NEW DELHI: The Centre could extended the ban on pulses exports until March 31, 2011 besides allowing duty-free imports for another year. It is also expected to extend the subsidised pulses distribution scheme by another year until March 31, 2011.
The decisions are likelBoth the ban on exports and the permission to import pulses duty free were to expire by March 31 this year. The extension for both deadlines comes in view of persistently high prices for pulses in the country, despite an estimated two million tonne import this year to bridge the gap between an annual demand of around 18 m tonnes and a much lower local production of only 15 m tonnes.. In June 2006, the government had removed the 10 per cent import duty on pulses and banned exports for one year. The decisions were extended from time to time in tandem with close monitoring of pulses prices.
The decision to extend the time limit for both the export ban and for duty free imports comes soon after the government scrapped an agreement with Myanmar to import pulses after that country demanded cash payment in advance instead of allowing the issue to be settled through balance of trade as India wanted. In government-to-government trade deals, accordign to officials, advance cash payment was in violation of accepted norms and rules. However, the development makes things far tougher for India since global trade in pulses is very narrow compared to that of foodgrains, oilseeds etc. India is the world’s largest producer and consumer of pulses, making signals of big imports from her government an open invitation to sellers to jack up prices inordinately. .
With a view to alleviating the problem of access to reasonalbly priced pulses easier for the eeonomically weaker sections, the Centre is also likely to continue supply of four lakh tonnes of pulses at subsidised prices through fair price shops till March 31 next year.
PSUs and co-operatives, which import the most pulses both on behalf of the government and on commercial account (and then sell to private trade by tender process) claim reimbursement for 15% of their losses from the government currrently. In view of hefty losses made regularly on their pulses operations,. MMTC, STC, PEC, Nafed and NCCF had requested the Centre to hike thier reimbursemnt percentage but it has thus far fallen on deaf ears. .The agencies imported some 544,000 tonnes of pulses this fiscal from from Myanmar, the US, Canada and Tanzania, with Canada (Sasketchewan Province mainly) accounting for almost half of India’s pulses needs. Others who export to India include Australia.
Source : The Economic Times