Government Requests Lentil Stock Data to Prevent Price Manipulation

In response to signs of price manipulation and cartelization among traders, supply-chain intermediaries, and retailers of lentils (masur) leading up to a high-demand festive season, the Indian government has invoked the Essential Commodities Act. This action requires all stakeholders in the lentil market to declare their stock holdings on a designated portal managed by the consumer affairs department every Friday. Failure to disclose stocks will be treated as hoarding and can result in punitive actions under the Essential Commodities Act, including stock seizures, business closures, and prosecution of black-marketeers.

Consumer Affairs Secretary Rohit Kumar Singh emphasized the government's commitment to fair trade and profitability while maintaining strict opposition to cartelization, which is considered detrimental to both consumers and farmers. India has been grappling with food inflation, which surged to 11% in July, with pulses inflation rising to 13.27%.

As the festive season approaches, the government is closely monitoring the prices of essential commodities. Singh highlighted the initiation of a broad-based procurement of lentils at minimum support prices (MSP) for a state-owned stockpile after the upcoming summer harvest. If traders collude to inflate prices, the government may end up paying higher than MSP for the lentil stockpile, which could further exacerbate inflation concerns.

To combat inflation, India has implemented various measures, including banning rice and wheat exports, imposing a 40% duty on onion exports, and permitting duty-free imports of pulses. The government is also intensifying lentil imports from countries like Canada and African nations. However, there are concerns that a few market players are attempting to manipulate prices to the detriment of consumers and the nation.

The government remains vigilant and is prepared to take stringent measures to ensure the availability of all pulses at reasonable prices during the festive season. This year, adverse weather conditions, including unseasonal heavy rains in Maharashtra and a patchy monsoon in rain-fed growing regions in Karnataka, Andhra Pradesh, and Telangana, have led to elevated prices of pigeon peas (tur) and black gram (urad). Despite these challenges, overall lentil production has seen a slight increase, according to estimates from the agriculture ministry.

Also Read: Gujarat Gas increased gas charges for customers in Gujarat’s Morbi

OTT India updates you with the latest news, The Country’s no.1 digital news platform OTT India, Keeps you updated with national, and international news from all around the world. For more such updates, download the OTT India app on your Android and IOS device.