Pulses price have been on an all time high in the nation. Government officials believe that this crisis is created using pseudo supply demand gap. The gap is created by stocking up pulses and raising prices in the market. To catch hold of sellers making a killer profit out of this situation, the tax authorities are conducting raids. Initial raids were conducted in Mumbai Delhi and Madhya Pradesh.
Traders from Delhi confirm that raids were held but official statement is yet to be issued. The government is also planning to impose stock limit on pulses like chana and sugar to contain rising prices. The traders point that the two failed monsoons are the reason for rising prices of pulses. According to government data the production of pulses fell by 20.05 million ton, a 16 percent decrease per ton. The price rise in Mumbai was 5.5percent per kg. In the future the prices of chana are expected to rise by 25 percent. The government is particularly scrutinizing the agricultural sector over possible tax evasion. Though agricultural income itself is not taxable but people using this channel to evade taxes is possible.
A recent RTI revealed that trillions of money being declared as agricultural income despite the fact failing crops for the past 2 years. 90 percent of the farms are cultivated by marginal farmers who do not even file their income.
The government has launched investigation into 2,500 cases where the income through agriculture was declared more than 1 crore.