Tamil Nadu caps stocks of rice, paddy and pulses amid inflation spike

CHENNAI: Close on the heels of Tamil Nadu recording the country's highest retail inflation at 7.29% in October, the State government on Friday imposed stock limits on paddy, rice, and tur and urad dal to curb hoarding and check prices.

The move comes amid a steep rise in rice prices. Tamil Nadu's average retail price stood at Rs 61.66 per kg in September, against the national average of Rs 46.20. In Chennai, prices of popular varieties, including raw rice, boiled Ponni, and basmati, rose by 10% to 37% in October alone.

Tamil Nadu's October inflation was 1.20 percentage points above the national rate of 6.09%, which breached the RBI's 6% tolerance limit.

Under the orders issued by the Cooperation, Food and Consumer Protection Department, stock limits will remain in force until January 31, 2027, for paddy and rice, and for three months for tur and urad.

Wholesalers can stock up to 2,000 tonnes of paddy or rice, while retailers and large retail chains are allowed eight tonnes per outlet. Rice millers cannot hold stocks exceeding their one-month production capacity, while importers cannot retain imported stocks beyond 45 days from customs clearance.

For tur and urad, wholesalers can hold up to 200 tonnes of each variety and retailers five tonnes. Large retail chains can stock five tonnes of each variety per outlet and 200 tonnes per depot. Millers can hold either their previous three months' production or 25% of their annual installed capacity, whichever is higher.

All entities covered by the orders must declare and regularly update their stock positions on the Union Consumer Affairs Ministry's portal. Those holding stocks above the prescribed limits must bring them down by November 16.

The orders were issued under the Essential Commodities Act, 1955, with the Centre's concurrence