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Informist, Friday, Sep 20, 2024

 

By Pallavi Singhal

 

MUMBAI - The government is unlikely to extend the stock limits on tur and chana, which are set to expire on Sep 30, a senior government official told Informist.

 

"We see ample supply of both the commodities in the country, and with prices falling, the government does not see a reason to extend such limits," the official said. 

 

On Jun 21, the government had imposed stock limits on tur and chana for retailers, wholesalers and millers till Sep 30 to prevent unscrupulous speculation and improve affordability in domestic markets. A stock limit of 200 tn on tur and chana was made applicable to wholesalers and 5 tn to retailers. For big chain retailers, the stock limit for these pulses was kept at 5 tn at each retail outlet and 200 tn at depots. Importers were not allowed to hold imported stock beyond 45 days from the date of customs clearance. 

 

Not extending the stock limits will benefit the pulses industry and help the government keep prices stable during the festival season, said Satish Upadhyay, secretary of the Indian Pulses and Grains Association. "Now that imports have started coming in, the order (to not extend the restrictions) becomes even more important. If the stock limits are not lifted, importers will not be able to import in huge quantities because if you have 50,000-tn vessels coming in, then you cannot sell the entire quantity in 45 days," he said. 

 

At times, traders and importers will also hold stocks when prices fall to get a fair price, Upadhyay said. "If the order is extended, importers will not sign larger orders, thus reducing the country's imports," he said. 

 

According to Upadhyay, with arrivals of chana from Australia set to begin in October, the order will provide an impetus for higher supply. "There is some tur crop lying with Mozambique as well, which will be able to come in if the stock limit is lifted." 

 

Australia, one of the largest exporters of chana to India, is expected to have a bumper chana crop this year. The Australian Bureau of Agricultural and Resource Economics and Sciences estimates chana production in 2024-25 (Jul-Jun) to surge 171% to 1.3 mln tn. Imports from Australia will weigh on domestic prices, the India Pulses and Grains Association said in a report. 

 

While chana prices in the wholesale market of Vidisha in Madhya Pradesh were up 50 rupees at 7,550-7,700 rupees per 100 kg on Thursday, prices of tur in Maharashtra's Solapur were down 500 rupees at 10,400-10,500 rupees per 100 kg. Prices of domestic tur, according to traders, are under pressure from cheaper imported tur. Tur imported from Africa is being traded at 8,500 rupees per 100 kg. 

 

The government expects prices of tur to ease due to higher sowing. After deficient production last year, the area under pulses is up 8% on year at 12.8 mln ha, with tur acreage increasing 14% on year at 4.7 mln ha, government data released on Tuesday showed. The acreage has improved on the back of higher realisation for tur farmers last year. A hike of 8% in kharif MSP this year to 7,550 rupees per 100 kg, along with excess monsoon rainfall, also helped lift acreage.  End

 

Edited by Avishek Dutta

 

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