Pulse prices may rise more on festival demand

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Pulses prices are likely to rise by about 5% because of higher demand during festival season amid estimates of lower production in the kharif season this year.

"Stocks are good and imports are taking place at good pace. But, demand of the pulses is expected to rise during Diwali so prices could rise by 5%," Pulses Importers Association of India president K C Bhartiya said.

He said the prices would remain firm as kharif crop production is also less this year.

The retail prices of arhar, chana and moong dal in Delhi have increased a few days before the Dussehra festival began.

Currently, arhar dal is being sold at Rs 52 a kg, moong at Rs 60 a kg and chana at Rs 48 a kg compared with Rs 46, Rs 52 and Rs 40, respectively about a month ago.

According to the government's fourth advance estimates, pulses production is expected to decline by 27% at 4.72 million tonne in kharif 2008 against 6.45 million tonne in the last season.

Main pulses grown during kharif include arhar, urad and moong.

As part of measures to control the high levels of inflation, the Centre has decided to offer four lakh tonne of pulses at a subsidy of Rs 10 a kg.

It has decided to import 15 lakh tonne of pulses to increase the availability in the domestic market. The country is expected to import 30 lakh tonne of pulses both in government and private trade accounts.

Bhartiya appreciated the government's decision to offer pulses at subsidised rates for the benefit of the common man.

India produced a record 15.11 million tonne of pulses in 2007-08 season against an annual domestic demand of about 18 million tonne. The gap is met through imports.