Nafed tender may have only marginal effect on pulses tags

The import tender for pulses floated by Nafed would only ease the prices marginally, said a commodity analyst with IL&FS Investsmart Commodities.

In accordance with the government's directive, Nafed has come out with a tender to import 45,000 tonne pulses on zero import duty.

However, with the total production of about 14 million tonne for the current year, domestic shortage in pulses is estimated at around four million tonne.

An import of 45,000 tonne in the current situation would only succeed in easing the prices marginally and fresh import tenders would need to be floated.

Earlier this month, the government's move to withdraw 10 per cent import duty on pulses failed to bring any relief to the common man and the prices continue to remain on the higher side.

The spurt in prices of pulses seems to be beyond control. The prices of pulses would remain firm as of now, said the analyst.

The news of import would possibly keep the prices strong and the situation would improve only with the arrival of monsoon when sowing of various pulses picks up.

The farmers anticipate the prices to remain high in the next year as well. Therefore, they would be requiring more seeds for sowing of pulses, especially urad and moong.

This would further increase the demand for pulses. The prices of almost all pulses have more than doubled in the last two years. Black matpe (urad), for example, sold at Rs 21 a kg in June 2004 while the present price is about Rs 52 a kg.

Green beans (moong) sold at Rs 23 a kg in June 2004 but it has reached Rs 55 at the moment. Gram (chana) has increased from Rs 14.50 a kg to Rs 25 in the same period.