Import of pulses, noose on hoarders bring cheers for retailers

Deepak Kumar | The Dollar Business

Additional imports of pulses and a curb on traders’ stock are expected to reduce prices of the commodity and increase its consumption amid festive season, say experts. Soaring price of pulses in the domestic market has prompted the government to import thousands of tonnes to streamline the supply. While the Centre has set the stock limit for pulse traders across the country, state governments have launched a crackdown on hoarders. Small traders say that the price hike affects them most as retail buyers tend to reduce their consumption of the protean-rich food grain. “The government’s measure of ensuring that the prices of lentils (tur dal) are brought down at least in some pockets of this country encourages others to follow and bring prices down. Contrary to popular belief, retailers don’t ever want to sell at high prices because it reduces overall consumption; and it does not anchor well with their efforts of increasing footfall,” Kumar Rajagopalan, CEO of the Retailers Association of India, told The Dollar Business. Rajagopalan pointed out that the short supply of pulses in the market has compelled retailers to procure through new methods. “Market conditions are led by demand and supply. A situation of this kind ensures that retailers look at newer methods of procuring their produce, either directly from farmers or through authorised consolidators,” Rajagopalan said. Prices of pulses have skyrocketed in the recent months and touched as high as Rs. 210 per kg. The government has expedited retail distribution of tur dal at Rs.120 per kg through nearly 500 outlets of Kendriya Bhandar and Safal in various cities to ensure its availability in the market at a better price. The government has taken a number of steps to balance the demand and supply of pulses in the market. It has imposed stock limits to check hoarding of pulses held by exporters, large food processing units and departmental retailers. So far, the government has placed three separate orders to import 10,000 tonnes of pulses. “Instead of importing pulses in bits and pieces, the government should have placed import order for 10,000 tonnes at one time in order to balance its demand and prices,” Atul Kumar Saxena, President of the Indian Importers Association (IIA), told The Dollar Business. In a massive crackdown against hoarders and black-marketers, government officials have seized over 5,800 tonnes of pulses from different parts of the country. At least 2,295 tonnes of pulses were seized from Madhya Pradesh and 2,546 tonnes from Telengana. “These measures including inspections carried out on dealers/stockists of pulses and raids against those who are violating stock limits and indulging in hoarding have begun to show results,” Ministry of Food said in a statement.  

October 21, 2015 | 3:16pm IST.