Pulses

The Maharashtra government has sought 15,000 tn of pulses per month from the central government at subsidised rates. In August the Cabinet had approved a proposal by the agriculture ministry that the Centre provide pulses at a discount of 15 rupees per kg on wholesale rate to state governments that would be then sold under the public distribution system. Under this approved scheme, the state/UT (Union Territory) governments are offered to lift 3.488 mln tn of tur, chana, masur, moong and urad at a discount of 15 rupees per kg over the prevailing wholesale market price of the sourcing state on first come first serve basis.

The Madhya Pradesh government will sell 18,000 tn poor and non-fair average quality of chana, masur, and mustard procured in May-Jun. The government is selling the commodity to pay farmers the minimum support price in full. The government was unable to pay the farmers as agencies procured some of the commodities which were of non-fair average quality and were also damaged. The government has, therefore, ordered to auction these pulses and oilseeds and release the pending dues to the farmers latest by Aug 27 into their bank accounts. The total quantity of chana, masur, and mustard procured by the government in 2018-19 is 1.97 mln tn.

The Madhya Pradesh government will sell 18,000 tn poor and non-fair average quality of chana, masur, and mustard procured in May-Jun. The government is selling the commodity to pay farmers the minimum support price in full. The government was unable to pay the farmers as agencies procured some of the commodities which were of non-fair average quality and were also damaged. The government has, therefore, ordered to auction these pulses and oilseeds and release the pending dues to the farmers latest by Aug 27 into their bank accounts. The total quantity of chana, masur, and mustard procured by the government in 2018-19 is 1.97 mln tn.

Export of pulses from the country jumped over two-fold on year to 100,982 tn in Apr-Jun primarily due to improved demand from overseas buyers. Improved demand from the neighboring countries particularly Bangladesh is likely to have led to the surge in the export of the pulses. Guar gum exports were down 6.8% on year to 134,790 tn in the first three months of the current financial year due to a fall in demand.

Export of pulses from the country jumped over two-fold on year to 100,982 tn in Apr-Jun primarily due to improved demand from overseas buyers. Improved demand from the neighboring countries particularly Bangladesh is likely to have led to the surge in the export of the pulses. Guar gum exports were down 6.8% on year to 134,790 tn in the first three months of the current financial year due to a fall in demand.

The Union Cabinet today approved the farm ministry’s proposal to provide pulses at a discount of 15 rupees per kg on wholesale rate to the state governments. Pulses would be provided to states from the stock procured under the price support schemes. Under this approved scheme, the state/UT (Union Territory) governments are offered to lift 3.488 mln tn of tur, chana, masur, moong and urad at a discount of 15 rupees per kg over the prevailing wholesale market price of the sourcing state on first come first serve basis.

Import of pulses at Chennai port rose over sixfold on month in July to 41,856 tn because of higher buys of urad. Imports of urad increased substantially to 32,184 tn in July from 3,888 tn in June and 27,120 tn in the corresponding period last year. Imports of some pulses have seen a revival over the past two months with the start of the new financial year. The government had last year imposed quantitative restrictions annually on tur, urad and moong to curb cheaper imports into the country. Total imports of tur into the country were restricted to 200,000 tn and that of urad and moong were limited to 150,000 tn each.

The government removed export curbs on pulses in November after the domestic production rose. Indias export of pulses have jumped 115.3% on year to 100,982 tn in Apr-Jun, while exports of other cereals also surged 180.1% to 431,562 tn during the same period. However, basmati rise export fell 7% on year to 1.17 mln tn, while non-basmati rice exports rose to nearly 2 mln tn, up 12.6% on year. Indias export of basmati took a hit after the European Union, a major importer, had reduced the permissible limit of tricyclazole residue in imported rice to 0.01 part per mln from 1 part per mln allowed, effective Jan 1.

Exports of pulses have picked up, with volumes exceeding over one lakh tonnes during the quarter, enjoying robust demand from countries such as Turkey, Algeria and UAE. Similarly, volumes in dairy products increased to 35,720 tonnes (23,703 tonnes).

In the state of Madhya Pradesh, the state government has given the relief of lentil mills to eliminate the mandi fee of 2.25 per cent on pulses coming from neighboring states. This relief will be given to pulses only, if the traders bring pulses from other states, they will have to pay the mandi tax.

