Prices of pulses, after all calculations, come to only Rs 50-60 per kg. But in India, it is sold at Rs 150-200 per kg
As the common man is forced to skip pulses from their plates, documents show that their scarcity was not linked to underproduction, but to an organised cartel of hoarders and importers from Myanmar to the African continent.
Comparing the minimum support price (MSP) and import price of pulses, even after adding up the cost of processing, transportation as well as profit margins, the cost comes to Rs 50-60 per kg.
According to official documents, the average rate for pulses in the import markets for 2015-16 has been Rs 41.80 per kg. Pulses imported from Canada are priced at Rs 37.32, from Australia Rs 45 per kg and from Myanmar Rs 74 per kg. But in the Indian markets, they are sold between Rs 150 and 200 per kg, at a whopping profit of 150% to 200%.
India annually consumes 23 million tonnes of pulses. While 17-19 million tonnes are produced domestically, 4-6 million tonnes are imported.
Further, the long windows of "no-stock limit" in states of Gujarat and Maharashtra were being used by hoarders to push the prices of pulses. Documents show that Maharashtra's secretary (food & supplies) had lifted the stock limit ban on edible oils and oilseeds on February 11, 2015. On February 14, 2015, pulses were also added to the list.
Chief Congress spokesman Randeep Singh Surjewala on Friday alleged that, with Maharashtra being the largest importer and processor of pulses, this decision led to skyrocketing prices across the country. The decision was reinstated eight months later – on October 20, 2015 -- after the central government stepped in to save the situation. But till then prices had touched Rs 200-230 per kg for tur dal.
Similarly, Gujarat had lifted stock limits on pulses on September 30, 2013, to facilitate trade.
Also, it came to light that importers take delivery of pulses at foreign ports with ships from Myanmar halting at Singapore and also ships from African continents made to slow down to create artificial scarcity. They are later stored in different states, where there is no stock limit.
Feeling the pulse of rising prices
1. India consumes around 23 million tonnes (2.30 crore tonnes) of pulses annually. These include varieties like Arhar (tur), Moong, Masur, Urad and Gram (Chana). India produces 17-19 million tonnes domestically and imports 4-6 million tonnes of pulses annually.
2. The MSP of pulses produced in India varies between Rs 45-50 per kg. Adding 'processing fee' of Rs5 per kg, transportation charges of Rs5 per kg and 10% profit' (Rs.5 per kg), the final 'sale price' does not come to above Rs.60/65 per kg.
3. Average price of 'imported pulses' in 2015-16 is Rs.41.80 per kg (amount of pulses imported divided by price paid). Adding processing fee of Rs.5 per kg, maximum transportation/port charges of Rs 10 per kg and over 10% profit'(Rs.5 per kg), the price stands around Rs 62 per kg.
4. Prices of pulses range between Rs 130 to Rs 200 per kg profiteering of Rs 85/90 per kg. When multiplied by 23 million tonnes of annual consumption of pulses, this figure comes to Rs 2,50,000 crore for a 15-month period between April 2015 and July 2016.
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