Karnataka govt fears hoarding as tur, vegetable oil price hit new highs

The Karnataka government has written to the Centre seeking to impose limits on the stocking of a few food commodities to prevent hoarding and artificial price rise.

The price of tur dal has gone up from Rs 95-105/kg in March to Rs 125-Rs 130 by the end of May. During the said period, vegetable oil prices have also increased. The price of sunflower oil per kilo went up from Rs 137 in December to Rs 162 by April. Some companies selling the oil in 5 litre cans have jacked up the price from Rs 680 in the beginning of the year to Rs 800.

Sources said that following a report by the food commissioner, the state government had last week written to the Centre, seeking approval for an order to check hoarding on the lines of rules issued in 2016.

As per the order, tur dal wholesale traders in city corporation limits within Karnataka are not allowed to stock more than 2000 quintals of pulses while the limit in other areas is 1000 quintals. For retailers, the limit is 50 quintals.

For vegetable oil, a similar order in 2017 fixed the stock limit at 1200 quintals in corporation limits and 1000 quintals in other places. The retailers could stock 100 quintals.

A senior official in the government said the state cannot on its own take decisions in the matter. “The state government has written to the Centre seeking its permission to impose limits. The price escalation is being monitored at 12 centres across the state. However, it is true that retail rates are going up every other day, making it difficult to provide accurate figures,” the government sources said.

Professor A V Manjunath from Institute of Social and Economic Change said the lockdown has added to the price rise. “The demand in the market has fallen but the manufacturing and other input cost has gone up considerably. Add to this, the spiralling fuel prices will further push the prices upwards,” he said.

Meanwhile, fuel prices in Bengaluru have gone up by Rs 10 in the last five months. The price of petrol has increased from Rs 87 in January to Rs 98.20 while the price of diesel went up from Rs 78.87 to Rs 91 per litre. This has in turn led to higher price of commodities.

Dealers said fuel prices will increase further in the coming days. “As the lockdown is lifted in other parts of the country and the world, the demand will go up which will, in turn, lead to higher crude prices. This is what we saw last year,” said Karnataka Petroleum Dealers Federation vice president Taranath