The Centre is planning to provide 70 million households in selected districts with 2 kg of pulses monthly at a price that is about 50 percent cheaper than market prices. Under this mega sale, the Centre will provide pulses, especially arhar and gram (chana), to states at Rs 35 per kg compared to the average cost of procuring pulses of Rs 50 per kg (for Nafed). It could cost the Centre about Rs 8,000 crore for implementation of such a scheme. Currently, 5kg each of rice or wheat is provided under the National Food Security Act to 81 crore beneficiaries across the country.

The government may extend the deadline for imposition of higher customs duties on 29 products, imported from the U.S. by another 45 days. Among the 29 products are almonds, walnuts and pulses.The Central Board of Indirect Taxes and Customs is likely to issue an amended notification extending the date for the new levy on August 4. While the import duty on walnut was to be hiked to 120 percent from 30 percent earlier, duty on chickpeas, Bengal gram and masur dal was to be hiked to 70 percent from 30 percent. Levy on lentils was to be hiked to 40 percent from 30 percent.

Madhya Pradesh government has rolled back the mandi tax levied on purchase of pulses for milling from other states. The Indore-based All India Dal Mill Association had urged the government to roll back the tax to encourage millers in the state. Mills in Madhya Pradesh were losing business as processed pulses from other states such as Gujarat, Maharashtra and Chhattisgarh were cheaper due to absence of any tax. Mills in Madhya Pradesh had to pay an additional 2.20 rupees on every transaction of 100 rupees as mandi tax.

Food Minister Ram Vilas Paswan said he would look into the import of pulses in which Glyphosate herbicide has been used.

Canada’s farm agency has lowered its estimates for the output of masur and peas in 2018-19 (Aug-Jul) because of a fall in the area under the crops in the country. Production of masur in 2018-19 to fall to 2.38 mln tn compared with 2.5 mln tn, estimated in its June report. Area harvested under masur has been revised lower to 1.50 mln ha from 1.62 mln ha, the report stated. The output estimate for peas has been revised to 3.6 mln tn in the July forecast from 3.85 mln tn. Despite the fall in output, the agency has kept the price forecast for peas and masur unchanged from its June view at $220-$250 per tn and $420-$450 per tn, respectively, due to higher carry-over stocks. Average price for all grades (lentils or masur) and types is forecast to fall from 2017-18 due to Canadian and world supply. There is an expectation that import demand in the Indian subcontinent will continue to be similar to 2017-18. On the export front, shipments of masur and peas in 2018-19 from Canada are expected to remain steady because the July forecast report says an expected sharp fall in demand from India may be partly offset by record imports from China and the US. Canada agency Production estimate for chickpeas or chana has been revised higher in 2018-19 to 335,000 tn from 255,000 tn, as estimated in June. For 2018-19, the area seeded more than doubled from 2017-18 due to higher farm-gate prices received in the previous two years. Saskatchewan (the largest pulses growing region in Canada) is expected to account for 84% of the chickpea area. India used to be the largest importer of peas and masur from Canada but, with the government’s imposition of higher import duties in 2017, sourcing of the pulses from the latter have declined.

The Centre plans to distribute 2 kg of pulses per household under the public distribution system. The government is planning to provide pulses to the beneficiaries under the public distribution system in a bid to dispose buffer stock.

The Madhya Pradesh government has procured about 1.12 mln tn of pulses harvested in the rabi season at minimum support prices as of Thursday to support domestic prices. The state-run agencies have bought 979,943 tn of chana and 128,659 tn masur as of Thursday from around 600 procurement centres in 10 districts.

Around 16 lakh tn (1.6 mln tn) of pulses at present under PSS (price support scheme) and the government has asked NAFED to transfer some stocks to buffer as its size is shrinking. The 2.0-mln-tn buffer stock, created two years back amid extreme volatility in prices, has now fallen to 1.3 mln tn as a part of it was disposed due to low shelf life of around two years.

The Centre has disposed of around 7 lakh tonne of pulses so far from a buffer stock of 20.50 lakh tonne. Around 7 lakh tonne of pulses including tur has been sold so far. The efforts are made in order to clear the old stock and create space for new crop.