Government Cracks Down On Pulses Price Manipulation

The government has urged retailers to reduce profit margins on tur, urad, and chana dals, citing a 4% decline in wholesale prices. Officials warned of stern actions against price manipulation. Retail industry assured cooperation to maintain affordable prices. Enhanced production efforts for pulses are underway this Kharif season.

The government on Tuesday pointed out that retail prices of tur, urad, and chana dals have not declined in proportion to about a 4 per cent fall in major wholesale markets in the past one month and asked retailers to charge reasonable profit margins for providing relief to consumers.

The government warned that it would take stern actions against unscrupulous speculation and profiteering by market players.

On Tuesday, the Department of Consumer Affairs organised a meeting with the Retailers Association of India (RAI) here to discuss the price scenario in respect of pulses. The meeting, chaired by Nidhi Khare, Secretary of the Department of Consumer Affairs, reviewed compliance with stock limits for tur and chana. Representatives of RAI, Reliance Retail, D-Mart, Tata Stores, Spencer's, RSPG, and V-Mart, among others, attended the meeting. According to an official statement, the secretary informed that prices of chana, tur, and urad in major mandis had declined by up to 4 per cent in the past month, but retail prices have not seen a similar decline.

''She pointed out the diverging trends between wholesale mandi prices and retail prices, which seems to suggest that retailers are deriving higher profit margins,'' the statement added.

Considering the current price scenario and Kharif outlook, Khare asked the retail industry to extend all possible support to the government in its efforts to keep the prices of dals affordable to consumers. Retail industry participants assured that they would make necessary adjustments in their retail margins and maintain them at a nominal level to ensure prices are affordable for consumers, the statement said.

Khare asserted that the stock positions of all stockholding entities, including big chain retailers, are being closely monitored to ensure that the prescribed limits are not breached. Breach of stock limits, unscrupulous speculation, and profiteering by market players would invite stern actions from the government, she warned.

Khare highlighted that the sowing operations of pulses in the ongoing kharif season are robust. The government has undertaken numerous efforts to facilitate enhanced production of tur and urad in major kharif pulses-producing states, besides distributing good quality seeds to farmers through NAFED and NCCF. The Department of Agriculture at the Centre is in continuous engagement with state agriculture departments to provide all necessary support.

(With inputs from agencies.)