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Record yield has pulses prices slide below MSP

Trade wants stock limits lifted as prices of most varieties trading below MSP

Rajesh Bhayani  |  Mumbai 

Farmers grow pulses at record high at their own peril

After seeing a crisis in last year, when prices skyrocketed, Indian have produced record high of 22.14 million tonnes this season but all at their own peril. Prices of moong, tur, arhar, lentils are trading below their minimum support prices (MSP) in many producing centers in the country, according to data from Agmark.

Market intervention agencies are also not able to buy at and those who can buy are facing storage issues. The had set a target to build a buffer of 2 million tonnes of which not even half has been achieved. The is higher by 35 per cent or 5.79 million tonnes than last year when imports also were around 6 million tonnes, much higher than usual 3-4 million tonnes. Traders and importers are clamouring for removing stock limits and allowing exports.

Ajay Vir Jakhar, chairman, Bharat Krishak Samaj said: "While the is at a record high, are not getting the minimum support price promised by the The should meet its promise of ensuring get the promised

He suggested an action plan for the Firstly, to follow Niti Ayog's proposal of price deficiency system where Ramesh Chand, member agriculture of the Ayog has said that wherever could not reach for logistical issues for procuring commodity at MSP, the should pay the loss they incur by selling at prevailing lower prices if can produce proof of loss. 

Secondly, he said to increase price stabilisation fund size from Rs 500 crore to Rs 5,000 crore. 

"Thirdly, when prices rise and get better realisation, the promotes imports and later doesn't procure at from when prices fall. This amounts to subsidizing in other countries and hence should give up promoting imports of agriculture production."

Problem arises when the machinery is neither able to buy at nor allows traders with funds to store more and hence who grew record are suffering. 

However, importers say import contracted in past continues but many importers are losing money and there are cases of defaults in imports also, according to trade sources. Compared to last year's around 6 million tonnes, importers estimate 4-5 million tonnes of imports in the current year.

According to the second advance estimate of the ministry of agriculture released yesterday, total production of during 2016-17 is estimated at 22.14 million tonnes which is higher by 5.79 million tonnes from the previous year's production of 16.35 million tonnes. Chana prices at present are at comfortable levels from farmers' point of view but with the arrivals rising, returns will only fall.

Bimal Kothari, vice-chairman of India and Grain Merchants Association (IPGA), an apex trade body, and managing director of importing firm Pancham International said, "We have written to the that this is the right time to lift stock limits on and allow its exports." 

The suggestion makes sense as the is not able to ensure to farmers', thus not allowing trade to store more which helps get a better price. He also proposed that must make efforts to help increase productivity of which is lowest among major producers. India on an average produces 800 kg in one-hectare land while the world average is 3 tonnes.

Kothari said that "must be finding it difficult to buy at from all mandis and hence when traders are not allowed to stock more, next season will again reduce sowing and the cycle of deficiency will be repeated."
 

Pulses, graph
graph

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Record yield has pulses prices slide below MSP

Trade wants stock limits lifted as prices of most varieties trading below MSP

Trade wants stock limits lifted as prices of most varieties trading below MSP
After seeing a crisis in last year, when prices skyrocketed, Indian have produced record high of 22.14 million tonnes this season but all at their own peril. Prices of moong, tur, arhar, lentils are trading below their minimum support prices (MSP) in many producing centers in the country, according to data from Agmark.

Market intervention agencies are also not able to buy at and those who can buy are facing storage issues. The had set a target to build a buffer of 2 million tonnes of which not even half has been achieved. The is higher by 35 per cent or 5.79 million tonnes than last year when imports also were around 6 million tonnes, much higher than usual 3-4 million tonnes. Traders and importers are clamouring for removing stock limits and allowing exports.

Ajay Vir Jakhar, chairman, Bharat Krishak Samaj said: "While the is at a record high, are not getting the minimum support price promised by the The should meet its promise of ensuring get the promised

He suggested an action plan for the Firstly, to follow Niti Ayog's proposal of price deficiency system where Ramesh Chand, member agriculture of the Ayog has said that wherever could not reach for logistical issues for procuring commodity at MSP, the should pay the loss they incur by selling at prevailing lower prices if can produce proof of loss. 

Secondly, he said to increase price stabilisation fund size from Rs 500 crore to Rs 5,000 crore. 

