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

The ministry of consumer affairs on Tuesday asked big retail chains to align their pulse prices with those of declining wholesale rates and cut their profit margins.

As per a ministry statement, wholesale prices of pulses have declined 4% over the past month, reflecting a downturn in the price escalation of essential commodities.

As per the government data, the mandi price of tur in Gulbarga was ₹12,200 per quintal on 15 June, which has since decreased to ₹11,900 per quintal by 12 July.

Similarly, the price of tur has fallen from ₹11,800 per quintal last month to ₹11,700 a quintal this month in the wholesale markets of Indire. In Mumbai, it is down from ₹11,425 to ₹11,125 over the same period.

Also Read: Urad prices soften as monsoon boosts area under cultivation in kharif season: Govt

According to the statement, consumer affairs secretary Nidhi Khare held a meeting on Tuesday with representatives of top retailers such as Reliance Retail, D Mart, Tata Stores, Spencer’s, RSPG, V Mart, among others, as well as the Retailers Association of India (RAI). 

What would reduction in profit margins lead to?

Khare directed them to reduce their profit margins so that the benefits of the decline in wholesale prices of pulses are passed on to consumers.

During the meeting, Khare warned retailers that breaching stock limits, engaging in speculation, or profiteering would result in severe consequences.

The secretary also highlighted the robust sowing progress for kharif pulses. The government has implemented various initiatives to boost the production of tur and urad in major kharif pulses-producing states.

These efforts include distributing high-quality seeds to farmers through National Agricultural Cooperative Marketing Federation (NAFED) and the National Co-operative Consumers' Federation (NCCF), and maintaining continuous engagement with state agriculture departments to provide comprehensive support.

Also Read: Budget 2024: Agriculture likely to see major announcements

According to the agriculture ministry data, the area under pulses has expanded to 6.2 million hectares, up from 4.9 million ha last year. Notably, tur cultivation has surged significantly to 2.8 million hectares from 966,000 hectares.

The retail industry representatives responded positively, committing to adjust their retail margins to nominal levels to ensure that consumers benefit from the reduced mandi prices, the ministry statement said.

Mint reached out to retailers mentioned in the ministry statement. Their responses are awaited. Meanwhile, Kumar Rajagopalan, executive director and chief executive officer of the Retailers Association of India, declined to comment on the matter.