Govt directs big retailers to reduce pulses prices in line with mandi trends

New Delhi: Despite a decline in the wholesale prices of key pulses like tur and urad over the past three months, retail prices have remained high, prompting the government to call for corrective action.

To put a check on high profit-making practices, consumer affairs secretary Nidhi Khare has directed major retail chains to reduce retail prices and avoid profiteering from the widening gap between wholesale and retail rates, a discrepancy the government finds increasingly concerning, the ministry said in a statement.

The secretary on Tuesday summoned the Retailers Association of India (RAI) and representatives from top retail chains such as Reliance Retail, Vishal Mart, DMart, Spencer’s, and More Retail, and directed them to bring the retail prices in sync with wholesale prices, as the current retail prices are indicative of increasingly unwarranted margins that retailers are extracting from the market dynamics.

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“The trends are being closely tracked and necessary measures will have to be initiated if the divergences are found to be widening,” the secretary told big chain retailers.

“Prices of tur and urad in major mandis have dropped by nearly 10%, but retail prices have not seen a similar decline,” Khare said.

She further said that retail prices of chana continue to rise, even though its prices in wholesale markets have shown a reducing trend.

Khare’s directive to retailers is particularly critical during the festival season, a time when high retail prices could dampen celebrations for consumers already grappling with food inflation.

Also Read: Govt directs big retail chain to lower pulse prices in line with drop in wholesale prices

On 3 July, the mandi price of tur was ₹12,100 per quintal, which decreased to ₹11,000 by 4 October. In contrast, the price of urad fell from ₹9,000 per quintal to ₹8,400 per quintal during the same period, as per the consumer affairs ministry data. Meanwhile, the wholesale price of chana dal increased from ₹6,950 per quintal to ₹7,800 per quintal.

As of 7 October, average retail price of tur was ₹163.31 per kg, urad was priced at ₹124.79 per kg, and chana dal was priced at ₹94.32 per kg.

Additionally, the stocks held by major retail chains have risen over the past three months, from 7,868 tonnes on 10 August to 8,360.71 tonnes on 5 October.

In preparation for the upcoming Rabi season, Khare highlighted that the sowing area for kharif pulses had exceeded last year’s by over 7%, with good crop conditions reported.

Sowing of pulses, a key kharif crop, rose 7.5% and it’s sowing expanded to 12.81 million hectares from 11.92 million hectares last year, with tur (arhar) dal alone accounting for 4.65 million hectares, as per the agriculture ministry data.

These developments come as a positive sign, with the government aiming to increase self-sufficiency in pulses production.

Also Read: India reports significant increase in paddy and pulses sowing due to robust monsoon

As part of the preparations for the upcoming Rabi season, the Department of Agriculture & Farmers Welfare has formulated focused plans for major producing states, while National Agricultural Cooperative Marketing Federation of India (Nafed) and National Co-operative Consumers' Federation of India Ltd (NCCF) will continue be involved with seed distribution and farmer registration, building on the successful Kharif season model, it said.

Pulses production has continued to decline

Pulses production has continued to decline, from 27.3 million tonnes in FY22 to 26 million tonnes in FY23, and 24.5 million tonnes in FY24, according to agriculture ministry data.

Over the last 5 years, the most pulses produced was 27.3 million tonnes in FY22, and the lowest was 23 million tonnes in FY20, data showed.

The production of kharif pulses has also declined, dropping from 8.23 million tonnes in FY22 to 7.62 million tonnes in FY23, and shrinking further to 6.86 million tonnes in FY24, agriculture ministry data showed.