Following India Today's expose on hoarding of pulses by satta operators, the Income Tax Department today conducted a series of raids in Delhi and Mumbai, in a bid to curb satta operations in the country.

Over a dozen teams of Income Tax officials have been deployed in multiple locations across Delhi, and searches are on since morning. 12 entities have been raided in Mumbai since morning.

Income Tax department sources told India Today that the raids in Mumbai are much bigger than the raids conducted in Delhi. Moong and chana dal were to be targeted next by satta operators, sources revealed.

Sources told India Today that the Narendra Modi government is committed to clamping down on illegal manipulation of dal prices. Ministry of consumer affairs and food ministry are working on a comprehensive plan to ensure that no manipulation can take place.

MODUS OPERANDI

According to the India Today investigation, the satta traders first identify how each crop is faring, especially the one that is likely to fare poorly that year. Once the crop, called the loose point, is identified, the operators form a cartel and devise a joint strategy to artificially inflate its prices. The cartel then sends procurement agents to Myanmar and Africa (explained in the photo gallery). Large importers in these countries then purchase the food crop from all major suppliers in India. To further suck the supplies out of Indian market, the large operators also buy out crops procured by smaller importers at a premium.

Importers take delivery of the imported crop and hoard it at foreign ports. Then the freight ships are ordered to deliberately slow down and delay their journey toward India.

Meanwhile, the shortage of food production creates a scarcity in the domestic market of India. The demand is massive, but the supply meagre. The prices then start to skyrocket. This is when mill owners are forced to purchase dal from importers at hugely inflated prices. The importers recover their money, but the mill owners then spike the rates further before making the pulses available in wholesale markets.

The small retailers then add their own premium to the inflated prices making dal unaffordable to consumers.

October this year. In September, the food inflation jumped to 5.25 per cent from 3.88 per cent, whereas the overall retail inflation as measured by consumer price index (CPI) clawed up to 5 percent. This year, the food inflation was the lowest in July 2.15 per cent and August 2.12, and was the highest at 6.79 in February.

In India, four states - namely Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh - produce nearly 70 per cent of India's total pulses output, according to a Crisil report. Pulses contribute only 6 percent of food inflation, while cereals constitute 25 per cent.

The recent rise in the prices of dal is the sharpest in a decade. Tur and moong, that are widely used in Indian kitchens, are particularly more expensive. Of the two, the rise in tur dal prices is the highest at least since January 2010. Tur prices shot up 104 per cent this month. Urad dal prices soared by 88 per cent this month. All the above data has been provided by the consumer affairs ministry.

Also Read



The great Indian Dal scam revealed

Dal mafia exposed: Why the price of pulses skyrocketed



