Subsidy sought on pulse imports

Importers are sceptical of various state governments' decision to impose stock limits on pulses, adding that the move will not bring down the prices in the long run.

Making out a strong case for greater imports to check prices, they urged the government to import pulses through its agencies. They also demanded the government to provide them subsidies to carry out imports, given the high global prices.

"Putting restrictions on stock limits is not a long-term solution. The country will soon face shortage of pulses and prices will turn bullish. There is a shortage of around 3-3.5 mt of pulses at present," said K C Bhartiya, president, The Pulses Importers Association (PIA).

India produces about 13 million tonne of pulses and consumes about 15 million tonne, with the imports taking care of the difference.

"We are ready to import the required amount of pulses from Australia, Burma and Canada, if the government provides some subsidy to importers," Bhartiya said.

If the imports do take place, it would be the first time in the last 10 years that the country will be importing more than 3 million tonne of pulses.

The importers are unhappy with the delay in the government's decision to import pulses, even as the global prices are on the rise. At present, the average price of pulses (moong, urad and chana) has touched $650 a tonne.

Tur prices increased by $100 from $300 a month ago to $400 a tonne now, while those of green and yellow peas have increased to $270 from $220 a tonne.

"Rising global prices are a cause of concern and they are coming in the way of importing pulses," said Bhartiya.

Traders are now reluctant to import at higher prices, fearing losses if prices crash in the domestic market. India imports pulses from Burma, Australia, Canada, Turkey, USA, Tanzania and Mozambique.