 "Pulses import fails to arrest price rise")
The plausible reason given is a sharp drop in 2015-16 production, the worst in five years. Imports had a big part in meeting the supply gap but with a poor international crop, importers had to buy at higher rates.
This hasn’t changed much in 2016-17. Trader data shows a historic low in import during the first quarter (April-June). This didn’t allow a sharp drop in prices, though there was a slight moderation. Some traders say an extensive crackdown on importers also discouraged them. Imports fell by 6.5 per cent from the same period last year, to 860,000 tonnes as compared to 918,000 tonnes.
Take chana (Bengal Gram). Government data shows the production this year at 7.17 million tonnes, the lowest since 2009-10. Yet, its import dropped almost 79 per cent in the June quarter. As a result, its retail price went from Rs 90 a kg in the first week of July to a little over Rs 110 a kg by the end of the month, before stabilising to around Rs 105 a kg, says the website of the department of consumer affairs.
Trade sources point to low availability in global markets -- what was available was taken by India between last October and January. Indian traders imported 560,766 tonnes of chana in the latter period, against 212,025 tonnes in the corresponding period a year before, a rise of 165 per cent. This left little for future commitments.
The additional allegation is that some of the imported chana was then illegally hoarded, at ports and elsewhere. Officials said around 30,000 tonnes of it has been stored at Mumbai port since December 2015. The landed price of chana at the time was Rs 45,000 a tonne; it is now Rs 80,000 a tonne.
“This clearly shows some traders are making a killing from this crisis,” a leading importer said. They have complained to the government about a particular trader.This hasn’t changed much in 2016-17. Trader data shows a historic low in import during the first quarter (April-June). This didn’t allow a sharp drop in prices, though there was a slight moderation. Some traders say an extensive crackdown on importers also discouraged them. Imports fell by 6.5 per cent from the same period last year, to 860,000 tonnes as compared to 918,000 tonnes.
Take chana (Bengal Gram). Government data shows the production this year at 7.17 million tonnes, the lowest since 2009-10. Yet, its import dropped almost 79 per cent in the June quarter. As a result, its retail price went from Rs 90 a kg in the first week of July to a little over Rs 110 a kg by the end of the month, before stabilising to around Rs 105 a kg, says the website of the department of consumer affairs.
Trade sources point to low availability in global markets -- what was available was taken by India between last October and January. Indian traders imported 560,766 tonnes of chana in the latter period, against 212,025 tonnes in the corresponding period a year before, a rise of 165 per cent. This left little for future commitments.
The additional allegation is that some of the imported chana was then illegally hoarded, at ports and elsewhere. Officials said around 30,000 tonnes of it has been stored at Mumbai port since December 2015. The landed price of chana at the time was Rs 45,000 a tonne; it is now Rs 80,000 a tonne.
Chana apart, the trade says import of all pulses also slumped in the June quarter from a year before. That of masoor (pink lentil fell by 90 per cent over a year before. In moong (green gram) and urad (black gram) the fall was 86 per cent and 26 per cent, respectively, there being no availability abroad.
The only exception was matar (peas) and beans, whose imports rose by 80 per cent and 61 per cent, respectively, mainly due to substitution from chana and arhar, and also being a cheaper alternative.
Another reason given is lack of enthusiasm from state governments in lifting their allocations from the Centre from its own buffer. According to the latter, till the start of this week, 29,000 tonnes were allocated to 11 states and 16 per cent of this was lifted by only three — Andhra Pradesh, Tamil Nadu and Telangana.
Things are expected to ease after the new kharif harvest become available from October onwards.