Govt Imposes Stock Limits on Tur, Chana to Curb Hoarding, Control Prices

In a decisive move to stabilize the prices of essential commodities, the Indian government announced on Friday the imposition of stock limits on tur and chana dals until September this year. This strategic action, encompassing wholesalers, retailers, big chain retailers, millers, and importers, is designed to curb hoarding and speculative activities, thereby making these pulses more affordable for consumers.

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The directive, known as The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Amendment Order, 2024, took immediate effect from June 21, 2024. It sets specific stock limits for tur and chana, including kabuli chana, across all states and union territories until September 30, 2024. For wholesalers, the limit is set at 200 tonnes; retailers and each retail outlet can hold up to 5 tonnes; big chain retailers are allowed 200 tonnes at their depots; millers are restricted to the last three months of production or 25 per cent of their annual installed capacity, whichever is higher. Importers face restrictions on holding imported stock beyond 45 days from the date of customs clearance.

Entities exceeding these limits are mandated to declare their stock positions on the Department of Consumer Affairs portal and align with the prescribed limits by July 12, 2024. This measure is part of a broader initiative by the government to monitor and manage the prices of essential commodities closely.

The Department of Consumer Affairs has been vigilant in overseeing the stock positions of pulses through a dedicated disclosure portal. Efforts to enforce mandatory stock disclosure began in early April 2024, with subsequent inspections in major pulses-producing states and trading hubs until May 10, 2024. The government also engaged in discussions with various stakeholders in the supply chain to ensure transparent stock disclosure and maintain price stability for consumers.

To further support domestic production and availability, the government reduced the import duty on desi chana by 66 per cent effective May 4, 2024. This policy adjustment has encouraged imports and resulted in increased sowing of chana in major producing countries. Notably, Australia's chana production is projected to rise significantly from 5 lakh tonnes in the 2023-24 season to 11 lakh tonnes in the 2024-25 season, with availability expected from October 2024 onwards.

Additionally, favorable conditions such as predicted above-normal monsoon rains by the India Meteorological Department (IMD) and high price realisation are anticipated to boost the sowing of Kharif pulses like tur and urad. The arrival of this year's crop of tur from East African countries from August 2024 onwards is expected to further assist in reducing prices. With new crops of chana arriving from Australia in October 2024, these measures collectively aim to ensure sustained availability of these pulses at reasonable prices for Indian consumers.