What is the News?
Government of India has eased stock holding limits on pulses after traders protested by staying away from the buying-selling activities in mandis across the country.
- The Department of Consumer Affairs had issued the Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021.
- The order was issued in exercise of the powers conferred by section 3 of the Essential Commodities Act,1955.
- The order had imposed stock holding limits on all pulses barring moong or green gram for a period up to October 31, 2021.
- If the stocks of entities exceed the prescribed limits, it has to be declared on the online portal of the Department of Consumer Affairs
Why was this order issued?
- There was a sustained increase in the price (inflation) of pulses in March-April,2021.
- Hence, this decision was needed to prevent hoarding and check price rise.
What has been done now?
- The Government of India has exempted importers of pulses from stock limits and also relaxed the norms for wholesalers and millers.
- These relaxations have been made in view of softening of prices of all the key varieties of pulses.
- However, stock limits will now be applicable only on tur, urad, gram and masoor till October 31.
- Moreover, all millers and importers will have to continue to declare their stocks on the web portal of the consumer affairs ministry.
Note: This order was totally in variance with the Essential Commodities (Amendment) Act, 2020.However, since the implementation of the act has been stayed by the Supreme Court.This allowed the government to reintroduce stock holding limits under Essential Commodities Act,1955.