Wholesale tur prices fall 33% in 3 weeks

Importers urge govt to release seized stocks, seek 1 mt buffer stock for lean season; traders say they have been warned by Maharashtra govt not to sell tur over Rs 100

The price of tur (pigeon pea) declined by 33 per cent in the three weeks since the government directed states to impose stock limits on pulses and conduct raids and seize additional stocks.

The price of the premium variety tur from Myanmar fell to Rs 100 a kg in the wholesale market here on Thursday, a decline of Rs 50 a kg from October 16. Prices of other varieties of pulses also declined by up to 30 per cent after stock-holding limits were imposed on importers and local stockists.

The sharp fall in prices of pulses has brought relief to the government, which was worried rising prices could have added to food inflation.

“Prices declined due to government actions and arrival of imported pulses. Prices will continue to decline for a while before rising after the rabi harvest,” said Bimal Kothari, vice-chairman of the India Pulses and Grains Association (Ipga) and managing director of Pancham International, a city-based pulses importer.

On October 18, the government imposed stock limits on pulses. Immediately after issuing the notification, raids were conducted on importers and other stockists and the government seized 85,000 tonnes of pulses. Following a meeting of importers with finance minister Arun Jaitley over a week ago, stock limits for importers was lifted by Maharashtra.

Importers also met Maharashtra Food and Civil Supplies Minister Girish Bapat and requested him to release the seized pulses. According to a member of the delegation, the minister said the state government would look into the request.

“While Maharashtra lifted stock limits for importers, it is yet to release stocks of pulses seized in recent raids. We imported pulses conforming to government policies. Most of the quantity seized is of imported pulses,” said Kothari.

Traders in Vashi here purchased stocks when prices started firming up last month. They are now forced to sell at a loss as Bapat has, according to the trade, warned traders not to sell tur over Rs 100 a kg.

“Traders are forced to sell tur at Rs 100 a kg. This will have a negative impact in the coming season as no trader will build stocks for sales in the lean season,” said Himat Chandra, partner, Trimurthi International, a stockist based in Vashi.

Anticipating a deficit and the possibility of a price rise, the Ipga has urged the government to build buffer stocks of at least one million tonnes for sale in April-May 2016.

“India’s pulses output is going to decline this season. The government can intervene in the market in the lean season when the price starts firming up,” said Kothari.