Racing pulse over chana import
The Centre could be forking out a bigger pulses import bill this year with the trade estimating production of chana during 2006-07 at 5.2 million tonnes, as compared to an earlier estimate of 5.7 million tonnes.
By Prabha Jagannathan, TNN |
NEW DELHI: The Centre could be forking out a bigger pulses import bill this year with the trade estimating production of chana during 2006-07 at 5.2 million tonnes, as compared to an earlier estimate of 5.7 million tonnes.
The latest trade estimate is far lower than the government’s latest production estimate of 5.9 million tonnes, indicating that supplies will remain tight and prices firm. Since domestic production is unable to meet growing demand, pulses worth more than Rs 2,500 crore are imported annually.
While rabi pulses which were expected to make up significantly for the low kharif pulses production in 2006-07, revised trade estimates have pegged total domestic supply (including imports of around 0.01 million tonnes and opening stocks) at only 5.3 million tonnes, as compared to 5.8 million tonnes earlier. The opening stocks of chana this year are at a low of 0.02 million tonnes.
Sources said the revision of estimates was necessitated by a number of factors including an apparent 5% drop in production compared to the first estimates. Major drop in production was witnessed in both key producer states like Madhya Pradesh and Maharashtra.
According to trade sources, the crucial February-April period for chana — as it nears harvest — was marked by sharp weather anomalies, forcing a revision of earlier production estimates. While there was more than normal rainfall in chana regions of Uttar Pradesh and Rajasthan, Maharashtra and Madhya Pradesh saw uneven distribution of rainfall. Untimely rains in states such as Uttar Pradesh also led to lowering of the production estimates.
ADVERTISEMENT
It is Madhya Pradesh, which worries most the government due to fall in production. Here, although acreage went up under chana, uneven distribution of rainfall resulted in a lower yield. “The other disappointment comes from Maharashtra. The sowing data suggested a produce of one million tonne but, post harvest, the numbers were marked down to 0.8 million tonnes as arrivals did not gather momentum during the peak season,” sources said. Above-normal rainfall delayed harvest in Rajasthan too, but the increase in water availability improved the yield significantly and prompted commodity experts to revise the chana production in this state from an earlier projection of 0.6 million tonnes to 0.8 million tonnes.
Then there are yellow peas, the cheap substitute for chana. Unlike last year when significant imports were made to keep the price of pulses in check, the price for yellow peas shot up between November 2006 and March 2007.
La Nina conditions in Australia — a key source of imports for both chana and yellow peas — and Myanmar are expected to bring in rainfall and ease up the situation. Weather conditions developing in the region are expected to map out the imports course for the government here.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
