India losing Bargaining Power in Global Pulses Trade

India loosing 'Bargining Power' in Global Trade


List of Countries Importing more than 10,000 tons

of Pulses per year



Compiled By:
Vijay Sardana
Commodity Market and Agribusiness Expert



Government of India is claiming there is 50% more area under pulses cultivation. Let us assume that this will yield as per the expected performance. This will increase our pulses by about 2.5 million tons.  Even after the better MSP and more area under pulses, India will remain net importer. According to my calculation, India will be deficit by 5.6 million tons even after considering improved Rabi output. This can only be bridged provided we have technologies which can improve the yield by at least 50% on an average all over the country. This development is not visible on horizon. 

Pulses are becoming popular all over the world. India is only 30% of the world market and shrinking. 

It is strange to see as the largest buyer of the product, India is not able to develop good relation with sourcing countries and in fact recent policy announcement also suggest that policy makers are not fully aware of the ground reality. This is a classic case where the buyer is trying to behave like monopoly. Statements like Stock limits for imported consignment, hoarding outside India, fixing the finished goods prices when raw material is facing inflation, are some examples of statements which is creating odd situation for India. 


Please read my earlier blog on pulses and you will see that it was mentioned long back why current mindset of government will not help in addressing pulses crisis.

Importers
2011
2012
2013
2014
2015
Imported quantity
Imported quantity, Tons
Imported quantity, Tons
Imported quantity, Tons
Imported quantity, Tons
World
       12,192,694
       13,100,000
       14,110,123
       15,729,810
       15,854,505
India
         3,221,937
         3,815,735
         3,800,859
         4,517,340
         5,413,892
China
            790,029
            742,291
         1,106,173
            863,041
         1,001,873
Egypt
            444,105
            408,499
         2,497,771
         1,601,414
            864,911
Bangladesh
            451,419
            516,133
            816,586
            903,102
            802,654
Congo
                 4,233
                 7,436
                 5,204
                 4,160
            637,618
Pakistan
            613,249
            591,992
            433,999
            591,764
            579,728
Turkey
            401,258
            272,186
            335,897
            450,149
            479,364
United States of America
            322,090
            331,416
            361,331
            519,779
            438,608
United Arab Emirates
            300,000
            322,760
            435,371
            439,788
            401,343
Italy
            287,173
            277,218
            296,094
            309,144
            312,102
Sri Lanka
            226,134
            177,929
            200,000
            228,721
            261,519
Spain
            300,649
            406,092
            275,900
            253,238
            220,959
United Kingdom
            221,651
            225,208
            229,328
            238,212
            214,834
Brazil
            269,691
            370,036
            373,725
            190,770
            208,676
Kenya
            104,530

               74,624
               89,700
            199,700
Algeria
            250,849
            176,487
            264,030
            192,124
            188,090
Saudi Arabia
            148,132
            156,159
            165,682
            190,947
            183,076
Sudan (North + South)
               71,060
            126,375
            145,436
            142,695
            170,553
Germany
            147,407
            117,464
            164,619
            167,620
            150,130
Canada
            101,682
            105,613
            116,374
            151,349
            145,976
Mexico
            171,870
    
