Hoarding of pulses causes prices to almost double in two weeks

The price rise comes in the immediate aftermath of the passage of the farm reform bills, which among other measures deregulate the trade in pulses

When Meenakshi from Banashankari went grocery shopping a few days ago, she was shocked to see that the price of tur dal had almost doubled in a little over a fortnight. Other pulses too had become more expensive.

While excessive rainfall has had a role to play, industry insiders attribute the trend largely to the hoarding of pulses by ‘big players’. It has created an artificial scarcity in the market, which in turn, has resulted in a rally in prices over the last two weeks.

For instance, tur dal that was trading in the range of ₹70-₹90 per kg two weeks ago, but was being quoted from ₹100-₹140 in the wholesale market on Wednesday. The prices of other pulses have also shot up.

This price rise comes in the immediate aftermath of the recent farm reform bills, which among other measures deregulated trade in pulses. The Essential Commodities (Amendment) Bill, 2020 recently passed by Parliament and made into law, removed pulses, cereals and oil seeds from the list of essential commodities.

“Big players have definitely resorted to hoarding over the last few weeks. However, unlike before, now that it is no longer an essential commodity, the government cannot check for stocks or intervene. The prices of pulses, cereals and oil seeds will henceforth be prone to such artificial rallies,” said Ramesh Chandra Lahoti, chairman, APMC Committee, Federation of Karnataka Chamber of Commerce and Industry.

At a recent meeting of stakeholders, including mill owners, farmers and government officers in Kalaburagi, which is the biggest contributor of red gram in Karnataka, it emerged that an artificial scarcity in the market was the primary reason for the rally in prices.

Rithendra Sugoor, Joint Director of Agriculture, added that a premature assumption that this season’s harvest will be low had ‘prompted traders to keep the crop with them for better price’.

Dr. T.N. Prakash Kammardi, former chairman of Agriculture Price Commission, said that this artificial rise in prices has proved their argument against the recent farm reform bills. “The government should not give up control over agriculture commodity marketing. The present system, as is being shown, neither helps farmers nor consumers, but only big corporates,” he alleged.


Farmers had sold red gram, from which tur dal is processed, at a low price of ₹6,100 per quintal earlier this year.

What has aggravated the situation is crop loss due to excessive rains in parts of the State in August-September.

“Of the 5.5 lakh hectares that had tur sown in Kalaburagi, crop on over 1 lakh hectares has been completely damaged,” said Mr. Sugoor. However, he hoped the yield in the rest of the area would be good.

Excessive rain damages onion crop

Excessive rains in parts of the State in August and September led to large-scale crop damage that has now caused a severe shortage of onions, driving its price northwards.

“The supply of onions has dropped to unprecedented levels. Crop loss was reported from almost all onion growing regions of the State starting from Sira, Molakalmuru, Hubballi to Belagavi. What has worsened the situation is a similar crop loss in Maharashtra and Telangana as well,” said Ravi Kumar of Bangalore Onion and Potato Traders’ Association.

Onions are currently being traded at ₹40 a kilo in the wholesale market, which has already pushed the retail price to above ₹50 level, sometimes even being sold at ₹60 a kilo. However, despite paying a steep price, the quality of onions is poor.

“Waterlogging and increased soil moisture have damaged the crop hugely,” Mr. Ravi Kumar said.

All hopes are pinned on the next harvest from Rajasthan, which is expected to reach the market in November-December. If that fails, it will create a long period of acute shortage till the next harvest in February, warn traders.

“If the Rajasthan crop is not adequate, we may see onion prices easily cross the ₹120 level, but then too, the quality may be very bad,” Mr. Kumar said.

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Sagar Biswas

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