Pulse prices hit the roof as imports fall short of target

Agencies Import 10 Lakh Tonne Against 15 Lakh Tonne

    INDIA’S pulse imports on government account is at least 30% short of the target in FY09, which traders say is a major factor for the current spiral in domestic prices.
    As the country needs to import about 30 lakh tonnes of pulses in a year to meet domestic demand, the government had set a target (for itself) of importing half of these in 2008-09. However, according to the latest official data, public sector trading firms — STC, MMTC and PEC — and agri co-operative Nafed contracted to import 10.3 lakh tonnes of pulses in 2008-09. These firms were asked by the government to import 15 lakh tonnes of pulses in 2007-08 also, out of which they had actually contracted for 13.51 lakh tonnes. The centre has been importing pulses through these PSUs and if they incur any loss in the process the government reimburse them.
    Traders and officials said the lower import was due to nonparity in domestic and global prices. “When the global prices were higher than domestic prices, it adversely impact on imports,” said KC Bhartiya, president, Pulses Importers Association of India. In 2008-09, the actual arrival of pulses was even lower at 8.1 lakh tonnes. Interestingly, these firms have disposed off 3.8 lakh tonnes of the imported pulses, which is less than 50% of the arrival.
    “Only PEC and STC have imported pigeon peas (tur) to the tune of about 85,000 tonnes in the entire year, while the other two agencies have not contracted any quantity,” a Delhi-based importer said. In 2007-08, these PSUs had imported about 1.3 lakh tonnes of tur, he added.
    Retail prices of tur have gone
up to Rs 58-60 a kg from Rs 50-52 per kg in the national capital in the past fortnight.
    Other pulses are also ruling high. Red lentil attracts Rs 54 a kg, green gram (moong) dal Rs 52-56 a kg, rajma (chitra) Rs 42 a kg, rajma (black) Rs 52 a kg, green peas Rs 35 per kg, kabuli chana Rs 42-46 a kg, chana dal Rs 32-34 per kg, yellow peas Rs 24 a kg and processed black matpe (urad) Rs 50-52 a kg.
    Lower production of tur in the country is also a factor in the rise in its price, the importer said.
    According to the agriculture ministry, tur production is estimated at 24.7 lakh tonnes in 2008-09, as against 30.8 lakh tonnes in the previous year. Both chana and tur production in the country have been affected, traders claimed. “It is actually lower than the government estimates,” an official with a trading firm said. Mr Bhartiya said India imports tur mainly from Myanmar, where the crop has been damaged leading to the price rise. One PSU is reported to have recently contracted tur at $700 a tonne from Myanmar, as against $425 in February this year. Some traders also said there is a spurt in global prices of pulses after government announcement of importing 15 lakh tonnes in 2009-10 financial year.
    Meanwhile, PEC had contracted to import 3.1 lakh tonnes of pulses, including 1.4 lakh tonnes of yellow peas (white matar) and 68,640 tonnes of tur in 2008-09. Out of these, 1.1 lakh tonnes have already been sold in the domestic market. STC had sold 1.7 lakh tonnes out of 3.1 lakh tonnes contracted. MMTC had contracted 1.9 lakh tonnes and sold 33,074 tonnes.