In the wake of recent steep rise in prices of pulses, the Confederation of All India Traders (CAIT) in a communique sent to Union finance minister Arun Jaitley has alleged that corporate retailers who are importers are instrumental in creating pulses crisis in the country.
The CAIT has said that in the garb of recent order of Union government for conducting raids on hoarders, the traders across the country are being victimised. The CAIT has called for immediate intervention of Union finance minister to check hoarding by big corporate retailers.
CAIT national president B C Bhartia and secretary-general Praveen Khandelwal have expressed deep concern over the issue of price rise and supported steps taken by the government in this regard. However, the CAIT has requested for some time to be given to food grain dealers for obtaining licence of essential commodities. It is pertinent to mention that the Act has been amended on October 18, 2015, and in the last 10 years there was no licence or any stock order on food grains and pulses.
The CAIT added that stock limit imposed may be in tune with population and consumption of a city like for A class cities 3,500 quintal, B class cities 2,000 quintal, C class cities 1,500 quintal and for D class cities 1,000 quintal in order to maintain sufficient flow of pulses in each city. It is submitted that for processors stock limit of one month or 45 days processing capacity per day may be prescribed for maintaining sufficient processing stock.
According to CAIT, the price rise has occurred due to production of less crops of pulses in India this year. India has been dependent on Africa, Burma, China, Australia, and Canada for 40% of its requirement of pulses. In order to ensure genuine imports, only processing companies should be allowed to import such pulses in tune with their processing capacity. No trader, reseller of raw material including MNCs or corporate houses should be allowed to import and sell in the domestic market. Further, if allowed to import such commodities, the stocking period should be fixed from the time of arrival of goods to disposal or sold which may not be more than 30 days. Such steps will reduce hoarding options.
It is further submitted that stock limits of MNCs and corporate retailers should be the same as prescribed for domestic markets. The stock limit should remain same across the country for both wholesale & retail. The states should not vary stock limits between traders and corporate retailers. Number of big retailers have imported pulses and hoarded the same for large periods of time, which has encouraged high rise in prices. A careful study of the business module from customs department of such importers will reveal the period between date of importing merchandise and selling the same. Such an in between period is nothing but hoarding.
The CAIT has also drawn attention of the government towards warehouses of big corporate retailers where presumably they have made large stocks to feed their respective stores in different states. A check on their warehouses will certainly bring much stocks in open market. Since gram, gramdal, wheat, rice, green peas, white peas and other food grains are available in abundance, therefore no stock limit may be prescribed for these items.
