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Rain holds key to gram (chana) crop, while yellow peas could come under stress from February onwards due to a lower crop in Canada.
“If there is no rainfallin the next week or so in growing areas of Rajasthan, chana output could drop by 20 per cent. Last year, Rajasthan helped in a higher production of chana,” said Mr Pravin Dongre, President of India Pulses and Grains Association.
Mr Dongre and other officials of the association were here in connection with the Global Pulses Conclave 2012 to be held in Mumbai during February 15-17. The conclave, first of its kind, will focus on government policies, global market, supply outlook and plant quarantine issues. The highlight will be a price outlook session.
In the 2010-11 season that ended in June, chana production was estimated at 7.37 million tonnes.
“This year, we have already lost 40 per cent of the area in Karnataka and Andhra Pradesh due to moisture stress. Also, some farmers have shifted to chickpea (Kabuli chana),” said Mr Dongre.
Lesser area
According to the Ministry of Agriculture, chana has been sown on 85.78 lakh hectares against 89.69 lakh hectares last year. This has led to prices of chana, the major pulses crop in the rabi season, increase from Rs 2,975 a quintal on December 1 to Rs 3,390 now.
“Despite the rise, chana is the cheapest pulse in processed form. But in the next 2-3 months, the increase could be reflected in chana dal,” he said.
Stock of yellow peas in the country is high at 4.5 lakh tonnes. But a drop of one million tonnes in Canadian production could put stress and after February, the market could look up, Mr Dongre said.
Last year, yellow peas had hurt importers badly. While prices fell, importers were hut by depreciation in the rupee.
PUSLES EXPORT
Meanwhile, the association has urged the Centre to allow export of pulses besides resuming futures trade.
“The Government should allow export since prices are low. Farmers, traders and processors are all affected,” he said.
The view of the association is that the Government should allow export of at least 50 per cent of pulses imported in value-added form.
“Supplies of pulses are ample,” he said.
The pulses market is seen ruling flat until a clear picture emerges on rabi pulses. Weather in the next fortnight holds key to rabi crop's fate. Myanmar, an important source of tur, urad and moong for India, also has sufficient stocks.
On revival of futures trade in urad, tur, Mr Dongre said traders, importers and even farmers should be given an opportunity to hedge risks.
Futures trade should be allowed in other pulses too, he said.
Futures trade
The Centre had banned futures in urad and tur five years ago after their prices sky-rocketed and inflation soared.
“The Abhijit Sen Committee which went into whether futures trading were behind the price rise has submitted a report that found no connection between futures trading and higher inflation.
The futures market serves as a signal of things to follow. Therefore, futures in pulses should be allowed,” Mr Dongre said.
He also regretted that farmers were replacing pulses with other commercial crops. “Pulses have given way to cotton in Maharashtra, Madhya Pradesh and Gujarat. They have also lost out to sugarcane, while in other States they have been replaced by horticultural crops,” he said.
“In Madhya Pradesh, farmers prefer wheat over pulses because of assured prices. Pulses farmers should be incentivised,” he said, adding that the Centre should also undertake efforts to promote research and development.
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