Global shortage likely to fuel pulses' import cost

With only 3.4 million tonnes exportable surplus of pulses available in the current year internationally, the country may end up paying higher prices to import the commodity. Last week, the government decided to import 1.5 million tonnes of pulses to control prices.

According to the National Agricultural Co-operative Marketing Federation (Nafed), one of the state-owned importing agencies, India has to vie with other nations to get a share of the 3.4 million tonnes exportable surplus. Although imports may ensure availability, it may not bring down prices. The global exportable surplus of gram is only 6 lakh tonnes, mainly housed in Australia and Canada. While urad and tur have a surplus of 3 lakh tonnes each, all in Myanmar, the surplus of moong is 5 lakh tonnes, mostly in Myanmar and China. Yellow peas has the highest surplus with 16.5 lakh tonnes, mainly in Canada, France and Ukraine.

"International prices are high but imports will ease domestic supply-side pressure," said Ravi Kumar, chief general manager (agro) of Projects Equipment Corporation (PEC), which has also been directed by the government to import pulses. Last week, the PEC floated a tender for importing 18,000 tonne urad, tur and moong. The corporation will float another tender this week to import 70,000 tonnes yellow peas.

"Though domestic prices of pulses may not come down with the imports, the rate may stabilise," said Alok Ranjan, managing director, Nafed. The federation recently floated a tender to import 40,000 tonnes of urad. The government has also directed the State Trading Corporation (STC) and the MMTC to import pulses. Private traders will continue to import pulses as there is nil import duty on the commodity till March 2008.

India's pulses imports have seen a rising trend: 1.34 million tonnes in 2004-05, 1.61 million tonnes in 2005-06 and about 2 million tonne in 2006-07. In the current year, pulses import may surge by 2.5-3 million tonnes .

Domestic production of pulses touched a high of 14.9 million tonnes in 2003-04, but declined to 13.1 million tonnes in 2004-05 and reached 13.4 million tonnes in 2005-06. In the current year, the production is pegged at 14.1 million tonnes.