Govt asks retailers to cut profit margins on pulses, warns of action against profiteering

The government on Tuesday (July 16) pointed out that retail prices of tur, urad, and chana dals have not declined in proportion to about a 4 per cent fall in major wholesale markets in the past one month and asked retailers to charge reasonable profit margins to provide relief to consumers.

The government warned that it would take stern actions against unscrupulous speculation and profiteering by market players.

Meeting with Retailers Association of India

On Tuesday (July 16), the Department of Consumer Affairs organised a meeting with the Retailers Association of India (RAI) in New Delhi to discuss the price scenario in respect of pulses. The meeting, chaired by Nidhi Khare, Secretary, the Department of Consumer Affairs, also reviewed compliance with the stock limits for tur and chana.

The meeting was attended by representatives of RAI, Reliance Retail, D-Mart, Tata Stores, Spencer’s, RSPG, and V-Mart, among others. RAI has more than 2,300 members, having over 6,00,000 retail outlets in the country.

According to an official statement, the secretary "informed that prices of chana, tur, and urad in major mandis had declined by up to 4 per cent in past one month, but retail prices have not seen similar decline".

"She pointed out the diverging trends between wholesale mandi prices and retail prices, which seems to suggest that retailers are deriving higher profit margins," the statement added.

Govt asks retailers to ensure affordable prices of pulses

Considering the current price scenario and Kharif outlook, Khare asked the retail industry to extend all possible support to the government in its efforts to keep prices of dals affordable to the consumers.

"Retail industry participants assured that they would make necessary adjustments in their retail margins and maintain at a nominal level to ensure availability of pulses at affordable prices to the consumers," the statement said.

Stock positions being closely monitored

Khare asserted that the stock positions of all stockholding entities, including big chain retailers, are being closely monitored to ensure that the prescribed limits are not breached.

Breach of stock limits, unscrupulous speculation and profiteering on the part of market players would invite stern actions from the government, she warned.

Govt’s efforts

Khare highlighted that the sowing operations of pulses in the ongoing kharif season are robust.

The government has undertaken numerous efforts in facilitating enhanced production of tur and urad in major kharif pulses-producing states, besides the distribution of good quality seeds to farmers through NAFED and NCCF.

The Department of Agriculture at the Centre is in continuous engagement with the state agriculture departments to provide all necessary support.

(With agency inputs)