Govt to pay agencies Rs 113.40 cr for losses on pulses import

This will enable PSUs like NAFED, STC, MMTC to be financially sound to intensify trading to cool down prices of essential commodities

The government on Wednesday approved a reimbursement of Rs 113.40 crore to state-owned MMTC, PEC, STC and cooperative Nafed for incurring losses on the import of pulses between 2006 and 2011.

The government also said the previously-approved import of 5,000 tonnes, each of tur and urad dal, should be reaching the country by Saturday.

This decision was made at a Cabinet meeting chaired by Prime Minister Narendra Modi.

“The Cabinet has approved the proposal of the ministry of food and consumer affairs to reimburse Rs 113.40 crore of losses on pulses imported between 2006 and 2011 by Nafed, PEC, STC and MMTC, apart from losses incurred in the sale of pulses up to six months after closure of the scheme,” a statement said.

This will enable public sector undertakings (PSUs) to be financially sound, helping intensify trading activities to cool down prices of essential commodities, it said.

The Centre had introduced two schemes to bridge the demand-supply gap in pulses during 2006-11. It had asked the four agencies to import and sell in the open market with subject to the reimbursement of 15 per cent of the losses. The other scheme was to distribute imported pulses via ration shops to poor people at a fixed subsidy of Rs 10 per kg.

Under a new central scheme, Price Stabilisation Fund (PSF), the government has started importing pulses after two years, to boost domestic supply and check retail prices that crossed Rs 150 per kg.

In a statement the government said: “In order to ensure retail distribution to consumers, the decision to import 5,000 tonnes of tur dal and 5,000 tonnes of urad dal by MMTC, was made. The first consignment of imported Dal would be reaching Mumbai by Saturday.”

The government said it 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, and export of all pulses is banned except Kabuli Chana, organic pulses and lintels to the tune of 10,000 tonnes, with zero duty on import of pulses, it added.

Prices of pulses have been increasing unabated for the past few weeks.

India imports about four million tonnes of pulses, largely through private trade.