{"id":892,"date":"2019-10-11T17:35:04","date_gmt":"2019-10-11T12:05:04","guid":{"rendered":"https:\/\/www.grainmart.in\/news\/?p=892"},"modified":"2019-10-11T17:39:19","modified_gmt":"2019-10-11T12:09:19","slug":"karnataka-small-dal-mills-shut-due-to-losses","status":"publish","type":"post","link":"https:\/\/www.grainmart.in\/news\/karnataka-small-dal-mills-shut-due-to-losses\/","title":{"rendered":"Karnataka Small Dal Mills Shut due to Losses"},"content":{"rendered":"\n<p>Karnataka, also known as the \u2018dal bowl\u2019 of India, faced a major blow due to prevailing low prices. Many small dal mills in Karnataka shut due to losses. It is a matter of concern for the Karnataka government to curtail this situation.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Government Intervention<\/strong><\/h5>\n\n\n\n<p>Few years back prices of pulses skyrocketed and ever since government intervened in the industry. Sowing of pulses <a href=\"https:\/\/www.grainmart.in\/news\/haryana-government-to-farmers-grow-pulses-and-maize-instead-of-paddy\/\">increased throughout Indi<\/a>a which led to continuous fall in prices this year. The Central government intervened and purchased Dal directly from farmers at the <a href=\"https:\/\/pib.gov.in\/newsite\/PrintRelease.aspx?relid=191129\">minimum support price<\/a> (MSP). <\/p>\n\n\n\n<p>The Government sold dal under Public Distribution System at Rs 35 per kg in the open market. <a href=\"http:\/\/agricoop.nic.in\/sites\/default\/files\/Pulses-profie-for-the-month-April-2019.pdf\">Bringing down prices<\/a> heavily in Karnataka. Government intervention in any industry decreases profits significantly. Small Dal mills are unable to offer high rates to farmers thereby, unable to compete with government. <\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Pulses Import Regulation<\/h5>\n\n\n\n<p>On 1st April 2019, Government <a href=\"https:\/\/dgft.gov.in\/sites\/default\/files\/Trade%20Notice%20No.52.pdf\">issued notice<\/a> to restrict import of peas and pulses. They further restricted import of moong dal to 1.5 lakh tons for fiscal year. Further, import of Tur Dal quota <a href=\"https:\/\/dgft.gov.in\/sites\/default\/files\/Trade%20Notice%20No.52.pdf\">restricted to 2 lakh tons<\/a>. Government regulation of import was necessary to curtail the falling prices of pulses in India. <\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Districts Under Stress<\/strong><\/h5>\n\n\n\n<p>Currently, only 60 dal mills are operational out of the 400 mills in  Kalaburagi and Yadgir districts. Due to this shutdown major unemployment issues have prevailed in the districts. Dal Mill owners revealed that it is not feasible to sell dal at such a <a href=\"https:\/\/www.grainmart.in\/news\/price-update-pulses-prices-in-india-as-on-22-07-2019\/\">low prices<\/a> due to high cost of processing.  <\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Reasons for Shutdown<\/h5>\n\n\n\n<p>Amarnath Patil, president of Karnataka Chamber of Commerce and Industry stated that long term affect of demonetization has further bought down the performance of dal mills. National Agriculture Cooperative Marketing Federation of India stated reasons for shutdown as high price volatility in dal market. <\/p>\n\n\n\n<p>Hence, the government\u2019s action to stabilize prices of dal is successful but at the same time has impaired the dal mills.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small dal mills in Karnataka shut down due to losses. Further discuss Government Intervention, Pulses Import Regulation, MSP on Pulses<\/p>\n","protected":false},"author":7,"featured_media":207,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[2269,2258,2264,2263,104,2260,2262,2265,206,2268,2259,265,58,2267,2270,52,2261,101,2266],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Karnataka Small Dal Mills Shut due to Losses - Grainmart News<\/title>\n<meta name=\"description\" content=\"Small dal mills in Karnataka shut down due to losses. 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