of Rs 50 through ration shops, while Tamil Nadu is selling urad and Canadian lentils at Rs 30 a kg to all consumers.

Pulses prices have risen across the country due to shortfall in domestic output by two million tonnes in 2014-15. There is also global a shortage of lentils.

The Centre continues to keep a close watch on the price situation of pulses. Minister of state for finance Jayant Sinha said on Tuesday the long-term indicators suggested inflation was coming down substantially.

“We keep a very close eye on inflation. We have all been concerned about food prices, especially dal prices. We monitor those (prices) very closely,” Sinha said at an investment summit.

“We have also to look at the long-term expectations of inflation, including what is happening at the structural level and not just in terms of price spikes that happen at seasonal level,” he added.