www.asiatimes.com.au News and Views from Asia Pacific
By Vishal Dagar
[Asst. Prof. of Economics (Agriculture) at Amity University]
Canada, Australia and the USA have brought up a huge-criticisms against India and put pressure over restriction on pulse import in WTO. Ceteris-paribus and considered that earlier India has granted for limited import of pulse to balance the regional price. They have also promulgated indications towards an allegation for excessive import of pulses before 2015-16 than the then expected (for 2018-19) demand of the country, also, releases a statement against India, for conducting practices of procuring the higher amount of pulses than the expected demand to compensate the acquirement of pulses at an increased MSP. Consumption side equilibrium in India shows a 24 MMT pulses a year while production side has already crossed 25 MMT according to data published the government of India. In the most recent two years import of pulses has diminished from 6 MMT to 1.5 to 2MMT every year. So, import limitation is a cardinal approach to give better cost of production to farming community. As moong and urad yields have been maltreated in kharif season due to heavy rainfall, shortage can be remunerated by expanding import amount.
This time again, a short-term hike in MSP was injected in the agricultural economy for the liverish performed farmers. Though, the present situation is dealing with an increasing rate of technically inefficiency of farmers every year, which can not be neglected by only increasing compensation cost in short term of agricultural production. The MOAFW and bureaucrats proclaimed an extended scope with hike in MSP for this rabi arrivals, on Wednesday 23rd October, 2019, which incorporates wheat by Rs 85 to Rs 1,925 for each quintal and for pulses by up to Rs 325 for each quintal. A no choice except to increase MSP, circumstance was arising and left with the only solution to hike MSP, because of climatic impact on the very past kharif production of pulses, this step was taken by the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi. The CCEA has also declared a support in MSPs of all rabi (winter-planted) crops for the 2019-20 gather year (July-June) as recommended by CACP according to MoAFW, the CCEA has affirmed an ascent by Rs. 85 from Rs 1,840 for every quintal a year prior.
The area under of this kharif moong production is practically 11.25 percent lower than a year ago according to most recent first comparison of advance estimates for cultivation against expected, published for the year 2019-20 by MoAFW. Farmers have sown 31.16 lakh ha against 34.25 lakh ha a year ago. It was really a disappointing situation appeared this year for the pulse growers with heavy rainfall in the states like Raj, Karnataka, M.P., Mah, Guj and U.P. The major kharif moong producing states are Rajasthan (18.31 lakh ha against 19.02 a year ago), Maharashtra (3.28 against 4.18 lakh ha a year ago) Guj (0.93 against 0.63 lakh ha a year ago), Odisha (1.64.against1.74 lakh ha a year ago) Telangana (0.71 against 0.73 lakh ha), MP (3.11 against 4.11 lakh ha).
Likewise, shockingly Moong production has been assessed at 2.35 MMT against expected 2.25 MMT for 2018-19. Out of all, kharif production it has been evaluated at 1.84 MMT and rabi at 0.51 MMT. For 2017-18 consolidated (kharif and rabi) last figure for moong has been fixed at 2.02 MMT. Around one lakh ha is said to be washed out by flooding while 15 percent crop in these states are said to be dis-hued because of rainfall. It might help moong prices in coming weeks. Kharif moong cultivation will undoubtedly fallen by 1 lakh MT while deficiency of prices of moong may be felt in Nov – Dec. As of now area under rabi moong isn't growing.
Nafed has offered 2752.51MT moong and 40653.93 MT urad in Odisa, Guj and M.P for moong and Odisa, Guj, U.P.& MP for urad. Out of all out moong offered through delicate around 1471 MT has been passed at around Rs 6000 or more. The acknowledged offers separate for moong in major mandis of Rajasthan is Gharsanea, Jodhpur and Nagore are 500, 200 and 771 MT individually a week ago. It has passed urad offers in Baran at Rs 4101 for crisp appearance on past Monday.
Consistent rainfall thwarted 50 to 60 percent moong and urad crop in flood influenced zones in Gujarat, western MP and in southern segment of Rajasthan (however Nafed sells 470 MT moong in Rajasthan) have expanded worry for ranchers. The IMD has conjectured recently a cyclonic rainfall in mid of this November in these areas. It might clean outstanding yields totally in the areas, where there is a flood like condition. Urad and Moong harvests may endure a great deal and production size would diminish by 1 lakh MT each. It might empower cost of the two items cost of moong and urad may climb by Rs 300 to 500 for every qtl each in coming weeks.
Govt.is likely to extend lime line for pulses import from31st Oct to 30th Nov-2019. If urad price continues to rise, nafed would increase volume for auction. Nafed still has 2.31 lakh MT old urad. Stock duty on masur might be increased from 30% to 60 percent, as proposal for 30% hike has been tabled for Consideration. Decision is expected in by Nov end/ Dec. Nafed has 2.07 lakh MT lentil stock. It would prefer to sell first. New crop start coming in March. Lentil MSP may be hiked to 4800 from Rs4450.CACP has proposed Rs4800. Normally it is accepted by govt.
