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Govt to pay agencies Rs 113.40 cr for losses on pulses import

New Delhi: Government today approved reimbursement of Rs 113.40 crore to state-owned MMTC, PEC, STC and cooperative NAFED for incurring losses on import of pulses between 2006 and 2011.Government also said that previously approved import
PTI September 02, 2015 15:03 IST
PTI

New Delhi: Government today approved reimbursement of Rs 113.40 crore to state-owned MMTC, PEC, STC and cooperative NAFED for incurring losses on import of pulses between 2006 and 2011.

Government also said that previously approved import of 5,000 tonnes each of Tur and Urad Dal will be reaching the country by September 5.

These decision were taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.

“The Cabinet has approved the proposal of Ministry of Food and Consumer Affairs to reimburse Rs 113.40 crore of losses on pulses imported between 2006-2011 by NAFED, PEC, STC and MMTC, apart from losses incurred in the sale of pulses up to six months after closure of the scheme,” a statement said.

This will enable PSUs to be financially sound to intensify trading activities to cool down prices of essential commodities, it said.

The Centre had introduced two schemes to bridge the demand-supply gap in pulses during 2006-11. It had asked the four agencies to import and sell in the open market with subject to reimbursement of 15 per cent losses.

The other scheme was to distribute imported pulses via ration shops to poor people at a fixed subsidy of Rs 10 per kg.  Under the new central scheme Price Stabilisation Fund (PSF), the government has started importing pulses after a gap of two years to boost domestic supply and check retail prices of pulses that have skyrocketed beyond Rs 150 per kg.

In a statement the government said: “In order to ensure retail distribution to the consumers, it was decided to import 5,000 tonnes of tur dal and 5,000 tonnes of urad dal by MMTC. The first consignment of imported Dal would be reaching Mumbai by September 5.”

The government said it has taken several measures to increase availability and control the price of essential commodities, especially pulses and onions. 

States have been empowered to impose stock limits on pulses, export of all pulses is banned except Kabuli Chana, organic pulses and lintels to the tune of 10,000 tonnes and there is zero duty on import of pulses, it added.  Prices of pulses have been increasing unabated in the last few weeks.

India imports about four million tonnes of pulses largely through private trade.