Pulses

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.

Madhya Pradesh may receive rains and thunder showers with “light hailstorm” over the next two days. Rains are likely over Bhopal, Dewas, Guna, Indore, Jabalpur, Jhabua, Katni, Mandsaur, Narsimhapur, Neemuch, Panna, Raisen, Rajgarh, Ratlam, Sagar, Sehore, Shahdol, Shajapur, Ujjain, Umaria and Vidisha districts of Indore in the next 48 hours. Madhya Pradesh is one of the largest wheat producing states in India and rains and hailstorm at this time may damage the mature crop.

India’s pulses imports are likely to nearly halve to 2.5-3.0 mln tn in the financial year starting April due to ample stocks in the country and uncertainty over the government’s policy. In Apr-Dec, 5 mln tn of pulses had been imported. By the end of March, the figure should be 5.5-5.7 mln tn. Concerns that the government may take more steps to limit imports of pulses are also expected to keep imports lower. Traders would not look at tur imports either, as the government is sitting on large stocks.

The Kenyan government has asked India to buy at least 50,000 tn pulses as the country increased production after Prime Minister Narendra Modi last year promised huge purchases of the commodity from East Africa. In 2017-18, total pulses output in Kenya is estimated at 200,000 tn, up from about 100,000 tn produced last year.

A hailstorm and unseasonal rains lashed several parts of Madhya Pradesh and Maharashtra. the hailstorm hit almost 400 villages and could affect the standing wheat, chana and mustard crop. The state government is assessing the impact of the hailstorm, which many said was among the severest in the last few years. Large tracts of farmland were covered with a thick sheet of white after the storm while in some places hail as big as golf balls fell.

Inbound shipments of pulses at Mumbai’s Nhava Sheva port increased over threefold on year in October as traders fear the government may soon impose more restrictions on imports. As much as 485,646 tn pulses arrived at the port in October, 241% more than 142,488 tn in the year ago period. On a month-on-month basis, the rise in imports is almost fourfold. The government early this month imposed 50% customs duty on yellow peas. Traders expect similar action may be taken for chana and masur too.

The Cabinet Committee on Economic Affairs lifted all restrictions on export of pulses. The cabinet panel has also empowered a committee headed by the food secretary to review the import-export policy on pulses and consider measures such as quantitative restrictions (on imports) and changes in import duties depending on domestic production, demand and international markets.

Import of pulses at Tuticorin port surged 100.8% on month to 40,820 metric tonne in September. Imports of peas and masur rose as sales of the new crop have started in Canada, and India is one of its key importers. International lentil (masur) markets continued to soften during the past week as supplies available from exporters and growers remain ahead of the short-term needs of buyers.

India’s rabi sowing has started with the total area under key crops of the season rising to 3.86 million ha till last week from about 3.10 million ha around the same time last year. Sowing of rabi crops is higher this year because late rain over different parts of the country has boosted soil moisture level that supported planting. India had produced 137.2 million metric tonne foodgrain in the rabi season of 2016-17 (Jul-Jun). The total area under rabi pulses was around 1.1 million ha and that under oilseeds was 900,000 ha.

The National Agricultural Cooperative Marketing Federation of India had procured 12,859 metric tonne of urad and 33,976 metric tonne of moong sown during the kharif season across the country, said an official with the federation. Procurement of pulses from growers in Rajasthan, Telangana, Karnataka, and Maharashtra was underway at the minimum support price under the price support scheme. Higher arrivals of the fresh urad crop and low demand from millers had pushed prices below the minimum support price in many markets.

Drought-hit Chhattisgarh has asked farmers to switch to oilseeds and pulses during the upcoming rabi season from water-intensive paddy. The state government has given out advisories asking farmers to sow wheat, maize, mustard, chana this rabi season, as these crops require lesser water compared with paddy. This time around, there not enough water available for paddy cultivation, as water level in Chhattisgarh’s two key reservoirs–Minimata Bangoi and Mahanadi–is running precariously low due to poor monsoon rains.

The government has allowed imports of moong dal and urad dal beyond the 300,000-metric tonne-a-year cap, if importers had made advance payments before Aug 21, the date when the restriction was announced. The norms have been eased as cumulative imports of the two pulses had already touched around 300,000 metric tonne when the government announced the cap and traders, who had made advance payments but not received shipments, were caught unaware. The import of urad dal and moong dal was capped to check the fall in domestic prices amid high supplies.

Sluggish pulse sales to India have some analysts forecasting bourgeoning carryout while others believe there is no cause for alarm. Bulk pea sales are 35 percent below last year’s pace, while bulk lentil shipments are 42 percent behind. Sales are slow due to a myriad of issues in India and fierce competition from the Black Sea region. India is coming off a year where it produced 23 million tonnes of pulses, 20 percent higher than the previous record. It also imported staggering 6.6 million tonnes. India’s pulse warehouses are brimming with supplies.