For pulses security, planners need to rethink restrictive policies

The import quota issued by the government for pulses as part of quantitative restriction on import of tur/arhar (pigeon pea), urad (black matpe) and moong (green gram) runs the risk of remaining unfulfilled as the Indian pulses import trade is struggling to find adequate supplies of the material in the international market.

It may be recalled, for the financial year 2019-20, the government has released a ceiling of 1.5 lakh tonnes each for urad and moong; and for tur/arhar, two lakh tonnes, initially, which was subsequently raised to 4 lakh tonnes because of lower harvest at home last year.

The licence to import comes with condition that all imports have to be completed before October 31 this year ostensibly in order that such imports do not impact domestic prices at the time of the upcoming kharif harvest.

Import of both tur/arhar and moong is likely to fall short of the specified quota. In case of tur/arhar, the first tranche of import licences covering two lakh tonnes have been issued; but traders are unable to source all the quantity as important origins such as Myanmar have run out of stock.

According to traders, Myanmar may be able to supply a maximum of 1.5 lakh tonnes. So far, about 70,000 tonnes have arrived and the rest would reach in the next two months. In other words, against an aggregate ceiling of 4 lt for tur/arhar, India may be able to contract for and receive only about 40 per cent.

African origin material will be available only after August; and therefore traders are wary of contracting with African suppliers because of the October 31 deadline. To be sure, at about $ 600 a tonne, African origin material is considerably cheaper than Myanmar’s $750/t.

As for green moong bean, versus a quota of 1.5 lt,, quantities available through various origins such as Myanmar, Australia, Brazil and Africa may at best total 1 lt. Moong prices show large variations among different origins with Australia quoting a high $1,100/t and Africa $700/t. Offers from Myanmar and Brazil lie in between.

In other words, the moong import will also fall short of the quota by a third.

Urad is of course available in sufficient volumes, estimated to be up to 4 lt. So, fulfilling urad quota will not be a problem, traders assert. Price ranges from $700/t (Myanmar) to $550/t (African origin).

There are lessons in this for the Indian policy makers. Restrictive trade policies of the last two years have forced long time overseas suppliers to reduce their planting and production. Given the known vulnerabilities of Indian agriculture in general and pulses in particular, it would be unwise to continue to discourage our trading partners. We do not know how soon we may need them.

The second issue for New Delhi to ponder over is the continued state of domestic pulse prices ruling below the minimum support price. Low prices are not a sign of glut; indeed, they signal a lack of growth in domestic consumption.

At a time when the country is nutritionally-challenged characterised by pervasive under-nutrition and protein deficiency, the government should have on a war footing taken initiatives to boost pulses consumption. Such an initiative would serve two purposes – one, help boost domestic prices and thereby growers’ incomes; and second, help address protein deficiency among large sections of the population.

After all, pulses are the most economical vegetable protein, and offer a perfect mix of biological value when eaten with cereals. New Delhi needs to get down to some serious work on pulses rather than stay with the smug and illusory feeling that we are self-sufficient now.

The writer is a policy commentator and agribusiness specialist. Views are personal

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