Importers, processors seek Rs 5,000-cr pulses upgradation fund

Processors and importers of pulses have urged the Union finance minister to set up a Pulses Upgradation Fund with an initial corpus of Rs 5,000 crore.

“The government set up a Rs 30,000-crore Technology Upgradation Fund Scheme to revive the ailing textile sector, which (then) saw a massive investment. Why not a similar fund for the pulses sector?” asked Pravin Dongre, president, India Pulses and Grains Merchants’ Association.

They complain small mills in the sector are gradually becoming unviable due to high processing cost and low prices. With modernisation in technology, mills’ efficiency will improve, helping to reduce the operating cost. Also, the cost of processing would be lower, benefiting consumers.

Of 19 million tonnes (mt) of annual production, chana (chickpea) contributes 50 per cent. Cheaper import has been a major threat for chana processing mills.

Of around 22.5 mt of annual pulses’ consumption, India imports around 3.5 mt. A decline in output is likely this year. “The time is right for the government to announce a much-needed relief to the pulses’ processing sector,” said Dongre.

The traders have also urged the government not to levy import duty. The ministry of commerce had earlier proposed a 10 per cent rate to protect the interest of local farmers. “As India is short on supply, levying of import duty will mean pulses’ prices will go up,” said Bimal Kothari, managing director of Pancham International, a city-based importer.