The government is keeping a close watch on run-away tur prices and willing to rein it in with stern action if prices do not settle at current level.
Rohit Kumar Singh, Secretary, Department of Consumer Affairs said the government expects tur prices to settle at the current level (₹111 a kg) and is tracking it on a daily basis. “If it goes any further we will start taking action and definitely do not want it to touch ₹125-130,” he said.
Speculation on social media, in contrast to reality, are driving the pulses and other agricultural commodities prices, he said.
In order to tackle speculative trade, he said the government is collecting details of production and prices of over 22 commodities from 500 centres across the country and updating it daily on the government portal to scotch rumours.
Predictive analysis
The government has also started predictive pricing by a month in advance and is checking its accuracy through the root mean square formula, he said at the sixth edition of The Pulses Conclave on Friday.
Besides keeping an eye on pulses production in India, the government is also looking at development in other countries that are exporting to India. For instance, he said Myanmar has assured to export 7.5 lakh tonnes of urad while Canada and East Africa have ample stock of masoor (lentil) for sales to India.
Recently, Singh said pulses consignment from Mozambique to India was stuck after the US imposed trade restrictions by the Financial Action Task Force for terror funding but the issue was sorted by India in two days. The government is also working with Ethiopia to grow tur for consumption in India.
Other measures
Among other measures to bring down commodity prices, the government will send a signal by asking the trade to declare their inventory and if the prices do not fall even then, stock limits will be imposed under Essential Commodities Act, he said.
Bimal Kothari, Chairman, Indian Pulses and Grains Association, said pulses imports will increase to 25 lakh tonnes in the next financial year against 20-22 lakh in FY23. India is expected to import 8-9 lakh tonnes of tur this fiscal against 8 lakh tonnes last fiscal. Tur prices will start coming down before the festival demand peaks in August as Myanmar will be ready with its exports, he said .