1. Commodity News

Stock Limits on Pulses; Edible Oil Prices Still Soar High

Sugandh Bhatnagar
Sugandh Bhatnagar
Government has imposed stock limits to control the rising prices.

Highlight: MoFCA has imposed stock limits on pulses to control the prices, while the edible oil prices still soar high, despite all efforts.

Since the last few days, two of the agriculture commodities have been quite in focus due to the sharp increase in their prices. This has not only affected the exporters, traders but also pocket of the common man. It has put the household budget under stress.

With the various measures taken up by the government, the prices have come off their peaks but are expected to stay elevated for few months due to global factors as well as erratic monsoon.

In an attempt to tame the rising price pressures on pulses, the Ministry of Consumer Affairs, Food & Public Distribution, and Ministry of Commerce have been prolific. The Ministries have come up with six major policy actions to ease the pressures. Despite all the efforts the prices don’t seem to be loosening up. The government moderated the import duty on pulses to increase the import of the pulses from abroad.

Stock limits on Pulses:

In their latest move, the government has enforced stock limits for all pulses except green gram (Mung Dal) with immediate effect. This limit will remain in force until October and applies to all wholesalers, retailers, importers and mill owners.

According to Union Ministry of Food and Consumer Affairs (MoFCA), wholesaler stocks are limited to 200 tonnes of pulses. There is an added condition that the retailers cannot hold 200 tonnes of a single variety of pulses. For the retailers, this limit is 5 tonnes and for the mill owners, the stock limit is equal to production in the last three months or 25% of their annual installed capacity whichever is higher. The importers can hold the stocks as much as the wholesalers.

 Centre has also asked all the state to demand the information of all the stocks present with the importers, traders and millers.

Edible Oils Price Scenario:

In the same line as pulses, the Edible Oil prices are expected to remain high until the new crop arrives in October- November. In the International market the prices of edible oils have jumped sharply due to various factors. For example, the soyabean oil price has increased sharply due to efforts of making renewable bio diesel fuel from it in the US, Brazil and other countries.

The prices of edible oils in the retail markets have gone up by 52 % in July compared to the year ago period.  To control the prices of edible oils, the duty on crude Palm oil has been cut by 5% from June 30, 2021 to September 30, 2021. Further the duty on refined Palm oil has been reduced to 37.5% from 45%. But all these efforts don’t seem to soften the prices. 

Stay tuned to Krishi Jagran for more such commodity updates!

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