Prices of pulses are likely to fall below Rs 60 per kg in the retail market in the next one month as production is expected to rise by one million tonnes in Kharif this season compared to last season on higher acreage, according to an industry body.
As per the government data, prices of tur, urad and moong are currently ruling in the range of 71-81 per kg in Delhi. High prices of pulses lead to higer inflation, which was at at 10.05 per cent for the week ended August 14.
"Production is expected to go up by one million tonnes in Kharif as area has increased significantly," Pulses Importers Association of India President K C Bhartiya said.
He said higher domestic output coupled with decline in global prices will push prices of pulses to below Rs 60 a kg in the retail market from October when the new crops come into the market.
Bhartiya noted prices have declined by 15-20 per cent in the international market in the last two months.
According to agriculture ministry data, area under pulses till August 26 in the Kharif season has increased by 22 per cent to 10.9 million hectares on account of good rain.
Pulses production was 14.59 million tonnes in 2009-10 crop year (July-June) and out of that 4.3 million tonnes were in the Kharif season.
On imports, Bhartiya said it would be around last year's level of 3.5 million tonnes.
India is the world's largest producer of pulses, still the country has to depend on imports as the domestic demand is pegged at 18-19 million tonnes against the current output of around 15 million tonnes.
The government is targeting to raise production in the 2010-11 crop year to 16.5 million tonnes for reducing the country's dependence on imports. It has hiked the minimum support price by up to 30 per cent to enthuse farmers for putting more area under the crop.
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