STC seeks insurance for Rs 70-cr pulses import

State Trading Corporation has floated a tender seeking insurance cover for the import of pulses, a government official said today.

The trading house is planning to import 25,000 tonnes of pulses in June-August, and the transaction is likely to cost around Rs 70 crore.

Of the total quantity sought, the company is planning to buy 10,000 tonnes urad, 5,000 tonnes green moong, and another 10,000 tonnes lemon tur.

The cover has been sought from Myanmar port to warehouses in Visakhapatnam, Kolkata, and Mumbai and will include inland transit costs. The tender seeking the cover closes Thursday.

Prices of pulses have almost doubled since last year on lower output in domestic and global markets.

According to latest government estimates, India's pulses output in the current crop year to June is seen at 14.1 million tonnes, marginally up from last year's 13.4 million, but lower than the government's target of 15.1 million tonnes.

In April, the Cabinet Committee on Economic Affairs had approved the import of 1.5 million tonnes pulses by government agencies over six-eight months to shore up domestic supplies.

National Agricultural Cooperative Marketing Federation of India, STC, MMTC, and PEC have also been asked to detail market-wise and month-wise imports.

Last year, the government had allowed import of pulses at zero duty and banned exports to ensure higher availability in domestic markets, and also to keep a check on prices.

In May, it extended the period of duty-free imports until March 31, 2009.

India imports around 2 million tonnes pulses each year to meet its requirements, as the country's annual output has been stagnant at 13-15 million tonnes since the past few years. Imports have, however, been on the rise since last year.