Pulses sowing rises sharply but price impact uncertain

Low stocks to neutralise benefit; impact might be seen around harvest time

Sowing of pulses in this kharif season so far has risen to nearly 5.6 million hectares, 134 per cent up from the corresponding period last year.

The price of pulses have risen 60 per cent in a year and there is speculation at the likely impact on this of more sowing. Chana (chickpea) and tur (pigeon pea) prices have risen a further four to five per cent in a month.



“The progress of sowing is good this year but we do not see much price impact in the near future as stocks are low. The impact will be seen around harvest time,” said Pravin Dongre, chairman of Indian Pulses and Grains Association.

According to the second advance estimates, output of pulses was 18.4 million tonnes(mt) in 2014-15, against 19.8 mt the previous year. India imports about four mt annually, largely by private trade. With a forecast of a weak monsoon, the government is concerned that prices might rise more.

Dongre said, “It is not the right time to predict the market scenario. A lot of factors need to be watched like yield, import by government and private parties, and production in exporting countries.”

Dongre said import might not fall, despite hope of higher production this season. “Consumption has been growing at a faster pace than production. Unless production jumps drastically, we do not see any decrease in import. In fact, to meet the nutritional requirement, India needs to import much more than the current four-five mt,” he said.

On why prices are higher despite report of higher sowing, he said, “Stocks of all pulses except yellow peas are lower this year vis-à-vis last year.”