The Hindu Business Line : Inflation: Pulses index up 32 pc

While the Wholesale Price Index for all commodities increased to 208.8 points from 196.2 points at the beginning of this year (week ending January 7), the Primary Articles Index has increased to 213.4 points from 195.

Among primary articles, the food articles index was up to 216.7 points from 195.9 with cereals and pulses index rising 23.1 percentage points to 213.1 points during the period.

Pulses up sharply

A view of the foodgrain index shows a sharper rise in the prices of pulses than cereals. Cereals index was up from 187.9 points to 205.2, while that of pulses increased by 65.4 percentage points to 270.4 points between January 7 and November 18.

Prices of three of the five components in the pulses index have increased by over 60 percentage points. The pulses - urad, moong and gram (chana) - were the ones that caused worry among consumers since June this year.

Though production in 2005-06 crop year (July-June) was pegged higher at 14.4 million tonnes (mt) against 13.31 mt the previous year, lack of carryover stocks and the kharif crop being hit by adverse weather led to surge in prices. For the current crop year, kharif pulses production has been projected at 5 mt against 4.66 mt but experts see it far lower than estimated. They are also of the view that even if the Centre's projection turns true, it would not be able to meet demand.

Urad, chana

Among the three pulses, prices for fair average quality urad increased from Rs 2,650 a quintal to Rs 4,100 during the period. The surge in urad prices, specifically, began around June 22, when it jumped by Rs 500 a quintal in two days.

Chana prices were up to Rs 3,025 a quintal from Rs 1,980. Prices began to gain towards March-end as production was seen lower and demand for exports gained. Last year, chana found its way into Pakistan, Turkey, Lanka and West Asian markets.

The index of moong, the third one, increased to Rs 2,750 a quintal from Rs 2,150. Moong, too, faced supply crunch. During the period, arhar and masur were up by hardly 10 percentage points. The effect of supply demand of these pulses rubbed on peas also.

Wheat & maize

On the cereals front, wheat and maize witnessed the steepest rise of 31.2 and 23.5 percentage points, respectively. Wheat increased to over Rs 1,150 a quintal from around Rs 725 at the beginning of the year. Maize, on the other hand, was up at Rs 817 a quintal from Rs 685.

Wheat production declined to 68.03 mt against 72 mt, while maize output this year has been projected down at 12.4 mt against 14.5 mt last year.

Duty concession

The prices have surged despite the Centre's measures to curb them through ban on exports and cut in import duty. While pulses imports have been allowed duty-free, wheat imports by private trade have been permitted at a concessional five per cent duty. However, imports for buffer stocks by the State Trading Corporation have been allowed duty-free. Nearly 70 lakh tonnes, including 55 lakh tonnes for buffer stocks, have been contracted for imports.

More Stories on : Economy | Pulses | Foodgrains

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