India accounts for about a third of the 60 million tonne a year world pulse trade, which the International Pulses Trade and Industry Confederation estimates to be worth some $100 billion. Pulses - or lentils - carry a weight of 0.72 percent in India's wholesale price index, which remains well above the central bank's medium-term comfort zone of 5 percent.
The government has raised guaranteed prices for pulses by up to 26 percent to encourage planting after a fall in output of about 5.6 percent during 2011/12 and a 14.6 percent slide in this year's summer-sown crop to 5.26 million tonnes. "A drop in pulses output last year and a subsequent fall in the summer-sown pulses output this year has made imports attractive," said Vivek Agrawal, business development manager, India operations at Dubai-based Hakan Agro DMCC.
Total pulse imports are likely to hit nearly 3 million tonnes in 2012/13, according to the average of a poll conducted by Reuters of 10 importers and traders. India imported around 2.8 million tonnes of pulses in the year to March 31, 2012, according to Bimal Kothari, vice-president of the Indian Pulses and Grains Association (IPGA). Agarwal expects India to import around 3.25 million tonnes of pulses in the year to March 31, 2013 - the highest estimate.
For winter-sown chickpeas, known as chana locally, farmers are expected to plant 10-15 percent more because of high prices and favourable weather conditions. Even so, chickpeas imports could jump over 30 percent due to lower stocks with traders following a decline in output in previous winter-sowing season. The government raised the minimum support price for chickpeas, which account for around 40 percent of total pulses output, b y 7 percent to 3,000 rupees per 100 kg in 2012/13.
Imports of chickpeas come mostly from Australia and could touch 300,000-350,000 tonnes between November to January, with totals for the year around 400,000-450,000 tonnes, poll respondents said. "Chickpea imports will rise this year because we are left with very little stock and supplies from the new crop are still around two months away," said Gopal Kogta, director at Kogta Import Export.
Traders are signing contracts for Australian origin chickpeas for January-February delivery at around $650 a tonne on a CIF - delivered - basis at Mumbai port. In Mumbai market local origin chickpeas are available for around $715 a tonne. For yellow peas, which account for over half of India's total pulses imports and come mostly from Canada, purchases from overseas are expected to rise marginally to around 1.5-1.7 million tonnes in 2012/13.