Pulses' import tender delay to push up prices

The government's decision to postpone imports of about 1,86,500 tonne of pulses might have a spiralling effect on prices of these pulses, especially urad, said Pulses Importers' Association president K C Bhartia.

"At first, the government made announcement regarding the imports. That's why the trade did not take the initiative to import. Whenever prices rise, the trade is held responsible. In the present circumstance, import is the only way to tide over the rising prices and the government should import," he said.

The year saw a shortage of pulses, and still the government did not raise the minimum support price of urad and moong, Bhartia added. Urad prices will firm up on account of shortage and will continue to remain bullish till the domestic arrivals of the new season begin.

This news would not have much impact on tur prices as the domestic stocks are sufficient to cater to demand. However, prices will pick up with the rising demand, according to a Kotak CSL Research analyst.

At Multi Commodity Exchange, the spot price of urad, which declined to Rs 2,966 on July 28 from Rs 3,121 a quintal on July 17, has bounced back to Rs 3,041. Urad for the August delivery increased to Rs 2,865 from Rs 2,798 a quintal on Friday.

The Minerals and Metals Trading Corporation (MMTC) on July 10 floated a tender to import 1,10,500 tonne of pulses "� tur, urad and moong.

According to an MMTC official, the corporation had received offers for the entire amount, but the prices quoted were not viable. The corporation would come out with fresh tenders when the prices softened, he added.

The Projects Equipment Corporation (PEC) invited bids for importing 76,000 tonne of pulses comprising urad, moong, tur and chana. The PEC had received offers for about 60,000 tonne.

However, the government has decided to defer on account of high prices outside. Both the tenders now stand cancelled.