WTO members like Australia, Canada, the US and Russia have expressed its concern over pulses import policies of India. They would discuss the matter with other members this week.They may ask India to explain why the “temporary quotas’’ have been in operation for more than two years and how they were justified under the global trade rules. They may ask how these would be removed once the restrictions lapsed on March 31, 2020.They have already questioned sugar, rice export policies, procurement& diary sector loan policy too. If issues are not resolved, it may emerge as a major dispute in future.
US Chickpeas area is down by 48% to 0.45 million acres in 2019-20. With above normal yield and abandonment chickpeas production is estimated at 0.3MMT. An important meeting of Cabinet Committee on pulses may decide import quantity of pulses increasing the quantity of urad and extension of time line for pulses import today. Govt may increase urad import quantity from 1.5 lakh MT to 2.5 lakh MT. Import time line might be increased to 30 Nov-2019, previously it was 31st Oct.
In Vijaynagar urad was traded at Rs 5900-6300 per qtl. Quality is said to be good and arrival was reported at over 800 bags. At higher level demand for urad dal may decline. As prices of urad is ruling above MSP, govt may relax import quantity norms in coming months. In Mumbai market urad Faq is being traded at Rs 6300-6400 while in Chennai market it is quoted at Rs 6400-6500. DGFT may allow additional import of urad and tur. DGFT meeting with pulses association/millers are scheduled today. Exporters in Myanmar stopped selling tur and urad ahead of this meeting. Myanmar quotes for both commodities would depend on decision of DGFT.
The commerce ministry has asked pulses importers to finish their import by end Oct-2019.If they fail to do so, their quota allotment would not be valid beyond Oct. In any case date would not be enhanced. Notably, The DGFT had stated that imports should arrive on Indian ports latest by October 31 and the validity period of the allotment will not be enhanced on 11th Sep-2019. Chana prices in domestic market traded unchanged in major consuming centers. Futures traded slightly firm taking clue from seed industry demandand improved offtake by mills ahead of Durga Puja and Diwali.In Delhi chana was traded at Rs 4275-4350. At Mumbai port Australian chana was quoted at Rs4200 while Burmeese origin was traded at Rs4125 per qtl. Sudan, Russian and Ethiopean chana were quoted at Rs Rs4225,4050 & 4125 per qtl. Import quantity is increasing from least developed countries as there is no duty on import from LDC.
At Hapur market, Mustard Seed is trading strong at Rs. 4100-4150 per quintal, up by 0.61 per cent as compared to previous day. Traders reported arrivals at 115, unchanged as compared to previous day's arrival. At Bhind market in Madhya Pradesh, Mustard Seed finished at Rs. 3900-4000 per quintal, unchanged as compared to previous close. Estimated market supply was at 3000 quintals, steady as against previous day's arrival. Mustard Oil finished at Rs. 8200 per quintal, steady against previous close. Mustard Non-Condition at Morena market closed lower at Rs. 3860-3940 per quintal, lower by 0.25 per cent against previous day. Arrivals were reported at 500 quintals, higher by 200 quintals from previous day's arrivals. Mustard Condition at Morena market closed weak at Rs. 4050-4075 per quintal, down by 0.61 per cent as against previous day.
At Agra market, Mustard Condition is trading at Rs. 4333-4405 per quintal, unchanged as compared to previous close. Mustard Kacchi Ghani is offered at Rs. 8400-8450 per quintal, steady against previous close. steady as against previous day's arrival. At Neewai market, Mustard Seed is trading high at Rs. 4150-4200 per quintal, up by 0.6 per cent from previous day's price level. Total arrivals are at 300, down by 100 as compared to previous day. At Jaipur market, Mustard Condition is trading strong at Rs. 4425-4430 per quintal, higher by 0.23 per cent from previous day's price level. Arrivals were reported at 50000 Bags, up by 50000 Bags as compared to previous day. Mustard Condition at Alwar market is offered at Rs. 4200-4300 per quintal, unchanged against previous close. Total arrivals are at 7000 Bags, up by 7000 Bags from previous day's arrivals. Mustard Non-condition at Sri Ganganagar market is quoted strong at Rs. 4000-4125 per quintal, up by 0.61 per cent as against previous day. Trade sources reported arrivals at 300 Bags, higher by 300 Bags from previous day's arrivals.
At Kota market, Mustard Non-condition is trading firm at Rs. 3800-3900 per quintal, up by 1.3 per cent as against previous day. Arrivals were reported at 400 Bags, down by 100 Bags from previous day's arrivals. Mustard Condition is offered strong at Rs. 3950-4050 per quintal, up by 1.25 per cent from previous price level. steady as against previous day's arrival. At Lawrence Road market in New Delhi, Mustard Condition is trading firm at Rs. 4225-4250 per quintal, up by 0.59 per cent as compared to previous day.
Now it’s a high time to escalate the agricultural income growth rate by exploring second best alternative crops for a sustainable (long-run) solution. By upgrading the agro-climatic-zone-wise technical efficiency of the farmers will be helpful in long term to enhance the yield beside an increase in fix income from the agricultural production.
