Pulses

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.

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.

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.

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.

The steepest hike was for chana, for which the government increased the support price by 400 rupees to 4,400 rupees per 100 kg. Support price for masur has been raised by 300 rupees to 4,250 rupees per 100 kg.

Late rains in different parts of the country are likely to boost sowing of rabi crops. The country’s rabi production may also surpass last year’s level. India had produced 137.2 million metric tonne food grain in rabi season in 2016-17(Jul-Jun). However, late rains might have caused minor damages to kharif sown crops, which the government had factored in its first advance estimate. Farmers in the country are likely to harvest 134.67 million metric tonne of kharif food grain in the current crop year, down from a record 138.52 million metric tonne harvested in 2016-17.

Production of rabi pulses in India is expected to offset the fall in output during the kharif season. In its first advance estimate for 2017-18 (Jul-Jun), the government pegged kharif pulses production at 8.71 metric tonne, down 7.5% on year. Last year, we produced around 6.5 metric tonne more pulses. If pulses in the Kharif (this year) somehow lagged, we may try to compensate it in rabi season. In 2016-17, India produced 22.95 metric tonne of pulses, higher than 16.35 metric tonne the previous year.

The Centre has approved the Gujarat government’s proposal for procurement of moong and urad crop grown in 2017-18 (Jul-Jun) kharif season. The central government has given approval for procurement of 16,000 metric tonne moong and 20,750 metric tonne urad from farmers in Gujarat at the minimum support price. The government spend 2.01 billion rupees to procure the pulses. The government has decided to procure the pulses as their prices have fallen below the MSP in key markets of the state Minimum support price for urad in 2017-18 was fixed at 5,400 rupees, including a bonus, and for moong, it was fixed at 5,575 rupees, including a bonus. The government had approved procurement of these pulses in Maharashtra late last month.

Purchase of moong, urad and soybean has started in 101 purchase centres in the state and efforts are being made to seek the government’s permission for purchasing groundnuts.

The government is likely to give a subsidy of 15-18 rupees per kg on pulses to be sold from its buffer stock to Gujarat, Karnataka and Tamil Nadu. The Committee of Secretaries in a meeting have decided on the subsidy of 15-18 rupees. The states had recommended a wide range of subsidy starting from 12 rupees and Karnataka had requested the highest quantum of 18 rupees. The government is likely to offload 700,000 metric tonne pulses from its buffer stock in the coming days. Of this, 350,000 metric tonne be sold to state governments and the rest is expected to be sold through open market sales scheme. Out of the 1.8 million metric tonne buffer stock of pulses, government sell 350,000 metric tonne to these three (Gujarat, Karnataka, Tamil Nadu) states and (another) around 350,000 metric tonne through open market sales scheme.

Fumigation exemption granted to Canadian pulses exported to India remains expired after 12 days. Normally this exemption is renewed within three or four days.Canada pulse industry association looking for an Indian government memo announcing the extension.

Enthused by the positive outcome of delisting fruits and vegetables from the ambit of Agricultural Produce Market Committee Act, 1963, Maharashtra has proposed allowing direct marketing of pulses and oilseeds as well. The state government has appointed a committee to study the pros and cons of delisting pulses and oilseeds and asked it to submit a report in three months. Delisting pulses and oilseeds from the APMC Act likely ensure remunerative prices for farmers. However, with the delisting, farmers are free to sell their produce to anyone in the country who offers competitive prices. Keeping pulses and oilseeds out of the ambit of APMC Act may help shore up domestic prices of these commodities that have slipped below the minimum support price in many places.