Chennai

TheCentre has authorised Tamil Nadu to impose stock limits on tur dal and urad dal to curb hoarding and contain rising prices, following the state government’s request for restrictions on the storage of essential commodities.

The approval comes amid mounting pressure on household budgets. Tamil Nadu recorded retail inflation of 6.81 per cent in September, the highest among states, while food prices rose 10.62 per cent, according to figures cited in the report.

Pulses have emerged as a particular concern, with prices continuing to climb. The average retail price of tur dal in Tamil Nadu stood at Rs 134.23 per kg in September, compared with the national average of Rs 124.41, a difference of Rs 9.82.

Prices increased further in October, when tur dal sold for Rs 143 per kg and urad dal for Rs 128. Current retail prices have reached Rs 153.43 and Rs 139.67 per kg, respectively.

Under the approved restrictions, wholesalers can hold up to 200 tonnes each of tur and urad. Retailers and large retail businesses will be allowed to maintain stocks of up to five tonnes of each pulse variety.

The restrictions are intended to prevent excessive accumulation by traders, discourage artificial shortages and ensure that supplies remain available in the market. Separate limits have been prescribed for pulse mills. Their permissible stocks will be based on the previous three months’ average processing capacity or 25 per cent of annual processing capacity, whichever is higher.

This arrangement seeks to curb excessive stockholding while allowing mills to maintain supplies required for regular operations. Importers will also face storage restrictions. Companies bringing pulses into India cannot retain consignments for more than 45 days after their arrival in the country.

The measure aims to ensure imported supplies reach the market promptly instead of remaining in storage for prolonged periods. Tamil Nadu had sought the Union Consumer Affairs Ministry’s permission to impose stock limits on rice, edible oils and onions, besides pulses, as part of its efforts to contain food inflation.

However, the Centre has approved restrictions only for tur and urad. With onion prices declining in Tamil Nadu and several other parts of the country, restrictions on onion stocks were considered unnecessary. Approval for stock limits on rice and edible oils has not yet been granted by the Centre.