MUMBAI (Commoditiescontrol) – All the steps taken by the government to support the prices of pulses so far has proved unsatisfactory, however if it put quantitative restriction on the import of Chana (Chickpea), Matar (Peas) and Masoor (Lentil), then there is good prospects for pulses price to stabilize and even led to some recovery at least up to minimum support price (MSP) level.
Government earlier this year in August put quantitative restrictions on Tur, Urad/Moong followed by relaxation in exports of all pulses, and in latest event it has raised 50% import duty on Matar.
The recent measures taken by the government arrested price fall of Tur, Urad, Moong and Chana temporarily, but higher rabi crop sowing aided by regular import of Matar, Chana and Masoor dented market sentiment, leading to fall in pulses price, especially Chana.
Government objective behind 50% duty hike on Matar import was to curtail its flow, which has increased substantially during the last three years to bridge supply-demand gap due to lower pulses production in 2014-15 and 2015-16. But since the country in 2016-17 produced record crop, which was more than domestic consumption led to sharp fall in prices. The fall was mainly due to excess and record pace of import, which has turned out as blow for pulses prices in the domestic market.
Canada, largest pulses exporters in the world, harvest record Matar and Masoor production in 2016-17 followed by bumper Chana crop in Australia. Other key exporting nations too have produced better crop.
Matar share in total supply surged from 6% in 2012-13 (Apr-Mar) to 11% in 2016-17, while its share in total pulses import jumped up from 32% in 2012-13 to 48% in 2016-17. Similar trend was also observed in Chana and Masoor.
.png)
The major Matar producing countries are likely to reduce their offer price to nullify the duty impact to get rid of huge stocks lying with them, as they don’t have any other consumer as big as India.
The current year’s pulses production 2017-18 is expected to meet the target 229 lakh tonnes set by the government against domestic consumption of 221-223 lakh tonnes, thus it makes sense to restrict Matar, Chana Masoor imports to limit excess supply and support domestic farmers, so that they get MSP rates fixed by government, otherwise sharp fall in prices from this level can’t be ruled out.
Centre has already restricted Tur, Urad/Mung Import and thus it’s now time to put quantitative restriction on Chana, Masoor and Matar. Though government has already raised import duty of 50% on Matar, but is unlikely to restrict supply for long period as overseas sellers are likely to reduce their offer price, so they can get rid of huge stocks lying with them. They don’t have any other options as India is the main consumer of their pulses.
India has capped Tur annual restriction at 2 lakh tonnes followed by 1.25 lakh tonnes supply from Mozambique under G2G buying programme, while Urad/Moong at 3 lakh tonnes. The government can put quantitative restriction on Chana, Masoor and Matar at 15 lakh tonnes. The total import now sums at 21.25 lakh tonnes taking total availability at 250.25 lakh tonnes for 2017-18. The supply will be comfortable against demand and thus any sharp fall in pulses prices can be arrested and may fulfill government objectives.
(By Commoditiescontrol Bureau; +91-22-40015533)
0 Comments 
Post Comment 
