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‘One of the biggest failures of public policy has been the inability to step up production and availability (including imports) of pulses. It is a tragedy that in a country almost entirely dependent on pulses as a source of protein, the daily per capita consumption has gone down in a 50-year period (1957-2007) from 72 gm to 36 gm. The agricultural revolution has completely by-passed pulses. The worst is yet to come and the nation will pay a heavy price for this neglect.’ S.S.Tarapore |
Consumers of pulses, especially tur (arhar), mong and urad, are feeling the pinch because of significant rise in prices during the last two months. The situation may not improve much in the near future unless the government makes some drastic changes in the pulses policy. |
According to a recent paper presented to the ministry of agriculture by the National Centre for Agricultural Economics and Policy Research (NCAP), the minimum support price fixed on the basis of cost production rather than demand and supply and liberal polices of ‘zero duty on import’ are obstructing production of pulses in the country. |
NCAP’s paper titled ‘Price and Market Intervention in Pulses’ said the ban on export of pulses except kabuli chicpea despite the country’s competitiveness is posing an hindrance in increasing the production of pulses, considered as the vitamin supplement of poor people. |
According to NCAP, the country imported close to 3 million tonne of pulses worth Rs 5649 crore during 2007-08 while the domestic production was 14.76 million tonne during same period. |
The NCAP paper also identifies that growing pulses is less profitable compared with other crops and it has become a hurdle in increasing production.
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“With the pulses being grown by 70% of small farmers and 18% of medium farmers, the government must provide support for seed multiplication and change MSP regime is in parity with the retail prices for augmenting yield,” PK Joshi, director, NCAP, told FE. |
He said the outlook for tur in India is quite bleak, as against an annual demand of 5 million tonne the country produces only around 3 million tonne. “We can not even substitute chana with tur,” Joshi, who prepared the paper, said. |
Tur has huge demand in southern and eastern parts of the country while chana is taken mostly in northern India. The country mostly imports tur and urad from Mayanamar and Ghana and other African countries such as Kenya, Tanzania, and Mozambique. |
An analysis of tur dal retail prices in Delhi sourced from the department of consumer affairs this year indicates that the prices have risen to Rs 95 per kg on Friday from Rs 50 reported on January 1, 2009, an increase of 90%. With kharif acreage under pulses going down in India, the situation has been aggravated by the lack of availability of pulses in the global market. |
The NCAP paper also predicts a supply shortfall of around 2.26 million tonne by 2011-12, which would rise to 6.8 million tonne by 2020-21. The paper also anticipates increase in per capital consumption of pulses from 9 kg per year during 2004-5 to 10.9 kg by 2020-21.FE: Aug 10, 2009 |
Pulses consumption drops as prices go up- Assocham : |
| Households have curtailed consumption of pulses in the first half of this year due to high prices, a report brought out by the Associated Chambers of Commerce and Industry of India (Assocham) has said. |
The per capita consumption of pulses declined to 11 kg in the first half. In contrast, the per capita consumption in the 1960s was 27 kg. |
Yield declines : |
A factor responsible for this situation is that no serious attention has been paid to increase pulses production, especially under the National Food Security Mission, which focused more on wheat, rice, millet and corn. Efforts were made to increase the yield of these crops at the cost of pulses, the report said. |
As a result, the yield for a hectare declined and in turn, production has been hit. The situation has resulted in prices doubling during the last one year.
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The Assocham said it is likely that the per capita consumption could decline to near nine kg in the later part of the year since it is unlikely that the soaring prices will be checked. |
| Prices rule high : |
Currently, tur or red gram is quoting around Rs 100 a kg, while prices of other lentils are also ruling higher on fear of the deficit monsoon affecting pulses production. |
| The report, released by Assocham’s Secretary-General, Mr D.S. Rawat, said the area under pulses crop was not increasing and the growth in yield was sluggish. |
The compounded annual growth rate (CAGR) of pulses during the last five decades has been a meagre 0.9 per cent. |
| In fact, until 2007-08, production never topped 14.91 million tonnes (mt). During 2007-08, production clocked a record high of 15.1 mt. |
| Imports : |
| The country is well short of demand and has to resort to imports. |
| Increasing demand for pulses on account of rising population has led to imports increasing to over 20 lakh tonnes during 2008-09 from 4.6 lakh tonnes during 1998-99. |
| During the last two decades, total pulses availability in the country increased only 1.39 per cent (CAGR), the population has increased by 1.8 per cent. In contrast, pulses imports have grown (CAGR) 10.38 per cent. |
| Low import tariffs have helped increased imports, including the June 8, 2006 decision of allowing pulses shipments into the country duty-free. |
| Sizeable quantities of chick peas, dry beans, dry peas, besides tur, urad and moong, are being imported from countries such as Canada, Australia, the US and Myanmar. |
| Canada and Australia are factoring in Indian demand in the production plans and have been successful in exploiting the situation to their advantage, the report said. |
| Canada accounts for 40 per cent of total pulses imports into India, while Myanmar accounts for 27 per cent. Australia’s share is nine per cent, while that of the US is six per cent. |
| Besides, countries such as Ukraine, France, China and Tanzania also supply to India, the report added. KRSR/140809 |
