Shortfall in Pulses Output to Pressure Food Prices: ASSOCHAM.

Though there has been an increase  in the Kharif pulses production estimated to be 6 MT in 2010-11 as compared to 4.30 MT in 2009-10, the gap in demand supply is likely to be widened further due to change in the consumption pattern both in urban rural areas. .
India is the largest producer of pulses in the world with 25% share in global production and demand of over 18 MT as against the annual supply of around 15 MT and need to import 2-3 MT each year If the production of pulses in the largest producing nation dips, it becomes difficult for the global markets to fill up the gap.

Individual important pulses contribution to the total pulse production include Chickpea 39%, Pigeonpea 21%, Mungnean 11%, Uradbean 10%, Lintil 7%, and Fieldpea 5%.

The Paper says India’s dependency on imports to fulfill growing needs of the country in pulses steadily has been increasing and despite imports the per capita consumption has declined over the years due to endemic shortages in the domestic availability.

Against a per capita availability of 75 grams/day/person in 1958-59, present availability has nosedived below 35 grams/day/person, says the chamber Secretary General, Mr. D S Rawat.

The per capita consumption has consistently declined from the peak of 27.3 kg/year attained in 1958-59 to the current levels of 12.7 kg/year reflecting a negative CAGR of (-) 1.58%, as the overall availability of pulses hardly kept pace with growing population.

Consistently poor availability and higher prices of pulses will eventually change the pattern of consumption and sooner than later substitutes will capture the incremental demand despite growing population. Already stagnant production has led to declining per capita consumption over the years despite imports, which is reflective of the trend in pulses consumption. Given the positive attributes of pulses as an important component in the daily diet, timely action will contain this declining trend in pulses consumption per person.

The paper has pointed out that one of the major supply constraints in pulses is its stagnant acreage over the years. Limited availability of cultivable land, stagnation in cropping intensity due to no growth in irrigation facilities and depleting water resources, have relegated pulses to poor returns/yields. Thus, pulses have gained the status of residual crop during kharif sowing season.

Sluggish growth in yield of pulses over the years is another major reason behind the sluggish growth/stagnation in their production. Even during the green revolution period, the yield growth in pulses remained subdued as the focus was on the major crops like wheat, rice and oilseeds.

Consequently the ASSOCHAM says pulses acreage is restricted to relatively poor and rainfed land, which further inhibits yield growth. Thus pulses sowing take place as a last resort due to lack of ideal conditions for other major crops like grains and oilseeds.

Limited availability of pulses in overseas markets is also a major supply constraint. As the pulses are not an important crop for human consumption in the other major developed and some of the developing economies and are mainly used for feed purpose, the supplies in overseas markets are limited.

International trade in pulses is ruled by dry peas, dry beans, lentils, chick peas, broad, and horse beans. In 2005 approx. 4 million tonnes dry peas were traded followed by dry beans and lentils at 2.4 and 1.4 million tonnes respectively. China, the US, Australia, and Canada are main exporters of pulses. India, Spain, Italy, Bangladesh, and Pakistan are among major importers of pulses.

ASSOCHAM study has revealed that the consumption of pulses is gaining pace among health-conscious consumers in affluent markets, as pulses are rich source of vegetable protein. At the same time in developing countries poor people are shifting to other food items due to high prices of pulses.

The consumption of pulses is largely ruled by India due to lack of purchasing power of other protein rich diet and vegetarianism followed by major percentage of population. The demand compression due to high prices has led to gradual fall in India's per capita pulses consumption.

India also enjoys the status of world's largest producer, but despite that status it has to rely heavily on imported pulses due to greater demand from increasing population. India alone corners a large chunk of global pulses exports.

Source : indiainfoline.com