Final imports of tur pulses could end at only half the announced quota of 4 million tonnes after New Delhi declined to extend the purchase deadline beyond October 31.
"This can reduce tur imports to about 1.5 lakh tonnes to 2 lakh tonnes against the quota of 4 lakh tonnes as traders haven't been able to sign enough import contracts so far," said an industry source.
Importers had requested that the government extend the last date, now set end-October.
Suresh Agarwal, president, All India Dal Millers' Association, said: "We had met commerce minister Piyush Goyal on August 26 and requested him to extend the last date of imports by about 3 to 4 months. Due to various reasons like heavy rains, availability of ports etc, there were major delays."
Domestic prices of pulses have been trending below the state-set minimum support price (MSP) as government agencies such as Nafed (National Agricultural Cooperative Marketing Federation) have been off-loading pulses below MSP.
To hold down consumer prices, the government had allowed import of 1.5 lakh tonnes of moong and urad each, and 4 lakh tonnes of tur (pigeon pea).
Pulses analyst Rahul Chauhan said: "Market prices are ruling below MSP due to selling by government agencies. However, there is also the bigger problem of heavy import of yellow peas - much above the permitted quota."
Some importers have moved the court to bring in pulses in excess of stipulated quotas. Trade sources said that yellow peas are also coming to India via Nepal and Bangladesh, violating trade agreements.
Source: economictimes.indiatimes.com