India May Extend Pulse Policies

VANCOUVER - Feb 29/12 - SNS -- India may extend current policies affecting the trade in pulses for another year, believes the U.S. agricultural attache for the country.

While India will produce its second largest pulse crop in history, the country will need to continue to import pulses to meet its domestic supply gap. Moreover, because pulses are a key contributor to food inflation, the U.S. agricultural attache believes the government will favor policies which have the potential to lower rather than increase prices.

"Pulse consumption in 2012-13 is forecast to increase to 19.5 million metric tons (MT)," the U.S. agricultural attache said, "due to continued strong domestic demand, sufficient domestic supplies (near record production and large carryover stocks from 2011-12) and expected stronger imports. Consumption in 2011-12 is estimated at 18.5 million MT, including 3.0 million MT of imported pulses."

India is a predominately vegetarian country, with the result pulses are an important source of dietary protein. They are also one of the cheapest. One kilogram of any pulse can be the protein source for three to four meals for a family of five.

However, due to increasing demand and purchasing power of Indian consumers, market prices of pulses in the last few years have been relatively high compared to cereals, vegetable oil, vegetable, fruits, and other foods. Moreover, per capita consumption has been trended lower for several decades because domestic production has not kept pace with the growth in consumption.