Inflation in Pulses: After meeting with representatives from several major retailers of pulses in the national capital on Tuesday, the central government said that a comparison of wholesale and retail prices suggests that retailers are deriving higher profit margins in these commodities. After the meeting, retail industry participants promised to make necessary adjustments in their retail margins in order to ensure fair retail prices, according to an official statement. 

Here are 10 key takeaways:  

  • The meeting, chaired by Consumer Affairs Secretary Nidhi Khare, covered several important aspects related to fair pulse prices, including compliance with stock limits for tur and chana. 
  • The Secretary pointed out that while chana, tur and urad prices in the wholesale markets have declined by as much as four per cent in one month, retail prices have yet to show similar trends.
  • The diverging trends between wholesale mandi prices and retail prices seem to suggest that retailers are deriving higher profit margins, she said. 
  • The meeting was attended by representatives from the Retailers Association of India (RAI), which has more than 2,300 members, besides companies such as D-Mart, Tata Stores, Spencer’s, RSPG and V-Mart. 
  • The Consumer Affairs Secretary also said that the progress of sowing for kharif season pulses is robust.
  • Pulses such as arhar, urad, mung and moth are sown in the kharif season, which typically starts around June and ends in October.
  • The secretary also said that the government had undertaken several steps in facilitating enhanced production of tur and urad in major kharif pulse-producing states.
  • In light of the current price scenario and kharif outlook, she asked the retail industry to extend all possible support to the government in its efforts to keep dal prices affordable to the consumer.
  • She informed that the stock positions of all stockholding entities - including those of big chain retailers - are being closely monitored.
  • Any breach of the said limits, unscrupulous speculation and profiteering on the part of market players will attract stern government action, Khare added.