Amid the skyrocketing price of pulses, the government on Tuesday asked retailers to reduce profit margins on pulses. The government said that retail prices of tur (arhar), urad and chana pulses have not declined in proportion to the decline of about 4 percent in major wholesale markets in the last one month. Retailers have been asked to charge reasonable profit margins to provide relief to consumers. According to PTI news, the government warned that it would take strict action against dishonest speculation and profiteering by market players.
Department held a meeting
According to the news, the Department of Consumer Affairs on Tuesday held a meeting with the Retailers Association of India (RAI) to discuss the price scenario regarding pulses. The meeting, chaired by Nidhi Khare, Secretary, Department of Consumer Affairs, also reviewed compliance with stock limits for tur and chana. The meeting was attended by representatives from RAI, Reliance Retail, D-Mart, Tata Stores, Spencer’s, RSPG and V-Mart. RAI has over 2,300 members, and has over 6,00,000 retail outlets across the country.
Retailers getting higher profit margins
According to an official statement, the secretary informed that prices of chana, tur and urad have declined by up to 4 per cent in major mandis in the last one month, but no such decline has been observed in retail prices. He pointed out divergent trends between wholesale mandi prices and retail prices, which suggests that retailers are getting higher profit margins, the statement said. Taking into account the current price scenario and the kharif outlook, Khare asked the retail industry to extend all possible support to the government’s efforts to keep the prices of pulses affordable to consumers.
Retail industry participants assured
The statement said that the retail industry participants assured that they would make necessary adjustments in their retail margins and maintain it at nominal levels to provide affordable prices to consumers. Khare stressed that the stock position of all stockholding entities, including large retailers, is being closely monitored to ensure that the prescribed limits are not breached. He warned that violation of stock limits, unscrupulous speculation and profiteering on the part of market players would invite strict action from the government.
