Pvt firms seek subsidy on pulses imports

Raising concern over the rising international prices, private pulses traders have once again asked the government to provide them subsidy on pulses imports as accorded to state agencies.

The state agencies currently enjoy a 15 per cent subsidy on imports of pulses.

The state agencies have been set a target to import 15 lakh tonne of pulses this year. The government had earlier this year rejected the demand of a subsidy for private traders to import pulses.

Soaring international prices have led to private traders hesitating to go in for imports.

"The government's announcement to import a large bulk of pulses has led to a rise in global prices. At these rates, we cannot go in for booking orders. They are too high," said S P Goenka, a Mumbai-based pulses importer.

The international prices are, currently, ruling substantially higher than what they were six months ago. 
 

A LOSING CASE Prevailing import rates
Commodity	Rates in  $ per tonne
Yellow Peas	370-380
Green Peas	355-370
Moong (average)	630-700
Tur	550-580
Urad	610-700

For instance, rates of yellow peas are at $370-380 a tonne, whereas those of tur have gone up to $580-590 a tonne. Moong, urad and green peas are also in the same high range.

"The government is only floating tenders. Where is the real booking of orders," asked K C Bhartiya, president of the Pulses Importers' Association. He further added that the state agencies should be accountable and apprise the government about the developments taking place in booking orders.

Interestingly, in the recent past, many tenders have been cancelled, disappointing the market. Commodity analysts doubt if 15 lakh tonnes of pulses will be imported this year. They said that imports could be in the range of 10 to 12 lakh tonnes.

The government's decision to import pulses was good for the country, but they should be made available in the market, which, at present, was not happening, said Bhartiya. "This shows the inefficiency of the state agencies," he added.

Amidst an appreciating rupee, sources said that middlemen would be the main beneficiaries. They added that a clear picture of the imports would emerge within the next three months.

Meanwhile, the domestic pulses market is firm.

Sources believe that once the monsoon gets off in full swing, rising demand could further stoke the market with a bullish sentiment.