As prices continue to be at elevated levels, the government has decided to extend the stock holding limits imposed on tur and urad varieties of pulses beyond October 31.
Sources told FE that with prospects of decline in production and sluggish imports, the stock holding limits for pulses varieties imposed in June would be extended at least for three months.
Modal urad retail prices rose by Rs 110/kg on Monday, an increase of 10% compared to prices that prevailed six months back.
The government had imposed stock holding limits of 200 tonne for wholesalers, 5 tonne for retailers, 5 tonne at each retail outlets and 200 tonne at depot for big chain retailers.
For importers, the stock holding limits prohibits stocking beyond 30 days from the date of customs clearance.
Mandi prices of tur at Latur, Maharashtra is currently ruling around `11,500/ quintal, highest since 2016 against the minimum support price of rs 7,000 quintal for 2023-24 season (July-June).
According to traders, prices are expected to rise further next month as demand picks up while domestic harvests are expected to be low because of deficient rains and lesser kharif area.
Around 0.1 million tonne (MT) of tur dal is expected to be supplied monthly till December, which would not be sufficient to cool down the prices.
According to the agriculture ministry, the sowing has been down by 5.6% at 4.3 million hectare this year and harvesting of the crop is expected by November.
The ministry has estimated a 18% fall in output of tur for 2022-23 crop year (July-June) at 3.43 MT compared to 4.22 MT in the previous crop year. It has around 16% share in the country’s pulses production of 27.75 MT in 2022-23. Urad production 2022-23 crop year dropped by 6% to 2.61 MT compared to previous year.
Retail inflation in tur dal in August, 2023 rose to 32.2% on year pushing inflation in pulses category to 13.4%. Urad inflation last month was 6.82% on year.