Lifting stock limit: tur little tur late?

PUNE: The Centre’s instruction to state governments to lift the stock limit on pulses may be welcomed by traders, but it is hardly going to benefit farmers or arrest the fall in price of the commodity.

Union food minister Ram Vilas Paswan had tweeted that, “in view of ample availability of pulses in the country and their falling prices, we have directed immediate removal of stock limit on pulses. For the benefit of farmers growing pulses, we have directed all state governments to remove stock limit on pulses.”

Removal of stock limit helps traders, processors and MNC trade houses to buy more tur, which in turn can arrest the falling prices.

“The decision of the government to lift stock limits will clear the supply bottlenecks and create a level-playing field for growers, sellers and consumers. The risks of understocking at the dealer-level and oversupply at the grower-level have been mitigated by this step,” said Pravin Dongre, chairman, India Pulses and Grains Association (IPGA).

However, this decision may not raise tur prices even up to the minimum support price levels nor help farmers as they have already sold their produce.