Centre's action cools off dal prices

NEW DELHI: Prices of all major pulses have crashed, and arhar, in particular, is now selling in the range of Rs 120 and Rs 136 a kg in the four metro cities. Arhar is retailing at Rs 102 per kg even in Patna from where Bihar chief minister Nitish Kumar had launched an attack on the Centre's failure to check prices with his slogan "Arhar Modi" just before the assembly election.

In fact, arhar is selling below Rs 100 a kg in eight cities and towns, including Jaipur, Gorakhpur, Durg and Rourkela. The prices of pulses sky-rocketed from March 2015 to November. But, it started declining after that. Sources in the consumer affairs ministry said the prices plateaued in November when the Centre asked states to intensify crackdown on hoarders.

According to government data, over 1.33 lakh tonnes of pulses were seized during raids last year and these were released in the market at a cheaper rate. Subsequently ,a host of bold measures were taken, including imposition of stock limits to prevent hoarding and scrapping of exemptions to large retailers, importers, warehouses and food-processing industries from stockholding norms.

The government's decision to import huge quantity of pulses and creating buffer stock further resulted in coo ling of prices.So far around 1.7 lakh tonnes of buffer stock has been created. "We are also releasing them into the market through state governments and our agencies to check prices," said consumer affairs minister Ram Vilas Paswan.

The situation on the price front is likely to improve further once pulses, sown during the current kharif season, come to market post-harvest.Encouraged by the prospect of better returns due to incre ase in minimum support prices (MSP), farmers have increased sown area under pul ses this season.

The overall sown area under pulses stands at 139.42 lakh hectares as on August 26, which is nearly 36 lakh hectares higher than the sown area during the corresponding period of last year. Though the area under paddy and oilseeds have also increased, pulses have seen substantial increase in acreage.

As a result, it is estimated that pulses production may touch a record 20 million tonnes in 2016-17 crop year (JulyJune), the highest since 1957.Backed by buffer stock and increased production, the fresh supply will ultimately help in reduction of prices of pulses for consumers who are currently paying higher prices as compared to last year.

Though initially the decision was to create buffer stock of 2 lakh tonnes of pulses, it was later increased to 20 lakh tonnes. The Cabinet is likely to approve the financing for creating this huge buffer stock.

Sources said with the increased availability of imported pulses and the estimate of a bumper harvest, the retailers are no more going for extra stocks. "They are disposing old stock fearing further crash in prices. This trend will continue," said an official.