The Hindu Business Line : Centre notifies ban on pulses export

In a notification (No. 15 (RE-2006)/2004-2009) issued on Tuesday, the Union Commerce Ministry said the ban would not apply to imports that have been made under advance licence before it came into effect.

The ones covered

The ban applies to over 10 types of pulses, guarseed, lentils and split ones too.

The pulses that are covered under the ban are chickpea, dried leguminous vegetables, including shelled ones, peas, black matpe (urad), arhar (pigeon pea), small red beans, broad beans, red kidney beans and split beans.

According to trade sources, almost all pulses have been covered since the Centre suspects exporters could get away "even showing black matpe as red bean."

`Could tell on trade'

The pulses trade sees the move as one that could affect the country's standing in the global market in the long term. Though the ban will be effective for only six months from the date the notification has been issued, the trade feels competing countries such as Burma, Turkey, Australia and Mexico gaining at India's cost.

According to Mr Kailash C. Bharatiya, President, Pulses Importers Association, India has been gaining ground in pulses trade during the last two years. It had been exporting nearly one lakh tonnes of chickpea (Kabuli chana) to countries in the Gulf and others such as Sri Lanka and Pakistan during the last two years, while other pulses' shipments accounted for about three lakh tonnes.

The Cabinet Committee on Prices last week decided to ban export of pulses on the grounds that domestic prices were ruling high.

Conceding that prices in the domestic market were ruling "a little high," trade sources said prices of pulses, in general, were ruling high this year on the crop being hit by adverse weather conditions in countries such as Turkey and Mexico.

Move pays off?

The Centre's move seems to have paid off with prices of various pulses showing a declining trend in the futures market. For example, Chana July contracts have declined to Rs 2,232 and Rs 2,141 a quintal respectively on NCDEX and MCX currently from Rs 2,621 and Rs 2,562 the day before the ban decision. (See table). The sole exception is yellow peas, which has increased by Rs 21 a quintal on MCX.

According to Mr Majula Lanerolle, Managing Director of Sri Lanka's Glolan International, India has made a headway in the island nation, garnering nearly 90 per cent of the market share of 17,000 tonnes consumption.

"India is a major pulse supplier to our country. Our people are used to Indian chickpea taste and once used to a particular variety, our people stick to it," Mr Lanerolle told Business Line during his visit to India last month.

According to Mr Kumar Jaising of Shalom Trading, Mumbai, non-resident Indians would be hit by the ban. "Split pulses that have been banned were being exported mainly to cater to NRIs," he said.

Chana supply to Pak

A question mark also hangs over the 51,000 tonnes chana contract won by exporters in a tender floated by Pakistan early this month. "That is almost gone now," said a trade source.

Mr Bhartiya said pulses were being imported and exported. "But we were importing pulses at $500 a tonne and exporting at $900 a tonne," he said.

More Stories on : Exports & Imports | Pulses

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page