Weakening rupee & soaring petroleum prices: Rs six per kg rise in pulses prices likely

Weakening rupee value against dollar and soaring prices of petroleum products are likely to give rise to pulses prices by at least Rs 6 per kg in the mass and retail markets of the country shortly, importers said on Wednesday.
"Though there is no pulses crisis in the country, continuous rise in the petroleum prices and weakening rupee position against dollar are pushing upward the pulses prices. It is inevitable to come about in near future," they added.
They elaborated that rice crisis rose due to lack of interest by the government to regulate local market, and said that fresh crop of pulses had arrived in market. The fresh crop might not ease the situation because recent production was short by half in volume as compared to the last year production, they maintained.
Last year pulses production stood at about 0.75 million tons whereas the recent crop is estimated at 0.35 million tons in the country, they said, adding that it reflected the lack of interest from local farmers because of previous stocks could not earn even cost of production.
"Unfavourable weather conditions, unsold previous stocks, lack of interests from farmers, no support from the government side etc, are the chief factors which have pulled down the level production to half during this season," they said.
Talking to Business Recorder, Anis Majeed, chairman of Karachi Wholesalers Grocers Association (KWGA) ruled out any crisis of the commodity's availability in domestic markets. He held the government responsible for rice crisis as the commodity price touched Rs 100 per kg, saying that concerned department failed to regulate the market in line with the demand and supply relation.
"It is a result of mismanagement by the government. The issue grew out of proportions denoting the loose grip of the authorities on market regulations," he criticised. Urging the government, he said that it should reduce the withholding tax on import of pulses to 0.5 per cent from current 2 percent, adding that it should also put 35 percent regulatory duty on rice exports.
Rice export should not be banned however government should chalk out plans to earn revenue and protect local markets from rice shortage, Anis suggested and said that export of agriculture commodity is the only tool for the country to earn foreign exchange.
He maintained that if the government does not reduce withholding tax, then it should subsidise pulses prices at least by Rs 6 per kg at the import stage. He said that rupee against dollar has weakened by Rs 7 which is enough to give rise to pulses import.The soaring petroleum prices will put negative impact on prices of the commodity in later phases, chairman KWGA anticipated.
The country's pulses demand is some 0.7 million tons and recent production is 0.35 million tons and previous production was 0.75 million tons. The country heavily relies on import of the commodity from Canada, Australia, Ethiopia and Tanzania. Export of pulses has been banned last year, Anis said.