Pulses Import Likely To Dip 14% On High Output.

India’s pulses imports in the crop year 2010-11 (July-June) are likely to fall 14.28 per cent to 3 million tonnes compared to 3.5 million tonnes shipped in the year-ago period.

Higher production in the country will lead to low imports, traders and importers said.

In its third advanced crop estimate earlier this month, the ministry of agriculture said pulses production in 2010-11 could be 17.3 million tonnes, the highest ever. It pegged tur production at 3.2 million tonnes, urad at 1.8 million tonnes and moong at 1.4 million tonnes.

Trade sources and experts put India’s annual pulses demand at 19 million tonnes, out of which nearly 3-4 million tonnes is imported. The country is the biggest importer and consumer of pulses.

“Even if we take the government estimates into considerations, we need to import around 2 million tonnes. But I think by the end of June, we will have to import 3 million tonnes of pulses,” said Neeraj Dhawan of New Delhi-based Mega Grain Trading Company, an importer.

“Yellow peas import will be nearly half of the total imports as it is the cheapest among pulses. As other pulses’ rates were higher a few months ago, traders preferred this variety to market in the country,” said a Mumbai-based analyst.

India imports yellow peas mainly from Canada, Ukraine and the US. Yellow peas demand grew in 2009-10 when consumers started using it as a cheaper substitute to tur dal, which was then priced at Rs 70 a kg.

Even though tur dal rates have nearly halved in past couple of months because of arrival pressure and better production, yellow split peas are still quoting cheaper, at about Rs 15-18 a kg across the country.

State-run trading firms, such as MMTC Ltd has said its pulses import in 2010-11 will be higher.

“We will be importing about 600,000-700,000 tonnes pulses this year (2010-11), up from 300,000-400,000 tonnes imports in the previous year, mainly because of better margins in yellow peas,” said H S Mann, chief managing director of MMTC Ltd.

The trading firms account for about one-fifth of India’s pulses imports while the private do the rest of the shipping.

Many traders opined that the government firm may not import higher in 2011-12 as the government has done away with 15 per cent subsidy provided to them for pulses imports.

Source : sify.com