No sign of let up in pulses imports

India’s pulses imports are expected to remain high in the current financial year despite brighter prospects for the domestic harvest as farmers have chosen to plant more of these grain legumes in the ongoing kharif season.

The Indian Pulses and Grains Association (IPGA), the apex trade body, has projected imports for the current financial year to be at 6-6.5 million tonnes (mt) — up from actual imports of 5.7 mt last fiscal year.

Attributing the high imports to rising consumption, IGPA Chairman Pravin Dongre said the next chana crop will be harvested in March 2017 and import estimates are for April 2016-March 2017. “Any reduced imports will reflect in 2017-18 and not in 2016-17,” he said.

A weak monsoon and adverse weather had impacted the chana crop this year (chana accounts for about half the pulses output of 17 million tonnes) resulting in a major deficit.

IPGA estimates that the chana crop harvested in March 2016 was about 15-20 per cent lower than the Centre’s estimate of 7.48 mt, a trend reflected in the mandi arrivals.

The trade has contracted 3 mt for imports, which will arrive between September and December, Dongre said. Peas imports between September and December will be approximately 1.5 mt, while the import of chana and arhar during the period are pegged at 0.8 mt and 1.5 lakh tonnes respectively.

Prospects this year

Dongre said pulses output in the current kharif season would be 40-50 per cent higher over last year’s 5.49 mt.

The projected higher output is based on the increased acreage as record prices have prompted farmers across the country to migrate to pulses from cotton and soyabean. Pulses acreage till last week was up 39 per cent at 90 lakh hectares. Even the global crop is higher this year.

In Canada, production is up 40 per cent, while in Australia the forthcoming crop is 50 per cent higher. In Africa, the crop is up 15-20 per cent.

“We believe there will be a sharp correction in prices on larger availability of pulses,” Dongre said.

India is the largest producer, consumer and importer of pulses in the world. Pulses are the major source of protein for a large section of the population and the country still relies on the imports to meet demand.

The government made pulses imports duty free last December after a surge in prices had fuelled food inflation.

Rising population and income levels have been driving consumption, which is estimated to be growing at 2-3 per cent annually. 

Source : BusinessLine