Centre Decision to Impose Stock Limits of Pulses Shocks IPGA; Urges Government to Withdraw It

The Indian Pulses and Grains Association (IPGA) is shocked at the Center’s decision to impose limits on stock of pulses. This apex trade body has urged the Central Government to withdraw this order immediately.  

The order was declared on July 2. The government will not impose limits on stock of pulses for millers, wholesalers, retailers, and importers till October 31.  

Statement of Bimal Kothari, Vice Chairman of IPGA: 

“IPGA has always welcomed and supported government’s efforts to boost the trade and double farmers’ income including revision of import policy from “restricted” to “free” in case of turn, 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 and will severely impact not only the wholesalers, retailers, and importers, but also the farmers and consumers.” 

How will this stock-limit order affect farmers? 

According to Kothari, festivals are around the corner. This is the peak season for pulse farmers and is the time of kharif crops.  

However, Kothari is of the view that prices will crash. At present, chana or chickpea is selling below MSP, while tur or pigeon pea and urad are selling at MSP. The Center has an ambition of doubling farmers’ income; yet it has come up with this order that will adversely affect everybody. This policy, as per Kothari’s statement, is not beneficial to anybody.  

Kothari said, “India needs 25 million tonnes of pulses every year. This year, we are expecting shortage. Normally, an importer imports 3000 to 5000 tonnes of one variety but imposing limit to just 100 tonnes per variety will lead to controlling supplies. 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.” 

A blow to the upcoming festive season?  

According to IPGA, this order will lead to a constraint in supply of pulses and the festive season is approaching, so this may create a negative impact.  

This time, the Center will have to review its decision and repeal the order. Ending with Kothari’s statement, “IPGA, on behalf of the industry is utterly shocked. We will definitely make a representation to the government and address the issue. We urge the government to immediately withdraw the order.”