In an effort to prevent hoarding and tackle price escalation, the Indian government has issued a directive on Friday, imposing stock limits on tur and urad dals. Wholesalers, retailers, importers, and millers will be subject to these limits until October. The objective of this action is to maintain a balanced availability of these dals in the market and keep their prices in check.
An order in this regard was issued with immediate effect by the Union Food and Consumer Affairs Ministry.
According to the data maintained by the ministry, there has been a significant increase in the average retail prices of tur and urad in India. On June 2, the all India average retail price of tur rose by 19 percent to INR 122.68 per kg, compared to INR 103.25 per kg a year ago. Similarly, the average retail price of urad increased by 5.26 percent to INR 110.58 per kg from INR 105.05 per kg in the same period.
Consumer Affairs Secretary Rohit Kumar Singh, said, “Under this order, stock limits have been prescribed for tur and urad until 31st October 2023 for all States and Union Territories.”
As per the issued order, the following stock limits have been imposed: wholesalers are limited to 200 tonnes each for both tur and urad, retailers and retail outlets are limited to 5 tonnes each for both varieties, and big chain retailers are limited to 200 tonnes at the depot.
As per the official statement, millers will have a stock limit set at either the last three months of production or 25 percent of their annual installed capacity, whichever is higher. On the other hand, importers are prohibited from holding stock beyond 30 days from the date of customs clearance.
The ministry has requested the relevant legal entities to report their stock position on the Department of Consumer Affairs’ portal (https://fcainfoweb.nic.in/psp). If the stocks held by these entities exceed the prescribed limits, they are required to reduce their stock levels to comply with the prescribed limits within 30 days from the date of notification.
The government’s decision to impose stock limits on tur and urad is a continuation of its ongoing efforts to curb the prices of essential commodities. This move reflects the government’s consistent commitment to address the issue of rising prices and ensure accessibility to essential goods.
The stock position of tur and urad is being closely monitored by the Department of Consumer Affairs through a stock disclosure portal. This monitoring is conducted on a weekly basis in coordination with state governments.
To ensure the disclosure of stocks, including visits by senior officers to Karnataka, Madhya Pradesh, Maharashtra, and Tamil Nadu, the Department of Consumer Affairs engaged in extensive interactions with various stakeholders such as importers, millers, and retailers. These interactions aimed to assess the ground situation and gather comprehensive insights.
According to the third estimate provided by the agriculture ministry, the tur production for the 2022-23 crop year (July-June) is projected to decrease to 3.43 million tonnes compared to the previous year’s 4.22 million tonnes. Similarly, the urad output is anticipated to decline to 2.61 million tonnes from 2.77 million tonnes.