High pulses imports may continue even if output rises

India’s pulses imports may not decline despite an expected increase in production this year because of rising domestic demand, according to traders.

India, the world’s biggest consumer of pulses, imports 3-4 million tonnes on average every year. Production of pulses has remained stagnant at 13-14 million tonnes over the past few years, while demand hovered at 18-19 million tonnes.

“Although there may be some increase in production, (it) may not meet the country’s entire demand, which is growing at a faster rate. So, the gap need to be met through imports only,” Pulses Importers Association K C Bhartiya said.

Overall, imports of pulses in the 2010-11 fiscal would remain at last year’s level of 3.5 million tonnes and there may not be any decline, he said, adding that dollar depreciation plus the higher MSP for pulses may augment imports.

According to government estimates, pulses production during the kharif season (June-September) is pegged higher at 6 million tonnes as against 4.30 million tonnes in the year-ago period.

However, the industry estimates that kharif pulses output may increase by only one million tonnes.

To step up domestic supply of pulses, the government is also encouraging the import of pulses by reimbursing PSUs for losses up to 15 per cent of the landed cost and service charge of 1.2 per cent of the cost, insurance and freight (CIF) value.

Experts attributed the rise in the area under pulses cultivation to higher realisation achieved by farmers during 2009-10. A sharp increase in the support price has also encouraged farmers to sow more pulses, as the production deficit in the country amounts to about 4 million tonnes.