The decision to introduce stock limits on wheat and pulses is contrary to India's plan to move towards a common agricultural market, said P H Ravikumar, managing director and chief executive officer of National Commodity and Derivatives Exchange (NCDEX). | |
| "There were (government) statements that by 2010 India would be a common agricultural market. But, state governments are imposing stock limits. This is a completely opposite strategy," Ravikumar opined. |
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| Worried by an upturn in prices of essential commodities, the central government restored powers of state governments to set stock limits and restrict movement of these commodities to check prices. |
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| Thereafter, Maharashtra notified stock limits on wheat and pulses on September 12, while many states, like Delhi, Gujarat, and Andhra Pradesh, have expressed intentions to do so. |
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| Ravikumar said imposing stock limits could be counter-productive, as stocks of the commodities would not enter states that have imposed these limits. |
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| For example, in a state like Maharashtra, no wheat will come in because of these limits. Wheat will remain in Madhya Pradesh and Gujarat, he said. |
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| "States of Punjab and Haryana have not imposed stock limits on foodgrains and pulses, as they have realised that such a move could be counter-productive," said the NCDEX chief. |
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