Stock limit on pulses: Several market committees in Maharashtra shut in protest

If the government does not withdraw its order, traders will continue the bandh indefinitely.

With an average yield of 0.58 tonne per hectare (actual during kharif 2019-20) and an expected acreage of about 14 million hectare, this year’s kharif pulses output may drop 6.6% to 8.12 million tonne (MT), an official source said.
With an average yield of 0.58 tonne per hectare (actual during kharif 2019-20) and an expected acreage of about 14 million hectare, this year’s kharif pulses output may drop 6.6% to 8.12 million tonne (MT), an official source said.

Traders in several market committees of Maharashtra have stopped purchase and sale of commodities in protest against the government imposing stock limits on pulses. Transactions at Latur, Amravati, Akola, Washim, Khamgaon and other major market committees in the Vidarbha and Marathwada regions have been hit as traders have stopped buying agricultural commodities indefinitely since Monday.

The Federation of Association of Traders Maharashtra (FATM) and the Chamber of Associations of Maharashtra Industry and Trade (CAMIT) Mumbai jointly organised a virtual meeting of trade representatives. A decision was taken to observe a one-day token bandh on July 16 against the Centre’s decision. If the government does not withdraw its order, traders will continue the bandh indefinitely.

Last week, the Centre brought into effect the stock limits and movement restrictions on specified foodstuffs (amendment) order 2021, wherein stock limits have been imposed on wholesalers, retailers, millers and importers of pulses. As per the order, stock limits have been prescribed for all pulses except moong until October 31 for all states and Union Territories. Wholesale traders can stock 200 tonne (but not more than 100 tonne of one variety) while retailers can stock a maximum of 5 tonne. Dal millers can stock 25% of their annual installed capacity or the last three months of production, whichever is higher.

Mohan Gurnani, chairman, CAMIT, said the stock limits have been imposed at a time when pulse prices are coming down, and the decision is not in the interest of traders and farmers. Several mandis in Rajasthan are also closed in protest against the decision, he said. Sancheti, president, FATM, said no restrictions have been imposed on imports.

Pulse traders and millers of Madhya Pradesh have also joined forces against the government’s decision. Traders said imposing storage limit on pulses is not rational or practical. The government is encouraging traders to buy pulses from farmers at higher prices and then expecting them to sell at lower prices, a statement issued by Indore Grain Oilseeds Traders Association said.

Traders said at present, prices of pulses other than lentils are below the minimum support price and in such a situation imposing stock limits is not justified.

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