Pulses output down 8% on lower acreage, crop damage

Prices to go up during lean season, traders seek compensation package

India's rabi pulses output is likely to decline by 8 per cent this year on lower acreage, in the wake of unseasonal rain and hailstorm taking a toll on crops.

Data compiled by private research firm GGN Research showed India's overall winter-sown pulses output at 6.84 million tonnes (mt) during 2014-15, as compared to 7.40 mt reported in the previous year.

The decline in rabi season pulses output assumes significance, as it contributes to nearly 30 per cent of India's overall pulses output. Pulses prices, however, remained resilient so far this year, despite lower output estimate. With an estimated decline in rabi season, the ministry of agriculture in the second advanced estimate had predicted 10 per cent decline in overall pulses output at 18 mt this year, as compared to 20 mt last year.

Bimal Kothari, vice-chairman of India Pulses and Grain Association (IPGA) and managing director of import firm Pancham International, said, "Lower output may support pulses price moving up this year."

Chana, which contributes over 75 per cent of rabi season pulses output, is estimated to slump by 15 per cent at 5.56 mt this year as against 6.52 mt during last year.

  A paper presented by GGN Research at the announcement of India Pulses Conclave 2016 here on Saturday showed 13 per cent decline in acreage of chana this year at 8.37 million ha as compared to 9.64 million ha last year. The chana yield is expected to decline by a marginal 2 per cent.

"Early withdrawal of monsoon, followed by dry weather in November-December (sowing) period, left with low soil moisture resulting into a sharp reduction in chana acreage," said Pravin Dongre, chairman of the apex pulses trade body India Pulses and Grain Association (IPGA).

By contrast, minor pulses crops like lentils and yellow peas benefited from unseasonal rain. But, the sharp jump in their estimate production is unlikely to compensate the loss in chana. Yellow peas production may rise 32 per cent to 0.59 mt.

With intermittent rains, some losses and quality deterioration occurred in standing crops. As a result, further decline in output cannot be ruled out, traders said and demanded the government must support the industry through compensation package to farmers for survival of the entire pulses value chain.

Corrigendum
IPAG stands for India Pulses and Grain Association and not Grain 'Merchants' Association as described in the earlier version. The India Pulses Conclave will be held in 2016, not in 2015.