Price of pulses might fall in two weeks

On October 16 the Centre announced inclusion of importers, exporters, processors and large retailers under the purview of its stock limit order

 

The prices of pulses are expected to decline by 10 to 15 per cent in the next two weeks, with a number of import consignments expected to hit Indian ports for distribution.

In the month till October 16, prices of various pulses had risen by about 50 per cent. On that day, the Centre announced inclusion of importers, exporters, processors and large retailers under the purview of its stock limit order. Data compiled by Agmarknet showed the price of tur (pigeon pea) in Mumbai was Rs 170 a kg on October 16, up from Rs 120 a kg a month before, but is now Rs 160 a kg.

Prices had doubled in three months on expectation of low production after deficient monsoon and reports of crop damage in major producing states.

“Private importers have contracted 2.5 million tonnes to arrive between October 15 and January 31. Of these, 250,000 tonnes have arrived at the Mumbai port in the past five to seven days,” said Pravin Dongre, chairman, India Pulses and Grains Association (Ipga).

The association has offered 100 tonnes a day of tur to the government at a discounted Rs 135 a kg until its price cools down, conditional on the government withdrawing stock limits on importers. Sources in the state government said such a relaxation is unlikely.

Following the stock limit levy of 150–200 tonnes, state governments have started raids on stockists, large retail chains, importers, and processors. Importers have urged the government to exempt them.

“We are concerned about the spiralling prices over recent months. However, there are reports of excellent harvests in Australia, Canada and other exporting countries, and stocks will start arriving at Indian ports in the next couple of weeks,” said Bimal Kothari, vice-chairman, Ipga.

Importers in Maharashtra say they will divert consignments to states where stock limits have not been imposed, such as West Bengal or Tamil Nadu.

Deepak Kapoor, secretary, Food Civil Supplies and Consumer Protection Department, Government of Maharashtra, on Tuesday categorically denied any exemption in stock limits. “We are only invoking a law in existence for several years," Kapoor said.

"Those who do not break the law need not fear. Our actions will continue on those who do."