A day after farmers' groups announced their plans to start a new movement to legalise Minimum Support Price (MSP), the Central government has extended the import window for urad and tur. Both kharif pulses are at present trading above their government declared-MSP, but farmer organisations say this move will push down prices. The Centre's decision, taken before the start of the kharif harvest, has come as a surprise to many. According to trade sources, till January-end, the country has imported 7 lakh tons of tur, 5.8 lakh tons of masoor, 1.15 lakh tons of rajma, 66,693 tons of lobia, 1.65 lakh tons of moong, 1.32 lakh tons of chana, 61,027 tons of kabuli chana and 4.89 lakh tonnes of urad. Since last year, the central government has been keeping a close watch on prices of pulses. Measures such as extended import window and stock limits were imposed to control prices. The present decision to extend the import window comes in the backdrop of increased food prices, especially edible oil and pulses. Prices of almost all pulses have now crossed Rs 100/kg with chana (Rs 77/kg) being the only exception. Prices have continued to remain above the Rs 100/kg mark despite numerous interventions. At wholesale markets across the country, urad is trading above its MSP of Rs 6,300/quintal each while tur is trading close to its MSP. At Latur’s market, tur is trading at around Rs 6,500-6,800 Most farmers have decided to hold on to their produce and not sell right now in hope of better prices. For farmers, this decision has came as a shock even as they struggle with increased cost of production and higher fuel prices. Vilas Ufade, director of Latur-based Vikas FPC, said this decision will negate any chances of price correction. “While we are asking for MSP to be made legal, the government on the other hand wants to ensure commodities trade below MSP,” he said. However, Bimal Kothari, vice-chairman of India Pulses and Grains Association, welcomed the move. Kothari said nearly 10-12 per cent deficit in production will now be filled with imports. The association expects nearly 2-2.5 lakh tonnes of tur import from Myanmar. Imports will negate the possibility of further price rise, said Kothari. Given Myanmar has reported a good crop of urad, India will be importing regularly from there.
