Pulses import surges to record 4.1 mt

Imports of pulses have topped a record 4.1 million tonnes in 2014-15 fiscal as erratic monsoon affected production and the recent unseasonal rains affected the standing rabi crop as well.

According to official data, pulses imports breached the 2012-13 record high of 3.8 million tonnes during April-January period of the last fiscal valued at ₹14,978 crore. In the corresponding period ofc 2013-14 fiscal, pulses imports were 3.17 million tonnes, valued at ₹11,084 crore.

Bullish outlook “Imports for 2014-15 are expected to touch 4.5 million tonnes,” said Pravin Dongre, Chairman of the Indian Pulses and Grains Association (IPGA), the apex trade body. “Imports are likely to remain high in the current financial year too,” he said.

The possibility of a weak monsoon coupled with rising domestic consumption are expected to aid imports this year. However, the global supply scenario may not support any significant increase in India’s imports from last year levels. Also, rise in prices in recent months could affect the shipments.

“Global prices have moved up by an average of 20-30 per cent in the last few months and are expected to remain firm,” Dongre said.

Domestic prices have also moved up in the recent weeks on concerns the recent unseasonal rain affecting the crop in key producing States of Madhya Pradesh and Rajasthan . “Kharif production was lower on delayed arrival of monsoon last year. Also, the rabi acreage was less, resulting in lower output,” said Ajitesh Mullick, Vice-President at Religare Commodities.

According to the second advance estimates, production of pulses for 2014-15 is estimated at 18.43 million tonnes, down by 1.35 million tonnes over previous year’s output. Chana production is pegged at 8.28 million tonnes against the previous year’s 9.53 million tonnes. The output of urad is expected to shrink to 1.61 million tonnesfrom 1.7 million tonnes.

Trade sources said the actual pulses output could turn out to be lower than the Centre’s estimates as the second advance estimates, put out on February 18 by the Ministry of Agriculture, have not factored in the crop losses caused by the unseasonal rain in recent weeks.

“Prices have firmed up by 10-15 per cent in the past one month on concerns of crop loss. They are likely to stay firm,” said Bimal Kothari, Vice-Chairman, IGPA. The country still relies on imports to meet the growing demand as pulses account for a major source of proteins for a large section of population. The rising income levels, especially among the middle class , are driving consumption, Kothari said. Importers have started contracting higher volumes for the current year. “We are looking to import more this year — about 30,000 tonnes as against 20,000 tonnes last year,” said Kothari, who is also the Managing Director of Pancham International, an importing firm.

Duty free After edible oils, pulses form the second largest commodity in the country’s food import basket. India is the largest producer, consumer and importer of pulses in the world. The Centre has extended duty-free imports till September. Pulses imports, according to DGCIS, have increased from 1.3 million tonnes in 2004-05 to 3.8 million tonnes in 2012-13. In 2013-14, pulses imports declined to 3 million tonnes due to increased domestic production.

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