‘Lift ban on export of pulses’

Source: The Hitavada      Date: 14 Jul 2017 09:06:43


 

Business Bureau,

AFTER skyrocketing to new highs last year, the prices of pulses have nosedived on account of excess supply in the wholesale market. The prices of pulses like moong, mogar, urad and tur dal are selling below the Minimum Support Price (MSP) set by the Government.


“Due to favourable weather conditions and good rains last year, there was a bumper production of pulses in the country,” said Pratap Motwani, Secretary of The Wholesale Grains and Seeds Merchants Association while talking with The Hitavada on Thursday.


He said that the State Government had promised farmers that it would buy pulses at MSP. The Government on its part had tried to lift prices above the MSP by introducing various measures like lifting stock limits on traders, imposing Import Duty of 10 per cent and directly procuring from the wholesale market. The State Government had procured about three lakh tonnes of pulses to support prices from falling. “Even these efforts failed to arrest the falling prices,” he noted. This made the farmers unhappy as their produce could not fetch good prices in the market.


This year, the country produced about 2.15 lakh tonnes of pulses against 1.70 lakh tonnes of last year. Furthermore, the country imported about 30 lakh tonnes of pulses which flooded the market and worsened the supply situation.
Motwani said: “The Government should lift the ban on exports and stop imports to give support to prices from falling in the country”.


The prices of pulses in the Kalamna wholesale market are being quoted as follows: Tur imported (Mumbai) Rs 3,400 per quintal; Tur Gawrani Rs 3,600-Rs 3,800 per quintal; African Tur Rs 2,800-Rs 3,200 per quintal; Tur Dal Rs 4,800-Rs 5,300 per quintal and Tur Dal Fatka Rs 5,500-Rs 6,000 per quintal.


With the introduction of the Goods and Services Tax (GST), the common man would have to pay 5 per cent GST on branded pulses, he noted.
He highlighted that the Sebi had included trading of chana futures on the NCDEX. “Chana is the only produce which is being sold at same price level as the MSP,” he said. The price of chana was being quoted at Rs 5,000-Rs 5,400 per quintal against the MSP of Rs 5,000-Rs 5,100 per quintal. In derivatives exchange, traders would be allowed to buy chana futures without possessing any physical stock. Chana futures trading should be banned as it would lead to speculation and manipulation of prices, he added.