Pulses imports set to RISE to 3-4 MT

India is likely to import 3-4 million tonnes (MT) of pulses with domestic production falling this year. The country has already imported 2 MT pulses.

“The government has decided to import more pulses due to shortage of the commodity. It is important to keep the price affordable,” an official of Ministry of Commerce and Industry told Business Standard.

India imports pulses mainly from the US, Canada, China, Myanmar, Australia and Ukraine. Pulses worth Rs 5,989.76 crore were imported during 2008-09 compared with Rs 5,374.94 crore in 2007-08 and Rs 3,891.90 crore in 2006-07.

As prices have been going up for a long time, importing more is the only option.

Tur and urad prices are currently high as the crop output is expected to be lower this year. Both were banned from futures trading three years ago. Increase in chana futures is less than 10 per cent this year as the supply situation is better.

“This year, we might have to import half-a-million tonne more than last year. We have also recommended provision of subsidy to the private sector to keep a check on prices,” said KC Bhartiya, president, Pulses Importers Association.

In a letter to the Department of Consumer Affairs under the Ministry of Consumer Affairs, Food and Public Distribution, the association had said that the country’s net import of pulses had gone up from 460,000 tonnes in 1998-99 to over 2 MT in 2008-09 and it was likely to increase if attention was not paid to increase production. Higher imports adversely affect the farmers of the country.

For the week ended November 21, food inflation surged to 17.47 per cent and while that of pulses rose to 37.83 per cent, according to figures released by the Ministry of Commerce and Industry.

While on one hand, the government had imposed a ban on exporting pulses, it reduced the import duty to zero till March 31, 2010. Production of pulses has declined to 14.66 MT during 2008-09, compared with 14.76 MT during 2007-08.

Recently, state-run agencies such as MMTC, PEC, STC and co-operative majors Nafed and NCCF have signed import deals with Canada and Myanmar. In 2006-07, irregularities to the tune of several crores of rupees in purchase of pulses by STC was observed. The case is currently being investigated by Central Bureau of Investigation.

According to Suresh Agarwal of Rika Global Impex, “State governments should take immediate action against hoarders.”

Exports of pulses to the main markets of Pakistan, UAE, Algeria and Sri Lanka dropped from Rs 526.14 crore in 2007-08 to Rs 540.23 crore in 2008-09.