Mumbai: India’s decision to extend an export ban on pulses to ease domestic prices that have soared is largely seen as a toothless move, industry officials said.
India, on Monday, extended a ban on pulses exports for another 12 months, the second since it was first clamped in June 2006.
“We had been exporting only around 3% of the total production. So, an extention of the ban will not have any effect on domestic prices,” said Gopal Kogta, president of Pulses Manufactures and Exporters Association of India.
“The market was expecting this decision. Sentiments may change in short term, but prices will remain firm due to the lower production,” said Chowda Reddy, an analyst at Karvy Comtrade.
Prices of pulses, a staple food for most Indians, have risen significantly in the spot market in the country that is the biggest producer and consumer of the nutritious commodity.
In the Delhi market, the spot price of chana, a major pulse, has risen 21% to Rs2,625 per 100kg in last three months. In Mumbai, yellow peas rose 32.3% to Rs2,211 per 100kg in the last one year.
The winter crop output too is likely to fall by 8.8% in 2007-08, against 9.4 million tonnes last year.
To fill the gap between production and consumption India imports pulses, mainly from Australia, Canada and Myanmar. The bulk of the imports consist of yellow peas and its prices have jumped in international market, pushing prices up at home.