The government should hike the minimum support price (MSP) for pulses in the country to boost output and cut dependence on imports, which are seen rising to 3 million tonnes in the current financial year, up from 2.5 million a year ago, K C Bhartia, president of Pulses Importers’ Association of India, said today.
He said imports are expected to rise about 20 per cent this year due to a sharp fall in the kharif output and rising consumption.
The government’s first advance crop output estimates peg kharif pulses production at 4.72 million tonnes, down from 6.45 million in the year-ago period due to a prolonged dry spell in many parts of central and western India.
Although the southwest monsoon arrived nearly a month ahead of schedule this year, rains were delayed and deficient in many key growing areas.
The government hopes to make up for fall in kharif pulses output in rabi season by bringing in 1.5 million hectares additional land under sowing.
Rabi sowing has gathered pace, and farmers have sown pulses over 6.4 million hectares so far, up from 3.9 million a year ago. Despite the higher acreage, Bhartia was sceptical about a sharp increase in rabi pulses output. He said acreage under pulses is unlikely to increase substantially this year, and pegged output at 8.7 million tonnes, almost the same as 8.66 million last year.
He said the total pulses output, for kharif and rabi together, would be lower on year, leading to higher imports.
Bhartia said to contain the increasing pulses import bill, government should take steps to encourage higher output in the country.
Pulses production has been stagnant at 14-15 million tonnes in India since over a decade and consumption has been increasing gradually, leading to a steady increase in imports.
Bhartia said to ensure higher imports, government should give a subsidy of 15 per cent for imports, as it does on edible oils.
The government is giving a subsidy of 15 per cent to state-run trade houses on losses incurred on importing edible oils and selling them to states.
MSP boost
Bhartia said the government should increase the MSP of pulses substantially to increase domestic output.
“Farmers will be encouraged to take up pulses over a larger area only if they are assured of a good price for the produce,” he said.
Pulses are currently sown over 11-12 million hectares, but most pulses cultivation takes place in rain-fed areas.
Farmers are reluctant to use expensive inputs such as pesticides and fertilisers for pulses as yield per hectare is limited and the crop is not very remunerative.
The government this year has set the MSP of tur at Rs 2,000 a quintal and for urad and moong at Rs 2,520 per quintal. Currently, prices of tur are ruling at Rs 4,300-4,400 a quintal, while urad and moong are at about Rs 3,200 and Rs 3,300 a quintal each, respectively.
Bhartia said a sharp increase in support price for pulses would ensure that farmers use better quality seeds and inputs for the produce, and closely tend to crops to get higher yields.
Pulses crops usually have a poor yield of 200-300 kg per hectare. Bhartia said higher yields would help the country meet rising gap between demand and supply.
Export push
Bhartia said government should allow pulses exprts to ensure that farmers get better, market-driven prices for the legumes.
Government has banned export of pulses since last two years to conserve domestic supplies and keep prices in check.
“With the removal of ban on exports (of pulses), mills would be encouraged to process more,” Bhartia said.
India, a large importer of pulses, also used to export about 200,000 tonnes of pulses to West Asia and other countries with a sizeable Indian expatriate population.
Bhartia said Pulses Importers’ Association has also requested Forward Markets Commission to restart futures trade in pulses.
Futures trade in tur and urad has been banned since early 2007, while trade in chana has been suspended since May.
“Data indicates despite the ban on futures, prices of pulses have not eased and neither has inflation...It is clear that government contention that futures trade leads to price rise and inflation is ill-conceived, Bhartia said.
