India puts curbs on pigeon peas import to support local prices

MUMBAI (Reuters) - India has put a cap on imports of pigeon peas at 200,000 tonnes, the government said in a notification on Saturday, as the price of the lentil plunged more than 60 percent due to record production.

The restriction will help support local prices of pigeon peas in the world's biggest importer of the lentils, but will put pressure on producers such as Myanmar, Tanzania, Mozambique and Malawi which rely on exports to India.

In the fiscal year running from April to March traders can import no more than 200,000 tonnes, the government said.

India had imported 703,540 tonnes pigeon peas, also known as arhar or tur locally, in 2016/17 fiscal year ended on March 31.

"After the bumper production, restriction on the imports was necessary to support local prices. The government should now allow export of lentils as well," said Pravin Dongre, chairman of the India Pulses and Grains Association.

India's pigeon peas production jumped 80 percent to 4.6 million tonnes in 2016/17.

"In the current fiscal year traders have so far imported more than 160,000 tonnes of pigeon peas. In August 40,000 tonnes is likely to land in the country. So there is no scope for new import contracts," said a Mumbai-based importer who declined to be identified.

(Reporting by Rajendra Jadhav; editing by Jason Neely)