500-700 tonne masur dal held up after export ban

Around 500-700 tonne of masur dal exports from Indore and adjoining districts are in jeopardy after the government's abrupt ban on pulses exports, an industry official said on Friday.

Most of this masur is either in transit to Mumbai port or lying in the warehouses of clearing agents, the official said.

"The government should have enforced the ban after 8-10 days which would have given some time to traders to clear all pending shipments," Suresh Agarwal, president of Indore Dal Millers Association said.

He said the fate of around 500-700 tonne of masur dal meant for exports are in limbo. On Thursday, the central government allowed private players to import wheat, banned pulses exports with immediate effect, and allowed the import sugar at cut-duty rates up to September 30.

The steps were meant to contain spiralling inflation. India's headline inflation, measured by the Wholesale Price Index, topped 5 per cent for the first time in 50 weeks on Friday.

Traders said the goods meant for export cannot be sold in local markets as most are in 5 kg packages, while in India pulses may be sold only in minimum package size of 25 kg.

"Now most exporters and traders would have to bear the additional cost of repackaging the pulses," Agarwal said.

Meanwhile, the export of white kabuli chana from Madhya Pradesh has also been severely affected.

"Bulk of white kabuli chana is exported because domestic markets constitute only around 5 per cent of total demand, but now this whole export would be stopped," another city-based dealer said.

He estimated around 70,000-80,000 bags of white kabuli chana sent from Indore and its neighbouring districts are languishing in the wake of the ban.

Traders said chana (chickpea) is another commodity whose exports are likely to be affected by the ban.

Though prices of major pulses like chana, masur and tur have dropped sharply after the government announcement, most traders believe it is a temporary phenomenon.

"I feel prices of pulses would again start rising around mid-July as stocks are low, while sowing is likely to delayed due to poor southwest monsoon," Agarwal said.

Madhya Pradesh is one of India's largest pulses producers. Chana (chickpea), masur and urad are the main varieties grown.

Thursday, chana (kantewala) sold in Madhya Pradesh at Rs 2,350-2,360 a quintal, down Rs 50.