New Delhi: The government has announced a significant simplification of the payment process for traders importing pulses from Myanmar. In a statement released on Saturday, the consumer affairs ministry said that importers will now be able to utilize the Rupee/Kyat direct payment system through a Special Rupee Vostro Account (SRVA) facilitated by Punjab National Bank.

India relies on importing pulses to address its domestic shortage, particularly tur and urad dals from Myanmar. The Consumer Affairs Secretary Nidhi Khare engaged in discussions with the Indian Mission in Yangon regarding matters concerning pulse imports from Myanmar. These discussions encompassed topics such as import prices following adjustments in exchange rates and the inventory maintained by importers in Myanmar. (Also Read: India’s Retail Inflation Hits 10-Month Low At 4.85% In March)

The ministry stated that the Indian Mission informed the secretary that starting from January 25 of this year, the Rupee/Kyat Settlement Mechanism has been put into operation. Its purpose is to streamline trade transactions and enhance their efficiency. (Also Read: TCS Sees Net Headcount Drop For First Time In 2 Decades)

On January 26, 2024, the Central Bank of Myanmar issued guidelines outlining payment procedures under SRVA. Moreover, the Indian Mission informed the secretary that this new mechanism will be applicable to both sea and border trade, covering both goods and services.

“Adoption of the mechanism by traders will reduce costs associated with currency conversions and eliminate complexities related to exchange rates by eliminating the need for multiple currency conversations,” the ministry statement said.

It said “dissemination about the operationalization of this mechanism among trading communities especially pulses importers is being separately done wherein they are being requested to utilize Rupee/ Kyat direct payment system using SRVA through Punjab National Bank.”

Meanwhile, the government has asked importers and other industry players like millers, stockists, retailers etc to honestly declare their stock of pulses, including imported yellow peas, on a weekly basis on portal https://fcainfoweb.nic.in/psp/ from April 15.

The ministry has also warned that anyone found to be indulging in forward trade of pulses would be dealt with firmly as per various provisions of Essential Commodities Act.

States and Union Territories have also been asked to enforce weekly stock disclosure by all stockholding entities and verify the stocks declared by them.

Stocks in warehouses located in major ports and in pulses industry hubs should be verified from time to time and strict action should be taken on stockholding entities found to be reporting false information on stock disclosure portal, the statement said. The feedback from the industry and inputs from market intelligence relating to the stock position with various market players have been collated for further verification, it added. (With PTI Inputs)