MMTC to import 46k tn of lentils to boost reserves

MMTC, a state-run trading company, invited bids to import 46,000 tonnes of lentils to build stockpiles and ease a domestic shortage of the commodity.

MMTC will buy 40,000 tonnes of chick peas and 6,000 tonnes of red lentils for delivery at Mumbai, Kolkata and Chennai ports between July and November. Lentils will be bought in lots of 1,000 tonnes and suppliers have until May 22 to submit bids, according to the document on its website.

India will buy 1.5 million tonnes of lentils including gram and yellow peas to boost domestic stocks, said Minister of State (Finance) Pawan Kumar Bansal last week in reply to a question in parliament.

The government contracted to buy 287,000 tonnes as of April 25 and 52,039 tonnes have already reached ports, he said.

India is taking steps to stockpile grains and pulses as rising domestic prices threaten to fuel inflation as demand exceeds output. Finance Minister P Chidambaram last week cut some duties to help slow inflation that reached a two-year high of 6.69 per cent in January.

Inflation, which slowed to a four-month low of 5.66 per cent in the week ended April 28, is still above the Reserve Bank of India's forecast of 5 per cent.