Govt may import more pulses for PDS.

Despite hopes of a good rise in pulses production in 2010-11 crop marketing season because of strong kharif harvest and rise in area under rabi pulses, the government is believed to be mulling to import around 9,00,000 tonne of the legume till March 31, 2011 a rise of 3,00,000 tonne from its earlier target of 6,00,000 tonne import.

Sources said the extra import will help the government to distribute more pulses at cheap rates through states under its subsided sale scheme. Till now in 2010-11 financial year, states have lifted around 5.5 lakh tonne of pulses as against the allocated 6,00,000 tonne, thereby necessitating the extra imports.

In November 2008, the government had launched a scheme for supplying of imported pulses by public sector units to the state government at the subsidy of Rs l0 per kg for distribution through PDS.

In 2009-10, four agencies viz PEC, MMTC, STC and NCCF supplied imported pulses to nine states namely West Bengal, Tamil Nadu, Kerala, Maharashtra, Haryana, Himachal Pradesh, Uttar Pradesh , Rajasthan and Andhra Pradesh.

India's annual pulses production has been stagnant at around 14 million tonne to 15 million tonne, but demand is 18-19 million tonne. To bridge the gap the government generally imports pulses mainly from Myanmar and Australia.

Since the last few years the government has been trying to raise pulses production the country, but has met with little success as the crop faces stiff competition for acreage from wheat and rice.

Erratic monsoon and low returns have also limited any sharp growth in pulses output. Sources said absence of any big breakthrough in pulses seed is also preventing any sharp rise in output.

The government has also introduced a number of schemes including the National Food Security Mission to increase pulses production by raising their cultivable areas.

For the 2010-2011 kharif season, the government hiked the minimum support price of arhar by 30% to Rs 3,000 per quintal, that of moong by 15% to Rs 3,170 per quintal and urad also by 15% to Rs 2,900 per quintal, along with announcing an added incentive for selling pulses to state procurement agencies. The MSP of rabi pulses was also increased substantially.

Recently, the government also appointed National Cooperative Consumers Federation of India (NCCF) and Central Warehousing Corporation (CWC) as central agencies,in addition to Nafed, for procurement of oilseeds and pulses under the price support scheme (PSS) of Government of India. The nomination of NCCF and CWC as central agency has been made with a view to engage more players for effective implementation of PSS operation

Meanwhile, sources said the government is also planning to extend the ban on export of pulses beyond its due expiry date of March 31, 2011 along with keeping import duty at nil beyond its current expiry date also of March 31, 2011.

The proposals are expected to discussed in a empowered group of ministers meeting to be held shortly.

Source : FinancialExpress