 "Pulses decline 30% since its peak in October")
Pulses prices have slumped around 30% since its recent peak in the wholesale physical markets in Vashi on strict measure adopted by the government to prevent price rise despite supply shortage.
The benchmark tur price slumped to trade currently between Rs 100 and Rs 110 a kg in Agricultural Produce Markets Committee (APMC), Vashi. In yet another benchmark market in Latur, desi tur is quoted at Rs 85 a kg, a sharp decline of 37% from its recent peak of Rs 135 in October last year.
With this, hue and cry of pulses price rise has been abated in the wholesale markets. But, pulses prices continued to remain elevated in retail markets. Despite a sharp decline in wholesale, consumers still pay Rs 175-180 for a kg of packed tur dal. In hypermarkets, however, a kg of tur costs between Rs 180-210.
“Pulses prices have been artificially pressurised despite lower availability from local as well as overseas sources. Its production in India is lower than consumption. So, the government needs to import pulses at the price determined by the exports markets. Hence, pulses price are likely to remain elevated until a long term solution is worked out to become self sufficient,” said Sri Prakash Goenka, Director, U Goenka & Sons Pvt Ltd, a city-based pulses importer.
In Latur market, urad price declined by 20% since October to trade currently at Rs 102 a kg. Chana of Delhi origin, also plunged by over 14% to Rs 46 a kg since its recent peak four months ago.
When retail tur price shot up to touch Rs 200 a kg in October last year, the government levied stock limit in pulses. Many stockists were raided overnight and the government seized around 80,000 tonnes of various types of pulses. A majority of the seized quantity belongs to importers.
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“While the seized quantity is yet to be released, further raids and seizure on imported pulses prevented amid fear of supply getting hampered. Instead of raids on importers, the government should focus on productivity enhancement schemes for the benefits of farmers,” said Bimal Kothari, managing Director, Pancham International, and vice chairman of India Pulses and Grains Association (IPGA).
The major factor attributed to the fall in pulses price was the threat created by the government through import of pulses. For ready intervention in the market, the government imported 5,000 tonnes of raw tur to obtain a mere 3,500 tonnes of dal after processing.
India produces around 17-18 million tonnes of pulses annual against an estimated consumption of 23 million tonnes.
With the late monsoon rainfalls during the last kharif season, pulses output is expected to get hit resulting into increasing dependence on imports.
Goenka believes that pulses prices would bounce back in a couple of months due to acute supply shortage.