If the retail prices of pulses, especially packaged ones, do not come down, the Centre may soon invoke the Essential Commodities Act (ECA) to impose a limit on maximum retail price (MRP).
“ECA gives the government the power to impose limits on retail prices of 22 essential commodities. We may invoke the Act soon if packaged essentials do not come under control,” Food Minister Ram Vilas Paswan said at a press conference here on Monday, adding that the existing and stock limit for pulses and export ban will continue.
Food Secretary Hem Pande noted that even as the wholesale prices of pulses had come down, the retail prices were still high.
For instance, arhar wholesale was selling at Rs 111/kg but it is being sold at Rs 119/kg, urad wholesale was RS 122/kg, but retail prices is Rs 130/kg, adding that the “ideal gap between wholesale and retails prices should be between 0.15 per cent”.
Before invoking the Act, the Centre would study any “unprecedented”gap in wholesale and retail prices of 22 commodities under the ECA, such as sugar, milk, and edible oil, Pande said.
Legal metrology rules
In a notification issued on September 7, the Food Ministry had modified the legal metrology (packaged commodities) rules that enable governments to fix retail prices.
As per the modification, if the retail sale price of any essential commodity is “fixed and notified by the competent authority under the Essential Commodities Act, the same shall apply''.
It also also says that once the government fixes and notifies the standard quantity such as 500 gram, 1 kg or 2 kg, retailers will have to comply with the norms. If found defaulting, the entire stock of a retailer can be seized or s/he may have to pay a fine of up to Rs 5,000.
Paswan also said that the Centre would employ an independent agency to collect information about the retail prices of essentials at the block/district/State level.
“We will not depend wholly on information provide by the States at present,” he added
Buffer limit hiked
Earlier in the day, the Cabinet Committee on Economic Affairs approved the Ministry’s proposal to increase the buffer stock for pulses up to 20 lakh tonnes. “The buffer stock will be built through domestic procurement and imports of 10 lakh tonnes each,” Paswan said.
He said requisite funds of Rs 18,500 crore for this operation would be provided to the 'Price Stabilisation Fund' Scheme of the Department, for which the Ministry is in talks with the Finance Ministry.
The allocation/release of the pulses from the buffer stock would be made to States/Union Territories and Central Agencies.
“Pulses would also be released through strategic open market sale. For managing the buffer, professional pulses buffer management entity may also be engaged,” the CCEA decided.