Despite increase of production of more than 1 million tonne, the prices of pulses in the country are not going to come down in the near future. This has been attributed to an increase in domestic consumption and in prices of other essential commodities.
As per the recent release of the fourth advanced estimates of the major crop production by the ministry of agriculture, the production of pulses is expected to increase to 15.11 million tonne during 2007-08 from 14.20 million tonne achieved during 2006-7. However, due to growing demand, the country would continue importing around 2 to 3 million tonne of pulses to meet growing demand despite steady growth in production during the last six years. The production of pulses has increased from 11.13 million tonne during 2002-3 to 15.11 million tonne during 2007-8.
“We do not anticipate any softening of prices over the next one year, as prices of related commodities have also increased substantially along with the domestic demand of pulses,” KC Bhartia, president, Pulses Importers Association of India (PIA) told FE.
The severe shortage of pulses has led to a spurt of about 30-35% in retail prices in the last two years, forcing the government to import a record 4.3mt during 2006-07. This year as well, imports would be around 3 – 3.5 million tonne.
The retail prices of pulses, ranging from gram to chickpeas, which was selling at Rs25-35 a kg last year has been selling in the range of Rs 40 – Rs 60 per kg in the retail market.
India is world’s largest producer, consumer, and importer of pulses. In recent months, due to the rising inflation and rise in prices of essential commodities, including pulses in particular, have been of great concern to policymakers.
The prices of pulses edged much higher from Jan 2003 and almost all essential pulses have witnessed extremely higher volatility in their prices, which went up to the extent of over 34% between January 2003 to 2008.