Govt extends trade regulations on essential commodities for another year

The union cabinet chaired by the Prime Minister Narendra Modi on Tuesda approved the extension of validity of a central order to regulate trade in respect of pulses, edible oils and edible oilseeds under the Essential Commodities Act for a further period of one year, that is, from 1 October 2015 to 30 September 2016.

This will enable states to regulate trade of these essential commodities and to continue to take effective operations under the Essential Commodities Act, 1955.

They can impose stock limits / licensing requirements etc to curb unscrupulous trading, hoarding and profiteering. The extension will also help the states in tackling the problem of ensuring adequate availability of these commodities in the domestic market and keep prices under control.

The government has taken a series of policies, initiatives and measures to enhance availability and moderate prices of essential commodities, especially pulses and onions.

Future trade in pulses like urad and tur has already been suspended. Export of pulses has been banned and there is zero duty on import of pulses. Pulses have also been included for assistance under the price stabilization scheme.

Besides, to increase availability of pulses in the domestic market, orders have been placed foe import of 5,000 tonnes of urad and 5,000 tonnes of tur. These imports are likely to reach shortly, which will ease the price situation.