Why traders are upset over govt response to rising pulse,edible oil prices

The slash in import duties on crude palm oil has been negated by price rise in global markets, stock holding limits on pulses are self-defeating, say industry players

Edible oil and pulses prices have been on the boil the past few months, both in the retail markets and wholesale markets.

Though prices have softened since June after being considerably higher in the March-May period, the Centre says that rates are still higher than last year. (see chart)

This has prompted it to announce a slew of measures that included a sharp reduction in import duties on crude palm oil, the largest component of India’s annual edible oil imports, lifting all restrictions on import of refined edible oils but most importantly it announced the imposition of strict stock-holding limits