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The bearish trend in prices of pulses, wherein open market prices continue to hover around the minimum support price levels (MSP), has prompted the trade and farmers to seek the Government intervention.
The pulses trade wants the Government to hike import duty and open up exports, a move that could help stabilise prices.
At the same time, a section of growers, not happy with the recently announced hike in MSP for tur or arhar at Rs 4,500 a quintal for the current kharif season, wants the support prices further hiked to offset the rise in input costs.
“The Government should look at either increasing import duty or allowing exports to stabilise prices, or else the acreage next year could shift in favour of other crops,” said Pravin Dongre, President of Indian Pulses and Grains Association.
Citing the example of chana, prices of which are at a 24-month low at around Rs 2,900, below the MSP of Rs 3,000, Dongre said the farmers’ realisations are getting affected.
The Centre had prohibited the exports of pulses since June 2006 on domestic shortages and the ban, which has been extended from time-to-time, is currently in force till March 2014. India is the largest producer of pulses, but also imports about three million tonnes annually to meet the domestic shortfall in consumption.
Even the prices of red gram or tur are hovering around the MSP levels.
At major markets in Gujarat, Karnataka and Maharashtra, the average prices are ranging between Rs 3,700 and Rs 4,200. In Mumbai, even the landed price of imported tur from Myanmar stands at around Rs 4,000 for the old crop and at about Rs 4,100 for the new crop.
The imported prices are after factoring the recent decline in rupee against the dollar, said Rajesh Agarwalla of the Delhi-based Premier Pulses Ltd.
“The Government should open up the exports, at least with some quantitative restrictions,” he said.
Pulses importers have taken a hit on account of the recent decline in rupee value and have booked losses. “We have stopped signing new contracts,” Agarwalla said.
In its price policy recommendations for the kharif season, the Commission for Agriculture Costs and Prices (CACP) had also recommended imposing an import duty on pulses and oilseeds to boost the domestic production.
Basavaraj Ingin, President of Karnataka Tur Growers Association, said the MSP for tur should be hiked to at least to Rs 5,500, as the cost of production on rising input costs of labour and fertiliser have shot up to around Rs 5,000.
He demanded that the Government start distributing pulses through the public distribution system and control imports by imposing duty so that the prevailing prices of pulses stabilise.
> vishwanath.kulkarni@thehindu.co.in
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