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Maharashtra Dal Millers seek GST exemption on unregistered Rice, Pulses

27 Jun 2022 3:23 pm
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Mumbai, 27 Jun (Commoditiescontrol): Maharashtra Dal Millers Association has requested Piyush Goyal, Minister of Textiles, Commerce and Industry and Consumer Affairs, Food and Public Distribution, Government of India, to exempt unregistered Rice and Pulses from goods and services tax (GST).

Levying GST on unregistered Rice and Pulses would result in increase of prices and push up inflation, which would directly affect the common man and farmers as well, the trade body underlined. Hence, it has requested the minister to exempt these commodities from the GST.

Interestingly, the demand comes at a time when prices have skyrocketed amid tight availability and ahead of Kharif sowing season that shows divergent trend.

Sowing of kharif crops as on June 24 stands at 14.1mn ha, which is 23.8% lower than last year’s acreage. Sowing of sugarcane crop is marginally higher than last year’s acreage (1.2% YoY). Lower sowing is led by rice (-46% YoY) and oilseeds (-47% YoY). Even sowing of coarse cereals, pulses and cotton is lagging behind. The delay in kharif sowing might affect the yields of certain crops and affect the total output.

South-west monsoon up to 26 June 2022 is now 7% below normal. Last week, it was only 5% below normal. Notably, rainfall activity had picked up pace last week when monsoon briefly reached normal level of rainfall. East and North-East continue to receive excess rainfall (21%).

Meanwhile, prices in major domestic markets have strengthened this morning as improved mills buying, limited stocks, slow imports and tentative rainfalls have fanned fears about pulses availability in the near future.

Prices of major pulses including Tur-Urad advanced at Mumbai/Delhi Markets, helped by improved buying by the mills, following firm cues from domestic markets.Fears of decline in pulses cultivation across the country is playing out positively on prices.

Apart from loss in acreage due to delayed monsoon another reason is the shift in acreage to other crops such as cotton and soybean due to better returns. Meanwhile, domestic arrivals remain thin as farmers are busy in kharif sowing.

M.P Masoor prices firmed up by Rs 25/100Kg in Delhi markets due to mills buying on immediate requirement for crushing. Andhra Pradesh Urad prices traded Rs 200 higher at Rs 8,000/100kg in Delhi markets on improved mill buying. Burma origin Lemon variety Tur crop 2022 priced Rs 100 higher at Rs 6,700/100kg in ready delivery.

Maharashtra origin old-new Tur quoted at Rs 6,550-6,750/100 kg, respectively for Delhi delivery. At Chennai, Burma Lemon Tur traded at Rs 6,350/100Kg.

If the trend continues, it will added pressure on government and market regulators, prompting a corrective measure which would be detrimental to markets. Hence, the demand is growing on reducing indirect taxes. Recently, the government allowed duty free imports of cotton, edible oil with a sole intention of arresting prices rise as well as inflationary pressure.

Such measures are employed across the globe, as the conflict between Russia and Ukraine has cut the supply sources of key commodities. Due to supply constraints, prices have surged to never seen in decades level. Given the dire consequences of high commodity prices, increased efforts are made by the government to control prices and tame inflationary pressure.

(By Commoditiescontrol Bureau: +91-22-40015505)


       
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