The government's canalising agencies -- State Trading Corp of India and MMTC Ltd. -- gained smartly in trade on Wednesday after the Cabinet approved a plan to reimburse these companies on losses incurred during the import of pulses between 2006-2011.
The Union Cabinet has approved the proposal to reimburse Rs 113.40 crore of losses on pulses imported between 2006-2011 by the National Agricultural Cooperative Marketing Federation, Project and Equipment Corporation, State Trading Corporation (STC) and Metals and Minerals Trading Corporation (MMTC), apart from losses incurred in the sale of pulses up to six months after closure of the scheme. This will allow public sector units to increase trading activities to cool down prices, a statement from the Cabinet said.
As a consequence, STC rose 1.85 rupees, or 1.2 percent, to 160.60 rupees and MMTC jumped 2 rupees, or 4.8 percent, to 42.70 rupees.
In order to ensure retail distribution to the consumers, MMTC will import 5000 tonnes of Tur Dal and 5000 tonnes of Urad Dal. The first consignment of imported Dal would be reaching Mumbai by 5 September 2015, the statement added.
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