India to import 155,000 tn of lentils to boost reserves

State Trading Corporation of India invited bids to import 155,000 tonnes of lentils, one-tenth of the planned quantity, to help replenish government stockpiles and ease domestic prices of food staples.

The state-run company will buy 50,000 tonnes of yellow peas of European origin in lots of 20,000 tonnes and 25,000 tonnes for delivery at Mumbai and Vishakhapatnam ports between July and August, according to the document on its website.

The company will import 105,000 tonnes of yellow peas of Canadian origin in lots of 30,000 tonnes and 40,000 tonnes for delivery between September and November. Suppliers will have time until May 18 to submit bids.

India will buy 1.5 million tonnes of lentils including gram and yellow peas to boost domestic stocks, said Junior Finance Minister Pawan Kumar Bansal yesterday in reply to a question in parliament.

The government contracted to buy 287,000 tonnes as of April 25 and 52,039 tonnes have already reached ports, he said. India is taking steps to stockpile grains and pulses as rising domestic prices threaten to fuel inflation as demand exceeds output.

Finance Minister Palaniappan Chidambaram last week cut some duties in his final budget to help slow inflation that reached a two-year high in January.

Prime Minister Singh's Congress party lost two state polls in February because of spiralling prices of food grains including wheat and lentils.

Inflation slowed to 5.77 percent in the week ended April 21, from a two-year high of 6.69 per cent in January, but remains above the central bank's forecast of 5 per cent.