India to provide incentives for chickpea exports

MUMBAI (Reuters) - India will offer incentives for chickpea exports for three months, the government said on Thursday, as prices have plunged in the past six months on expectations of a record production this year.

Exporters will get a 7 percent incentive of the value of the shipment, the government said in its order.

Chickpea prices have fallen 38 percent in the past six months to a three-year low in the world's biggest producer and consumer of the pulse, also known as chana.

On Thursday, chickpea futures provisionally closed at 3,673 rupees ($56.42) per 100 kg, compared with the government-fixed support price of 4,400 rupees.

 

India's chickpea production is likely to jump 18.3 percent to a record 11.1 million tonnes in 2017/18.

The country, which imports chickpeas from Australia, Russia and Tanzania, recently raised the import tax on the pulse to 60 percent to protect local farmers.

($1 = 65.1000 Indian rupees

(Reporting by Rajendra Jadhav; Editing by Subhranshu Sahu)