Stock limit on sugar, pulses extended

PRICES of food items are unlikely to come down in a big way despite the government having extended the validity of control orders, which empowers states to fix stock limits on dals, edible oils, paddy, rice and sugar, feel commodity industry experts.      The Union Cabinet on Thursday gave its approval for extending the control orders issued by it under the Essential Commodities Act, 1955 on pulses, paddy, edible oilseeds and rice for a year to September 2010. It also facilitated the extension of stock limit orders by states on sugar for nine months till September next year.      The government's decision comes on the back of rising prices of these commodities and the unsatisfactory monsoon. The major objective of the extension, according to a ministry of consumer affairs press release, is to "moderate the prices of these commodities and ensure its (sic) availability at fair prices to the general public".      However, experts are sceptical about the efficacy of the EC Act alone in bringing down prices of essential items in the light of supply-side shortages. "The world is changing and in India the consumption and distribution patterns are changing," said Future Group CEO Kishore Biyani. "We have to take into account the new realities that are emerging and look at solutions accordingly," he added.      A commodity market veteran said state authorities were barking up the wrong tree in the case of certain commodities. "In some states, the authorities have raided futures market-accredited warehouses and sealed products that were delivered on the futures market platform, which is governed by a different central law and stipulates holding limits that are far in excess of those prescribed by the EC Act," he said.