Govt extends stock holding limits for pulses till Dec 3

Traders of pulses will have to adhere to strict stock limits till December 3 as a measure against hoarding that could lead to higher prices, the consumer affairs ministry said in a notification on Monday, extending the period to restrict inventory from October 31 announced earlier.

- Zia Haq zia

A deficient south-west monsoon due to the El Nino weather pattern has shrunk the area sown with various types of widely consumed pulses, considered essential items. It is likely to stoke prices, analysts said. India depends on imports to meet its domestic demand for lentils.

In June, to ease supplies of pulses amid high inflation, the Centre had imposed caps on the quantity of two widely consumed variety of pulses -- tur (pigeon pea) and urad (black.gram) that traders were allowed to store, a measure known as stockholding limits.

Stock limits, imposed under the Essential Commodities Act, ensure traders and wholesalers can't hold more than the prescribed quantities of a commodity, thereby minimising the scope of hoarding to inflate prices.