Ban on export of pulses clogs ports

Ban on export of pulses has stranded 200-odd containers loaded with pulses at Kandla and other ports in the Saurashtra Kutch region.

"Apart from Kandla and other ports of Gujarat, more are feared stranded at other ports in the country," said Dinesh Kanani of Goldcoin International Trade Link, an international commodity broking firm.

The ban imposed by the government has affected exporters, clearing houses, and port agents engaged in the trade, as also international trade and affiliated business channels.

Even farmers have not been spared its impact. The business of international commodity broking firms, carrying handling agents, and logistics companies, has been marginally affected.

The government had announced a ban on export of pulses and cereals to check the inflation in prices of essential commodities.

Shipments of processed pulses, mainly consisting of masur dal, white pea (kabuli chana), black mat pea (urad dal), and rajma were sent out from the ports to the world markets, after being procured from Maharashtra and Madhya Pradesh, said Kanani.

Business of at least 10,000 mt of pulses and cereals exported every month from the ports of Saurashtra-Kutch has come to a halt.

Of the pulses shipped from these ports, 40 per cent (mainly comprising masur dal and white pea) catered to the Gulf and Middle East markets, whereas 30 per cent of the shipments were sent to Europe, and 20 per cent went to South East Asian markets. The rest went to other parts of the world, Kanani said.

Trade with African countries, Middle East & Gulf countries, South East Asian countries, and European markets has been completely paralysed following the ban. The consignments held up at the ports are governed by business deals struck prior to the ban. The onset of monsoons threatens to damage the consignments.

The total losses are estimated in the range of Rs 4.20 crore, including transportation charges.

Farmers are unlikely to procure expected prices for their produce. "The ban on export of masur dal and kabuli chana is being protested by farmers in Uttar Pradesh where it grows in abundance. The consumption of both these commodities is negligible in India, while it is in demand across Gulf countries and Middle East nations. Kabuli chana was imported previously by us, but is now grown in the country and also exported," said a leading international commodity broker from Rajkot.

As a result, the prices likely to be availed by farmers for white pea are expected to go down. Generally, buying of this commodity is bullish for at least 2 months, usually at this time when exports in full swing.

The farmers had protested against the ban, and requested MPs of their respective regions to take up the matter with the central government, so that the two commodities were freed of the ban and could be exported, he added.