Festival demand sends pulses prices soaring

Pulse prices have shot up by over 25 per cent this festive season, with pigeon pea (arhar) selling at Rs 46-48 a kg and gram (channa) at Rs 39-40 a kg in retail stores, despite imports of 1.6 million tonnes.

Traders attribute the sharp rise in prices to the festival-driven demand as also slow arrival of fresh crop in the market.

They said fresh crop is not reaching the wholesale grain markets despite significant improvement in kharif production. "Farmers seem to be holding back the crop hoping the prices will rise further," a Delhi-based trader said.

Meanwhile, PEC contracted to import 3.87 lakh tonnes of pulses comprising urad, tur, moong, yellow peas and masoor till October 31, of which 1.34 lakh tonnes have arrived in the country.

The pulses import contract of STC stood at 3.15 lakh tonnes, of which 1.83 lakh tonnes so far reached here. MMTC contracted for importing 2.56 lakh tonnes and the arrival was 1.54 lakh tonnes.

Public sector cooperative Nafed is able to bring in 1.71 lakh tonnes of various pulses from its import contract of 2.6 lakh tonnes.

According to official sources, kharif pulses production is estimated at 5.51 million tonnes in 2007, against 4.74 million tonnes in the previous season.

Prices of arhar, also known as tur, and chana "" the two most consumed pulses "" have increased to Rs 46-48 and Rs 39-40 a kg respectively from Rs 38 and Rs 32 in September.

The government-owned firms such as MMTC and STC have contracted for import of 1.21 million tonnes pulses in the current fiscal, they could bring in 644,291 tons till October-end.

The total import since April this year, including those by private traders, is estimated to add up to 1.6 million tonnes.

Government has allowed duty-free import of pulses since last year to contain domestic prices. It had also asked PSUs such as MMTC, PEC and STC, and leading cooperative Nafed to import 15 lakh tonnes of pulses by December-end and agreed to subsidise 15 per cent on import bill.

Traders said any softening in pulse prices would depend on production of rabi crop like chana.