In an effort to maintain price stability and prevent hoarding, the Center urged state governments on Wednesday to diligently monitor the prices and stock levels of Tur and Urad.
During a meeting chaired by Nidhi Khare, the Additional Secretary in the Ministry of Consumer Affairs, the importance of reviewing stock disclosure of tur and urad, as well as the enforcement of stock limits by state governments, was emphasized.
The meeting was attended by officials from the state food and civil supplies departments, as well as representatives from the central warehousing corporation (CWC) and state warehousing corporations (SWCs).
On 2nd June 2023, the Department of Consumer Affairs took action by invoking the Essential Commodities Act, of 1955. This step aimed to impose stock limits on Tur and Urad in order to combat hoarding and speculative practices, while simultaneously ensuring greater affordability for consumers.
During the meeting, a comprehensive examination was conducted on the retail prices, disclosed stock quantities from various entities, and the stock levels in warehouses belonging to CWC and SWC. State representatives were also briefed on the measures taken to rectify any discrepancies found between the quantities pledged by market players with banks and those declared on the stock disclosure portal. Emphasis was placed on the enforcement of stock limits, and state governments were strongly encouraged to take strict action against any violators.
According to a press release, "The stock limit order represents the culmination of several measures implemented by the Department of Consumer Affairs to ensure the affordability of Tur dal and Urad dal for consumers, commencing with the advisory on the stock declaration."
The stock limit order, which applies to all states and Union Territories until October 31, 2023, imposes a limit of 200 metric tons (MT) for wholesalers and 5 MT for retailers. Retail outlets are required to maintain 5 MT each, while larger retail chains must keep 200 MT at their depots. Millers, on the other hand, are expected to maintain stock levels equivalent to the last three months of production or 25% of their annual installed capacity, whichever is higher. All entities falling within these categories are mandated to declare their stock positions on the Department's portal.
Nidhi Khare, the Additional Secretary of the Department of Consumer Affairs, highlighted the significance of the stock limit order in ensuring the affordability of Tur and Urad dal for consumers. She stated, "The stock limit order pertaining to Tur and Urad dal is a critical measure aimed at preventing hoarding and enhancing the accessibility of these pulses to consumers. We strongly urge state governments to diligently monitor prices, verify stock positions, and take strict action against any violations of the stock limit order."
In March 2023, the department established a committee, chaired by Nidhi Khare, to closely monitor the stock of Tur held by various entities, including importers, millers, stockists, and traders. Collaborating closely with state governments, the committee deployed 12 senior officers to assess the ground reality in Karnataka, Madhya Pradesh, Maharashtra, and Tamil Nadu.
