Pulses Exports May Touch 3.5 Lakh Tonnes

During April-January 2006-07 alone over 3.19 lakh tonnes pulses were exported thereby leading to rise in domestic prices of these commodities and push up inflationary pressure further. According to the source, total export of pulses may touch a staggering 3.5 lakh tonnes during 2006-07. Unscrupulous traders, according to sources, took advantage of the steep increase in international prices of gram, arhar, moong and urad dals. Prices of four major pulse items virtually doubled in international markets like Australia, Pakistan, Tanzania, Myanmar, China and Thailand during last two years.
For instance, the price of gram sent up to US $ 570-580 by March 2007 as against US $ 300-303 per tonne during corresponding month in 2005. Similar is the case of arhar dal that was quoted at US $ 470 - 480 per tonne in March 2007 as against US $ 300-325 in March 2005. Similar is the kind of price surge reported in both Moong and Urad making it attractive for the traders to export. A large chunk of exports, according to sources, were undertaken by traders after getting the old Letters of Credit extended to beat the ban. Following the ban, no fresh letters of credit were to be opened after June 22, 2006. Hence, the pulses exports were undertaken against old LCs, sources divulged.

Interestingly enough, official figures compiled by the government, put the export of pulses at a much lower one lakh tonnes after a ban was imposed effective from June 22, 2006.

Sources divulged that the investigative agencies have zeroed in on information that would establish the nexus between two high ranking politicians, banks' representatives and traders that undertook export of pulses even after a ban was imposed. Only on March 9, 2007 that the Directorate General of Foreign Trade (DGFT) plugged the loophole and closed the window "transitionary arrangement" that was misused by traders to export pulses despite the ban.

Further, even now, the Government is entertaining a proposal to permit the export of pulses against pre-import of raw material. Sources divulged that the panel of secretaries led by Cabinet Secretary did not take a decision to allow export of pulses following apprehension that this may lead to stepping up of charges by opposition parties that this would fuel inflation further.