This Article is From Jun 17, 2016

No End To Dal Misery: Government Missing The 'Pulse' On Inflation?

The food minister couldn't say when prices are likely to come down but said the government is doing its best to stabilise prices. (File Photo)

New Delhi: The Union Food Minister said the government will provide 1 kg of arhar dal at Rs 120 through the National Co-operative Consumers' Federation of India Ltd. that will use mobile trucks to ease the burden of the consistent high prices of pulses over the last many months. But for daily wage earners like Rati Devi, that's not really encouraging.

"For months now, we have been eating dal once every 15 days of so. Dal is unaffordable, even tomatoes are touching Rs 100 per kg," she said.

Geeta Devi, also a daily wage earner who has come to Delhi to look for work, said, "Even at Rs120 a kg, it's still out of our reach. I have two children and I earn just Rs 200 a day when I get some work."

So are high dal prices here to stay?

The food minister couldn't say when prices are likely to come down but said the government is doing its best to stabilise prices.

"Everything can't be always blamed on the Centre, state governments also need to do their bit," said Union Food Minister Ram Vilas Paswan.

The shortfall is a massive 7.6 million tons.

India is importing about 39,000 tons. But only 14,000 tons has actually come in. Of this, only 7000 tons were on its way to the market last week. Adding to the problem:  state governments are not willing to lift the pulses the Centre is offering. (Unmilled arhar at Rs 66 per kg and Urad at Rs 82 per kg)

Renowned agricultural economist Ashok Gulati, criticised the government, saying, "There is a major contradiction in the policy.

You allow imports but anybody importing. You do not allow any trader to hold stocks. So the ships are waiting but you cannot unload anything in the market because your stocking laws are so restrictive which do not allow any business. I don't think the government has full grip of how the market really functions. and therefore it has one leg tied down and the other leg trying to run."

Ironically, the current shortfall of over seven million tons is about the same as three years ago.

Since then two poor monsoons and a limited number of exporting countries have reduced supply, and the government hasn't been able to find a solution for a year now.
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