            197,931
            173,511
            139,821
Colombia
            146,290
            138,028
            118,613
            136,168
            135,596
Belgium
            140,454
            148,102
            175,599
            158,169
            130,196
Japan
            148,932
            150,905
            132,831
            134,826
            128,054
Viet Nam
               12,988
               13,000
               20,000
               63,319
            116,383
Malaysia
            105,584
               97,556
               97,515
               92,985
            105,848
France
               98,308
               95,245
            107,066
            103,941
            105,157
Norway
            111,583
               69,014
               81,620
               97,937
            102,384
Peru
               73,482
               78,040
               71,739
               81,253
               92,206
Cuba
               83,756
               77,500
            100,771
            115,738
               76,967
Philippines
               81,603
               80,204
               80,408
               80,013
               72,292
Netherlands
               90,764
            125,538
               91,811
               90,585
               68,843
Jordan
               57,216
               56,438
               61,388
               62,078
               66,486
South Africa
            111,787
            108,164
               76,464
               75,321
               64,922
Iraq
               84,343
               80,026
               85,588
            112,003
               64,884
Ethiopia
               38,789
               22,091
               24,098
               33,472
               61,956
Portugal
               58,868
               58,912
               65,567
               73,212
               55,877
Angola
               50,588
               43,643
               56,906
               58,990
               54,723
Taipei, Chinese
               61,177
               54,384
               58,704
               51,218
               53,144
Indonesia
            108,113
            102,062
            129,171
            132,116
               49,917
Korea, Republic of
               56,848
               53,164
               50,694
               70,162
               49,312
Nepal
               56,441
               60,781
               91,955
            102,346
               47,168
Yemen
               40,348
               49,874
               57,057
            130,632
               46,244
Venezuela, Bolivarian Republic of
            113,545
            181,799
            135,139
            172,182
               45,920
Thailand
               32,128
               35,424
               35,424
               49,792
               41,858
Djibouti
               19,394
               17,745
               25,505
               20,560
               39,233
Costa Rica
               40,055
               44,983
               38,950
               41,354
               38,184
Russian Federation
               42,326
               29,353
               36,287
               44,536
               33,893
Lebanon
               35,020
               35,601
               41,581
               43,781
               32,526
Greece
               34,786
               34,060
               28,605
               29,580
               29,658
Haiti
               26,019
               15,179
               12,201
               24,293
               28,930
Kuwait
               25,732
               23,264
               25,728
               28,495
               26,519
Bulgaria
               23,817
               31,436
               29,838
               26,720
               26,229
Ecuador
               26,831
               24,093
               26,713
               25,646
               25,643
Romania
               25,059
               30,417
               26,040
               25,766
               25,592
El Salvador
               44,755
               29,827
               14,736
               10,928
               23,355
Switzerland
               17,279
               14,000
               21,619
               21,302
               22,766
Syrian Arab Republic
               19,921
               19,541
               11,162
               17,680
               20,612
Denmark
               20,096
               16,183
               17,583
                 9,342
               20,138
Qatar
               18,475
               21,622
               23,531
               25,261
               19,811
Czech Republic
               13,987
               13,971
               15,818
               16,033
               19,481
Singapore
               18,703
               17,830
               17,367
               18,339
               18,868
Hungary
               16,089
               13,210
               14,935
               15,961
               18,196
Oman
               12,569
               12,135
               16,818
               15,515
               17,279
Guatemala
               30,518
               16,293
               11,787
               11,679
               17,028
Serbia
               15,215
               18,613
               15,494
               16,053
               16,967
Australia
               14,982
               12,321
               14,048
               13,586
               15,753
Poland
               19,572
               17,069
               20,185
               23,793
               15,654
Tunisia
               20,885
               12,773
                 9,957
               18,554
               15,186
Honduras
                 6,200
                 2,250
               11,427
               14,096
               13,770
Latvia
                 3,241
                 1,752
                 1,481
                 1,840
               13,210
Panama
               12,873
               12,122
               11,225
               10,952
               12,967
Myanmar
                      55
                    668
                    707
                 4,244
               12,703
Mauritius
               12,201
  No Quantity 
               13,594
               12,845
               12,445
Trinidad and Tobago
               12,089
               10,906
               11,981
               12,276
               12,167
Hong Kong, China
               10,204
                 8,979
                 8,612
                 8,646
               11,259
Lithuania
                 4,280
                 2,265
                 3,200
                 4,685
               11,025
New Zealand
                 9,654
                 9,672
               10,603
               11,671
               10,963
Bahrain
                 8,240
                 8,363
                 9,746
               10,178
               10,929
Austria
                 5,883
                 6,905
                 9,596
                 8,195
               10,686
Morocco
               14,617
               16,016
               15,803
               22,099
               10,509

Please Note: India is only 30 % of the world market. World consumption of Pulses is increasing.  If government will create problem for international trade in the name of hoarding, international supplies will dry up. It will be useful for government to understand the ground reality. International market will not work as per the wish-list of government policies of India. International suppliers will divert their trade to other markets.

Policy makers must accept the ground reality:

Undersigned had already submitted a detailed action plan for Government of India’s consideration. There is no alternate with Government of India but to consider proposed action plan. It is just matter of time before they do it. How long they will take to understand the ground reality it is up to the government departments.

Government must involve stakeholders to address pulses crisis, otherwise it will be more complex with every passing day and year.

Current thinking is not going to work. There is no harm in thinking out of box to address serious issue of quality of governance. Food inflation led by Pulses will nullify all the gains for the ruling political leadership in centre as well as in states.

With best regards,



Vijay Sardana


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