"Thirdly, when prices rise and get better realisation, the promotes imports and later doesn't procure at from when prices fall. This amounts to subsidizing in other countries and hence should give up promoting imports of agriculture production."

Problem arises when the machinery is neither able to buy at nor allows traders with funds to store more and hence who grew record are suffering. 

However, importers say import contracted in past continues but many importers are losing money and there are cases of defaults in imports also, according to trade sources. Compared to last year's around 6 million tonnes, importers estimate 4-5 million tonnes of imports in the current year.

According to the second advance estimate of the ministry of agriculture released yesterday, total production of during 2016-17 is estimated at 22.14 million tonnes which is higher by 5.79 million tonnes from the previous year's production of 16.35 million tonnes. Chana prices at present are at comfortable levels from farmers' point of view but with the arrivals rising, returns will only fall.

Bimal Kothari, vice-chairman of India and Grain Merchants Association (IPGA), an apex trade body, and managing director of importing firm Pancham International said, "We have written to the that this is the right time to lift stock limits on and allow its exports." 

The suggestion makes sense as the is not able to ensure to farmers', thus not allowing trade to store more which helps get a better price. He also proposed that must make efforts to help increase productivity of which is lowest among major producers. India on an average produces 800 kg in one-hectare land while the world average is 3 tonnes.

Kothari said that "must be finding it difficult to buy at from all mandis and hence when traders are not allowed to stock more, next season will again reduce sowing and the cycle of deficiency will be repeated."
 

Pulses, graph
graph

image
Business Standard
177 22

Record yield has pulses prices slide below MSP

Trade wants stock limits lifted as prices of most varieties trading below MSP

After seeing a crisis in last year, when prices skyrocketed, Indian have produced record high of 22.14 million tonnes this season but all at their own peril. Prices of moong, tur, arhar, lentils are trading below their minimum support prices (MSP) in many producing centers in the country, according to data from Agmark.

Market intervention agencies are also not able to buy at and those who can buy are facing storage issues. The had set a target to build a buffer of 2 million tonnes of which not even half has been achieved. The is higher by 35 per cent or 5.79 million tonnes than last year when imports also were around 6 million tonnes, much higher than usual 3-4 million tonnes. Traders and importers are clamouring for removing stock limits and allowing exports.

Ajay Vir Jakhar, chairman, Bharat Krishak Samaj said: "While the is at a record high, are not getting the minimum support price promised by the The should meet its promise of ensuring get the promised

He suggested an action plan for the Firstly, to follow Niti Ayog's proposal of price deficiency system where Ramesh Chand, member agriculture of the Ayog has said that wherever could not reach for logistical issues for procuring commodity at MSP, the should pay the loss they incur by selling at prevailing lower prices if can produce proof of loss. 

Secondly, he said to increase price stabilisation fund size from Rs 500 crore to Rs 5,000 crore. 

"Thirdly, when prices rise and get better realisation, the promotes imports and later doesn't procure at from when prices fall. This amounts to subsidizing in other countries and hence should give up promoting imports of agriculture production."

Problem arises when the machinery is neither able to buy at nor allows traders with funds to store more and hence who grew record are suffering. 

However, importers say import contracted in past continues but many importers are losing money and there are cases of defaults in imports also, according to trade sources. Compared to last year's around 6 million tonnes, importers estimate 4-5 million tonnes of imports in the current year.

According to the second advance estimate of the ministry of agriculture released yesterday, total production of during 2016-17 is estimated at 22.14 million tonnes which is higher by 5.79 million tonnes from the previous year's production of 16.35 million tonnes. Chana prices at present are at comfortable levels from farmers' point of view but with the arrivals rising, returns will only fall.

Bimal Kothari, vice-chairman of India and Grain Merchants Association (IPGA), an apex trade body, and managing director of importing firm Pancham International said, "We have written to the that this is the right time to lift stock limits on and allow its exports." 

The suggestion makes sense as the is not able to ensure to farmers', thus not allowing trade to store more which helps get a better price. He also proposed that must make efforts to help increase productivity of which is lowest among major producers. India on an average produces 800 kg in one-hectare land while the world average is 3 tonnes.

Kothari said that "must be finding it difficult to buy at from all mandis and hence when traders are not allowed to stock more, next season will again reduce sowing and the cycle of deficiency will be repeated."
 

Pulses, graph
graph

image
Business Standard
177 22