Pricey pulses: Govt floats tender to import 5K tonnes

The gap in demand and supply of pulses has widened in the last two years due to drought. Pulse production is around 17 million tonnes while demand is for 23.6 million tonnes (mt). The country had imported around 5.5 MT of pulses in 2015-16, but still there is a shortfall of around 1 MT, putting upward pressure on prices.

The government is importing pulses through MMTC, using Price Stabilisation Fund (PSF) for creating buffer stock of pulses and other essential commodities so as to intervene the market and to check prices when the need arises.

According to the tender document, the MMTC has invited bids for import of Desi Chick Peas from Canada or Australia. The bid should be made for minimum 2,500 tonnes and the last date is June 15. 

“Note that all the pulses quoted shall be from new crop and shall be sound, clean, wholesome, free from moulds/fungus,x...artificial colour, admixture of unwholesome substance and should be of reasonable uniform size, shape and colour characteristics,” the MMTC said in the tender. The Centre is procuring pulses to create a buffer stock of 1.5 lakh tonnes. State-run agencies Food Corporation of India (FCI), National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and Small Farmers’ Agriculture-Business Consortium (SFAC) had already procured 1.11 lakh tonnes of pulses so far from farmers for creating buffer stock.

At the same time, for raising lentils’ domestic output, the Centre has raised their minimum support price (MSP) by up to Rs 425 per quintal for this year. The tur dal MSP has been raised to Rs 5,050 per quintal for this year from Rs 4,625 per quintal last year. Moong dal support price has been increased to Rs 5,225 per quintal for the year 2016-17 kharif season from Rs 4,850 per quintal. Urad dal MSP has been raised to Rs 5,000 per quintal from Rs 4,625 in the said period.

India is the world’s largest producer of pulses, but its domestic demand outstrips production. The shortfall is met from import. As per the Agriculture Ministry’s estimate, pulse production is estimated at 17.33 mt in 2015-16 crop year (July-June), marginally higher than the previous year’s production of 17.15 MT.

The decision to increase bonus on pulses was approved by the Cabinet, which is headed by Prime Minister Narendra Modi. The move was described as a pro-farmer initiative of the Centre by Union Agriculture Minister Radha Mohan Singh. “The decision validates the point that PM Modi-led NDA government is committed to the upliftment of farmers. The bonus of Rs 425 per quintal for pulses will boost the output and check price rise,” Singh had said after the decision. The Centre’s decision was also hailed by experts, who had said that bonus scheme on pulses will motivate farmers for pulse cultivation.