Indian pulse prices may rise as import slows trade

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Pepper prices to ease on global stocks

Mumbai, Apr 30 : Higher global pulses prices and stock limits imposed by Indian state governments that slowed down imports, along with a fall in winter crop output, may push up domestic prices in next two months, industry officials said.

Prices of a majority of pulses fell sharply in local spot markets in the last one month after state governments raided traders to check hoarding, but are still above last year”s levels.

The federal government in February extended powers of state governments for six months under the Essential Commodities Act, 1955, to prevent hoarding of key commodities to control prices.

Price of chana, a major pulse, fell 7.56% to Rs 2,519 per 100 kg in a month to April 30 at the Delhi market, but higher than around 2,300 rupees a year earlier. The import price of chana in Mumbai port is around Rs 2,750.

“Import is not a feasible option. Prices of pulses are higher by 6 to 12% in the international market,” said

Prem Kogta, a dal miller based in Jalgaon, Maharashtra, who has a procurement centre in Myanmar, a leading exporter of pulses in South Asia.

India, the world”s biggest producer, consumer, and importer of pulses, battling rising prices, allowed duty-free pulses import and banned export in 2006 and extended it till March 2009.

Though there is no stock limit on imported pulses, traders are going slow on imports due to government moves to check hoarding, said KC Bhartiya, President, Pulses Importers” Association of India.

“Government agencies should import more to rein in prices in the domestic market,” he said.

“We may see the impact of lower imports after two months. Prices may go up,” said Chowda Reddy, analyst, Karvy Comtrade.

In April 2007, the government said it planned to import 1.5 million tonne of pulses through state run-agencies. India mainly imports pulses from Myanmar, Australia, Canada, and the US.