Worried about a further spike in prices of pulses in coming months, the Centre today asked state governments not to levy local taxes like VAT and mandi fees on dals, besides taking stern action against hoarders to boost supply and bring down rates.
While briefing the media after a meeting of State Food Minister to draw an action plan to check prices of essentials, such as pulses, edible oil and sugar, Food Minister Ram Vilas Paswan said “We have requested states to exempt pulses from VAT and other local taxes in the lean period.
It may help cool the prices of the pulses by 5-7 per cent, therefore, there is a need that all States and Union Territories impose and implement stock limits, which should follow a logical and scientific formula separately in consuming States and surplus States."
The government is seriously considering hiring a private agency to forecast production, demand and price rise to enable it to make timely policy interventions. Apart from local tax exemption, Paswan asked the state governments to establish their own Price Stabilisation Fund that can be utilised to check prices of pulses and other essential items.