Agriculture Market News : Lack of Production may Increases Pulses Prices
Pulses price may increase again owing to the lack of focus on increasing production from local sources amid rising demand. According to a recent study done by Kotak Institutional Equities, only 2.69 million hectares (12 per cent) of the total sowing area of 22.26 million hectares are under irrigation.
Area under irrigation is important because pulses’ output is certain such areas irrespective of climatic condition. This leaves 88 per cent of the area dependent on rainfalls. In October Tur prices had hit Rs 200 a kg in retail in major cities. Globally, prices of pulses increases every few years. The price increases when either demand rises or supply fails to keep pace with demand.
Demand for pulses has been increasing as the per-capita incomes rise and people improve their dietary pattern. Supply has remained same at 17-19 million tonnes annually from the past few years as yields stagnate and area under sowing remains same.
Only six per cent of Tur area under irrigation as a result Tur remains the worst-hit among all pulses. Pulses varieties productions are afflicted by the problem of lack of irrigation. The average size of pulse farms in India is one hectare compared to 178 hectares in Canada. Indian yields at 700 kg a hectare are less than half of Canadian yields.