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This is an archive article published on November 17, 1998

Pulses to be costlier

AHMEDABAD, Nov 16: A very steep rise in prices of grains and pulses is all set to catch the State Government napping even as it is finding i...

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AHMEDABAD, Nov 16: A very steep rise in prices of grains and pulses is all set to catch the State Government napping even as it is finding it hard to contain prices of onions and potatoes.

If the wholesale market trends for the past two months are any indication, the priceline has already started moving upwards at a steady pace. Admitting that there was an alarming rise in prices of grains and pulses, president of the Ahmedabad Grain Merchants Association Bansibhai Patel said the prices could climb higher in the near future if the crops were hit in the exporting countries of east Asia like Korea.

The decision of Madhya Pradesh farmers to switch to soyabean crops had also hit domestic pulses production, he said. Pointing out that Gujarat depended totally on imported pulses, Patel said unseasonal rains had already damaged standing paddy crops in and outside the State, which had to have an effect on the prices.

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Moreover, he said, the Centre had been sitting over the announcement of relaxations in customs duty on pulses import for almost two months. “This is responsible for the current price rise. When consultations on imports in a ministry go on for a long time, details are inevitably leaked out, which allows export cartels to jack up prices by the time the order lands”, he said.

As for rice, Patel said around 40 per cent of paddy crops in Ahmedabad district alone had been damaged in the unseasonal rains. “The situation in other districts is no better”, he said, suggesting that the Food Corporation of India clear its existing stocks within three months as new arrivals will begin from February.

Patel also urged the FCI to sell wheat to wholesalers on the condition that the same would be passed on only to retailers. At present, FCI sells wheat mostly to roller flour mills and to co-operative societies “which remain only on paper”, Patel alleged.

Echoing Patel’s views, Gulabbhai, a retail dealer in Navrangpura, said that the high prices had hammered down the demand for pulses in the retail market. “No one wants to buy at these high prices… The customers are hoping that new crops will reduce the prices”, he said.

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Gulabbhai said the import duty relaxations had not had any effect on the retail market so far. “It’ll be some time before the benefit percolates down to the ultimate buyers”, he said.

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