Govt to import 10K tonnes of pulses to check prices

NEW DELHI: The government today decided to import 10,000 tonnes of pulses for buffer stock and extend zero import duty on chickpeas and masoor till September 2016 as part of its steps to boost local supply and check prices.

The government will soon float tenders for 5,000 tonnes each of tur and urad dals.

These decisions were taken at a high-level committee meeting chaired by Cabinet Secretary P K Sinha, that reviewed prices of pulses and other essential commodities.

Earlier this week, the Cabinet Committee on Economic Affairs (CCEA) approved creation of a buffer stock of pulses by procuring 1.5 lakh tonnes at market price and the stock would be used to check spurts in retail rates.

"It was observed that prices of most essential commodities are under control and even pulses and onions have been showing a declining trend. With coming of fresh Kharif crops, prices are likely to further moderate", an official statement said.

The Cabinet Secretary asked agencies like FCI, NAFED and SFAC to step up procurement of tur and urad dals to build the buffer stock.

"To further supplement and augment the buffer stock, it was also decided to start import of pulses and to float tenders for 5,000 tonnes of tur dal and another 5,000 tonnes for urad dal", the statement said.

MMTC had earlier imported 5,000 tonnes of tur for sale in the retail markets at subsidised price.

In the meeting, it was also decided to recommend further extension of zero import duty on chick peas and lentils (masoor) up to September 2016. The duties on other pulses have already been extended up to September next year.

"All these measures would enable further building of adequate buffer stock of pulses and also increase availability of pulses in the domestic market", the statement said.

The need for creating the buffer stock arose as retail prices have gone through the roof due to fall in domestic output by two million tonnes to 17.2 million tonnes in 2014-15 crop year (July-June).

According to the Consumer Affairs Ministry data, the maximum price of tur is currently ruling at Rs 178 per kg while the average price is Rs 160 per kg. The maximum price of urad dal is Rs 190 per kg while the average rate is Rs 120/kg.

India is the world's largest producer of pulses, but its domestic demand outstrips production. The shortfall is met from imports.