MMTC, STC gains after Cabinet approves reimbursement

MMTC and State Trading Corporation rose by 1.89% to 6.07% at 14:07 IST on BSE after the Union Cabinet approved the proposal to reimburse certain state-run companies for incurring losses on pulses imported between 2006-2011.

State Trading Corporation of India (STC) was up 1.89% to Rs 161.80.

MMTC was up 6.07% to Rs 42.80.

The S&P BSE Sensex was down 145.06 points, or 0.56% at 25,551.38.

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved the proposal of the Ministry of Consumer Affairs, Food & Public Distribution, to reimburse Rs 113.40 crore of losses on pulses imported between 2006-2011 by the National Agricultural Cooperative Marketing Federation (NAFED), Project and Equipment Corporation (PEC), State Trading Corporation (STC) and Metals and Minerals Trading Corporation (MMTC), apart from losses incurred in the sale of pulses upto six months after closure of the scheme. This will enable the Central public sector units (PSUs) to intensify trading activities to cool down prices, the Union Cabinet said in a statement.

In order to ensure retail distribution to the consumers, MMTC will import 5000 tonnes of Tur Dal and 5000 tonnes of Urad Dal. The first consignment of imported Dal would be reaching Mumbai by 5 September 2015, the statement added.

The Union Government has taken several measures to increase availability and control the price of essential commodities, especially pulses and onions. States have been empowered to impose stock limits on pulses, export of all pulses is banned except Kabuli Chana, organic pulses and Lintels to the tune of 10,000 MTs. Besides there is zero duty on import of pulses, the statetement said.

The Cabinet issued the statement during trading hours today, 2 September 2015.

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