Keep Pulses Out Of Commodity Act

BS: What is the present status of the pulses market in the domestic as well as the international market ?

K C Bhartiya: In the domestic market the present scenario is good with the pulses production estimated at 15.5 million tonnes. The demand for pulses is estimated at about 16.5 million tonnes.

The untimely rains during the first half of December have damaged the crops due to which the net gap between the demand and supply is expected to increase 1 million tonnes.

There has been resoiling in certain areas which may help cover the gap but in any case the harvesting period will get delayed and therefore the time gap will remain.

The scene for the international market is that there is continuous supply from origins into the Indian market.

The recent spurt in demand of the Indian market demand has benefited the overseas market. Prices of imported pulses in the international market has gone up by 10 per cent in the last 2 months.

BS: How do you see the effect of the present devaluation of Indian rupee on the domestic pulses market. Will the growers be benefit by it ?

KCB: The Indian market has substantially absorbed the effect of devaluation and the hike in the prices accordingly, the market price has gone up by about 15 to 18 per cent in the last quarter.

This rise will definitely benefit all Indian growers because they will get better price of the crop and I also feel that the recent sowing will be much higher in terms of area of cultivation.

BS: What is the government's policy vis-a-vis pulses import and exports?

KCB: The association is thankful to the government for permitting export of pulses without any licence.

These exports are made at an average of about 25 to 35 per cent value, thus resulting into net foreign exchange earning. We nevertheless, await the additional attention and quick decision of the government on the following:

Removal of basic import custom duty of 5 per cent and corresponding exemption from the 5 per cent special duty imposed recently on all dutiable items.

Removal of pulses from the draconian Essential Commodity Act.

The association has pleaded with the government that the objective and purpose of the act has already been diluted by permitting free import of pulses Open General Licence and therefore, to include pulses in the Essential Commodity Act is a hindrance in ensuring smooth and continuous supply to the market. Also exemption from the scope of Maharashtra Agri-cultural Produce Market Comm-ittee (MAPMC) for imported pulses and the cess required thereon.

Actually Maharashtra Agricultural Produce Market Committee is a local body which renders services and create infrastructure to ensure smooth distribution of Indian produce which benefits the farmers.

As the Maharashtra Agricultural Produce Market Committee does not render any trade related activities for imported pulses in specific, they should not charge any cess as marketing arrangements of imported pulses are made by the importers themselves.

BS: What is the present price trend of pulses in the domestic market and how do you see the emerging trends in the coming days?

KCB: We see that the pulses market will maintain its level in the coming season as there is adequate demand and supply.

With the help of better infrastructural facility in specially at the port, we feel that the cost of handling the imported pulses could reduce in the coming days, which would correspondingly lower the cost and benefit the common man.

As for the export of pulses, the average yearly export for last 3 years is 40,000/45,000 mt.