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Context
- Traders importing pulses from Myanmar now utilize Rupee/Kyat direct payment system through Punjab National Bank's Special Rupee Vostro Account (SRVA), as announced by the consumer affairs ministry.
Dependency on Pulse Imports:
- India relies on imports, particularly tur and urad dals, from Myanmar to address domestic shortages of pulses.
Operationalization of Rupee/Kyat Settlement Mechanism:
Discussion with Indian Mission in Yangon:
- Consumer Affairs Secretary Nidhi Khare engaged with the Indian Mission in Yangon to address issues related to pulses imports, including import prices and stocks held by importers in Myanmar.
Effective from January 25, 2024:
- The Rupee/Kyat Settlement Mechanism has been operational since January 25, 2024, simplifying trade transactions and enhancing efficiency.
Guidelines by Central Bank of Myanmar:
- The Central Bank of Myanmar issued guidelines for payment procedures under Special Rupee Vostro Account (SRVA) on January 26, 2024.
READ ALL ABOUT SRVA: HTTPS://WWW.IASGYAN.IN/DAILY-CURRENT-AFFAIRS/VOSTRO-ACCOUNT-4
READ ALL ABOUT NOSTRO: https://www.iasgyan.in/page_not_found#:~:text=What%20is%20a%20Nostro%20account,branches%20in%20a%20foreign%20country
Applicability of the Mechanism:
- The new payment mechanism applies to both sea and border trade, covering trade in goods and service
Benefits of Adoption:
- Adoption of the mechanism by traders reduces costs associated with currency conversions and streamlines exchange rate complexities.
Dissemination of Information:
- Traders, particularly pulses importers, are being encouraged to utilize the Rupee/Kyat direct payment system using SRVA through Punjab National Bank.
Weekly Stock Disclosure and Enforcement Measures:
- Importers, millers, stockists, and retailers are required to honestly declare their pulse stocks, including imported yellow peas, weekly on the designated portal (https://fcainfoweb.nic.in/psp/) from April 15.
Warning against Forward Trade:
- The government warns against engaging in forward trade of pulses, with firm actions stipulated under the Essential Commodities Act for violators.
Enforcement by States and Union Territories:
- States and Union Territories are tasked with enforcing weekly stock disclosure by all stockholding entities and verifying the accuracy of declared stocks.
Verification of Stocks:
- Verification of stocks in warehouses at major ports and pulses industry hubs is mandated, with stringent actions against entities providing false information on the stock disclosure portal.
Industry Feedback and Market Intelligence:
- Feedback from the industry and market intelligence regarding the stock positions of various market players is being collated for further verification and enforcement.
- The government's initiatives aim to streamline pulse imports, enhance transparency, and curb malpractices in the pulse industry, ensuring a more efficient and accountable trade ecosystem.
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PRACTICE QUESTION
Q. How does India's reliance on imports affect its economy and security? Discuss the challenges posed by this dependence and suggest strategies to boost domestic production and reduce reliance on imports.
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SOURCE: THE HINDU
