Agri Picks Report September 23, 2024: Geojit Financial Services

commodities

Geojit Financial Services's report on Daily Agri Picks

The government is unlikely to extend the stock limits on tur and chana, which are set to expire on Sep 30, a senior government official told Informist. "We see ample supply of both the commodities in the country, and with prices falling, the government does not see a reason to extend such limits," the official said. On Jun 21, the government had imposed stock limits on tur and chana for retailers, wholesalers and millers till Sep 30 to prevent unscrupulous speculation and improve affordability in domestic markets. A stock limit of 200 tn on tur and chana was made applicable to wholesalers and 5 tn to retailers. For big chain retailers, the stock limit for these pulses was kept at 5 tn at each retail outlet and 200 tn at depots. Importers werenot allowed to hold imported stock beyond 45 days from the date of customs clearance. Not extending the stock limits will benefit the pulses industry and help the government keep prices stable during the festival season, said Satish Upadhyay, secretary of the Indian Pulses and Grains Association. "Now that imports have started coming in, the order (to not extend the restrictions) becomes even more important. If the stock limits are not lifted, importers will not be able to import in huge quantities because if you have 50,000-tn vessels coming in, then you cannot sell the entire quantity in 45 days," he said. At times, traders and importers will also hold stocks when prices fall to get a fair price, Upadhyay said. "If the order is extended, importers will not sign larger orders, thus reducing the country's imports," he said. According to Upadhyay, with arrivals of chana from Australia set to begin in October, the order will provide an impetus for higher supply. "There is some tur crop lying with Mozambique as well, which will be able to come in if the stock limit is lifted.

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