Pulses

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.

At the government’s request, India will make a much needed decision on a new import quota for Myanmar-produced pulses and beans by the end of this month. Myanmar exports 80 percent of its beans and pulses to India. However, due to an oversupply in its own backyard, India last year imposed a quota on all Myanmar imports, resulting in steep falls in the price of locally produced beans. The collapse in the prices of beans and pulses in Myanmar has had a big impact on farmers so the government has asked for a new quota from India so that farmers can export their crops.

Malawi government is exploring possibilities of exporting pulses, mainly tur, to India, but the South Asian country is unlikely to import any as of now. India may not import pulses as of now as supply in the country is already high and the government has been taking measures to curb imports and dispose off stocks.

MMTC offer 670 tn tur imported from Africa, 500 tn chana of Australian origin, and 332 tn masur for auction through NCDEX e-Markets. The pulses are stocked at warehouses in Maharashtra, West Bengal, Andhra Pradesh and Tamil Nadu.

Exports of Canadian peas were down by nearly a million tonnes between Aug. 1, 2017, and Jan. 31, 2018, compared to the same period last year. Total pea exports during the first six months of 2017-18 were listed at 1.037 million tonnes, down 49 percent from 2.022 million tonnes last year. Year-to-date lentil exports were down almost 78 percent at 130,000 tonnes as of Jan. 31, compared to 578,000 tonnes a year earlier. Lentil exports to India as of Jan. 31 were listed at a meager 57,000 tonnes, compared to 312,000 tonnes last year. Lentil exports to Turkey were also down sharply at 38,000 tonnes compared to 127,000 last year. Sales to Bangladesh were listed at zero compared to 86,000 tonnes in 2016-17.

With prices of most pulses ruling below the minimum support price levels, processors and traders have demanded the government to stop even the restricted imports by end of March. India has imposed a quota of 5 million tonnes on annual import of pulses, which if not terminated, will add to the already mounting stocks in the country. Export of pulses, which was not allowed for more than a decade, was also freed up last year. However, both measures did not help much to support domestic prices.

At least five state governments are rolling out innovative schemes to help farmers realise remunerative returns, even as the Centre has started working on a plan to ensure that farmers get minimum support prices for their produce, whether or not the items are procured by the designated agencies.

India may not have to import pulses in coming years as domestic production is rising sharply. Improved our local production of pulses in past couple of years to around 23 mln tn from 16 mln tn with the help of agricultural scientists. According to the second advance estimate of government, the country’s pulses production is seen rising to a fresh high of 23.95 mln tn in 2017-18, from a record 23.13 mln tn a year ago.

Madhya Pradesh may receive rain, thundershower, and hailstorm over the next 24 hours. Rain and thundershowers with chances of hailstorm are expected to occur over Anuppur, Betul, Chhatarpur, Chhindwara, Damoh, Dindori, Harda, Hoshangabad, Jabalpur, Katni, Mandla, Narsinghpur, Panna, Raisen, Rewa, Sagar, Satna, Sehore, Seoni, Shahdol, Sidhi, Singrauli, Tikamgarh and Umaria.