The government ended all exemptions on stock limits of pulses.
In a desperate bid to bring down the spiraling prices of pulses, the government today ended all exemptions on stock limits of pulses for exporters, food processors and large retailers, departmental stores with multiple outlets.
The decision was taken on Friday during a meeting chaired by the cabinet secretary. The officials of the Agriculture and Food Supply Ministry were also present at the meeting.
"Various remedial measures are underway for a month till the domestic produce is available in the market. There is need to ensure that no domestic player is sitting on larger than prescribed stocks," a senior government official said.
On September 28, the government had extended the stock limit of pulses, oil-seeds and edible oil till September 2016.
But the government order had exempted three categories -- exporters with import-export code issued by the Directorate General of Foreign Trade; Legal food processors, which use pulses as a raw material; and retailers and departmental stores with multiple outlets.
While experts have been protesting against the imposition of stock limits, the government has acted on feedback that some chunk of the pulses available within the country may have been stored by such players.
Expert believe stock limits imposition has a negative effect as those holding stocks siphon off additional stocks to blackmarketeers and the data on availability of food grains and other items becomes opaque.
Also, restriction on the certified exporters sends the wrong signal as they may have entered contracts with others to export the key kitchen item and cannot be hauled up because of the spike in pulse prices.