GOVT SHOULD IMPORT PULSES & NOT MNCs
Shimla---The Confederation of All India Traders (CAIT) has expressed its worry over high rise in prices of pulses and has sent a communication today to Union Finance Minister Mr. Arun Jaitley seeking his immediate intervention for a close check on prices of pulses. The CAIT has held MNCs & big retail responsible for high prices since it is a well documented fact that there is a huge gap in demand of pulses in India in comparison to domestic production. This gap is filled by imports which is controlled by MNCs & Big retail due to failure of the Government to secure imports from its own channels.
To deal with the situation, the CAIT has suggested that Government should augment its infrastructure to make imports in sufficient quantity and dump the material in the market to maintain supply side. It should also ensure that import should strictly be allowed directly from Country of Origin and not from any third Country.
In its memorandum, the CAIT has said that pulses shortage is due to low yield in the Country and therefore we are dependent on imports from various countries which has resulted into monopolisation of imports by few big Companies in last few years. It is notably to mention that last year the prices of pulses went high since these big Companies hoarded the pulses in large quantity in other Countries and pulses prices went too high and when Government took action against these Companies through raids, the prices came down.
Mr. B. C. Bhartia, National President & Mr. Praveen Khandelwal, Secretary General of CAIT said that it is known fact that these big Companies hoard the pulses in Cylose or warehouses situated in different Countries and could able to create an artificial shortage of pulses in the Country and siphoning big profits. The CAIT alleged that these Companies enter into a Cartel and manage the prices of their choice.
Spelling out their modalities, the CAIT said that taking advantage of shortage in India they dispatch goods from Burma, Africa, Canada etc in short supply in comparison of demand and inflate the prices exorbitantly through a strategy to increase local price and sell their products at such higher price and always maintain a shortage resulting in upsurge in prices to their advantage. The CAIT has suggested that the price level can be maintained reasonably only when MNCs, FDIs & Corporate sector should be kept out from foodgrain and pulses sector.
The CAIT has suggested to impose stock limit on first importer and a clause of compulsory sale in 15 days of arrival of goods in the Country. It has further suggested that only domestic process houses should be allowed to import foodgrain & pulses.
The CAT regretted that when ever there is any high increase of prices in foodgrain and pulses, the Government take immediate action on small wholeselers and small processing units and no action is taken against hoarding of big retailers, MNCs, and even wholsale cash & carry format under FDI policy and they all manage to hoard goods in large quantity. and yet remain free from the clutches of the Government.
Another important factor of price escalation is online trading and NCDEX operations where the speculators by paying a nominal amount enter into an agreement of future purchase in huge quantity at a higher price which forces an automatic increase in current prices which causes artificial inflation in the market.
**VijyenderSharma*, Press Correspondent Bohan Dehra Road JAWALAMUKHI-176031, Kangra HP(INDIA)*
Contact Number is 09736276343Mobile
Contact Number is 09736276343Mobile