Stock limits on pulses: IPGA demands immediate withdrawal of order

The India Pulses and Grains Association (IPGA) on Saturday expressed shock over the government imposing stock limits on pulses till October, in a bid to prevent hoarding and check price rise.

Topics

pulses output | Foodgrains

The India Pulses and Grains Association (IPGA) on Saturday expressed shock over the government imposing stock limits on pulses till October, in a bid to prevent hoarding and check price rise.

The industry is “utterly shocked. The IPGA will make a representation to the government and address the issue”, it said.

“We urge the government to immediately withdraw the order as it is not in the interest of anybody,” IPGA Vice Chairman Bimal Kothari said in a statement.

The government on July 2 issued a notification imposing stock holding limits on all pulses except moong on wholesalers, retailers, millers and importers.

Kothari said the IPGA has always welcomed and supported government’s efforts to boost the trade and double farmer’s income including revision of the import policy from restricted to free in case of tur, urad and moong.

“But this order of imposing stock limits on pulses has taken the pulses industry by complete surprise. It’s quite a regressive step by the government,” he said.

This will severely impact not only the wholesalers, retailers and importers but also the farmers and consumers, he added.

Kothari further said India annually needs 25 million tonnes of pulses. But this year, “we are expecting a shortage.”

Normally, an importer imports 3,000 to 5,000 tonnes of one variety but imposing a limit to just 100 tonnes per variety will lead to controlling supplies, he said, adding that such restrictions will cause more harm than good to the farmers and consumers.

“These limits are going to throttle supplies as the importers will not be in a position to import large quantities together,” he said.

Since the festival season is approaching from next month, the supply may become a major constraint due to this restraining order, he added.

Kothari said farmers are going to be adversely impacted as it is going to be peak season for them with festivals around the corner and planting time for kharif crops.

“Prices are going to crash. Chana is already selling below minimum support price (MSP). Tur and Urad are selling at MSP,” he said.

On the one hand, the government wants the farmers to get MSP and double the farmer’s income but this kind of policy will hurt everybody and is certainly not beneficial to anyone, he added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor