The Centre has authorised Tamil Nadu to impose stock limits on tur dal and urad dal, granting the state government's request to curb hoarding and contain a sharp rise in pulse prices. The approval comes on 11 November 2026 as household budgets in the state face mounting pressure from food inflation running well above the national average.

The Price Pressure Behind the Move

Tamil Nadu recorded retail inflation of 6.81% in September, the highest among all Indian states, with food prices surging 10.62% during the same period, according to official figures. Pulses have been a particular flashpoint: the average retail price of tur dal in Tamil Nadu stood at ₹134.23 per kg in September, against a national average of ₹124.41 — a gap of nearly ₹9.82 per kg.

Prices have climbed further since. By October, tur dal was selling at ₹143 per kg and urad dal at ₹128 per kg. Current retail prices have risen to ₹153.43 and ₹139.67 per kg, respectively — a trajectory that prompted the state to seek urgent central intervention.

What the Stock Limits Prescribe

Under the approved restrictions, wholesalers may hold a maximum of 200 tonnes each of tur and urad dal. Retailers and large retail businesses are capped at 5 tonnes per pulse variety. The limits are designed to prevent excessive accumulation by traders, discourage artificial shortages, and ensure adequate market availability.

Separate provisions have been set for pulse mills: permissible stocks will be calculated as the previous three months' average processing capacity or 25% of annual processing capacity, whichever is higher. This formula aims to allow mills to maintain operational supplies without enabling speculative stockpiling.

Importers face an additional restriction: consignments of pulses brought into India cannot be held for more than 45 days after arrival. The rule is intended to accelerate the flow of imported supply into the retail market rather than allowing it to sit in warehouses.

What Was Sought and What Was Approved

Tamil Nadu had approached the Union Ministry of Consumer Affairs seeking stock limit authorisation on a broader basket — rice, edible oils, onions, and pulses. The Centre, however, has approved restrictions only for tur and urad dal.

Officials indicated that onion prices have been declining across Tamil Nadu and several other states, rendering restrictions on onion stocks unnecessary at this stage. Approval for stock limits on rice and edible oils has not yet been granted by the Centre. Notably, Tamil Nadu's food inflation at 10.62% in September significantly outpaced the national food price trend, underscoring the state's urgency.

Broader Context

Pulse price volatility is a recurring pressure point in India, particularly ahead of festival seasons and during delayed monsoons that affect domestic crop output. This is not the first time the Centre has invoked the Essential Commodities Act framework to authorise state-level stock limits as an anti-hoarding measure. The selective approval — covering pulses but not rice or oils — reflects a calibrated federal response, balancing state demands against central assessments of commodity-wise market conditions.

How effectively the new limits translate into price relief at the retail counter will depend heavily on enforcement capacity and market surveillance at the state level, with consumers in Tamil Nadu watching closely.