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  • 81

    CHAPTER 6

    MARKETING OF PULSES IN INDIA

    6.1 INTRODUCTION

    No other country produces and consumes as varied an array of pulses as

    India. Desi Chick peas, Pigeon pea, Lentils, Mung beans. Black matpe. Horse

    gram. Moth beans^ Kidney beans and several minor pulses are produced. Desi

    chick peas constitute the biggest share of India's pulse production.' Pulses are an

    integral part of Indian agriculture, an important source of protein for its people

    and a significant source of nitrogen for the soil. India is the largest producer of

    pulses in the world with nearly 24% of share in the global production. In domestic

    food grains sector too, pulses occupy a prominent place with 7% share in global

    production. India is also a leading consumer of pulses, but its domestic production

    in recent years has remained stagnant and is short of demand .

    As per the official estimates, the production of pulses in the country is

    estimated to be 15.15 million tonnes in 2006-07, the share of Kharif and Rabi crop

    being 5.78 and 9.37 million tonnes respectively''. Productivity is also expected to

    increase from 441 kilograms per hectare in 1951 to 594 kilograms per hectare in

    2006-07. Although production of pulses is expected to increase in 2006-07, the per

    capita availability of pulses have been falling drastically and has gone down below

    the level of minimum physiological requirement set by the Indian Council of

    Medical Research (ICMR) and the World Health Organization (W.H.O). Since

    pulses are the important source of protein for the vegetarian population and also an

    important item in the diet for the poor people of the country, serious concerns have

    been expressed by the researchers and policy makers in the recent period regarding

    how to increase the production of pulses to meet the future demand and what

    would be the position of demand and supply of pulses in the future if the present

    trend of production continues in India.

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    6.2 DEMAND AND SUPPLY OF PULSES IN INDIA

    India's population is expected to go up to 1,156 million in 2010, 1.279

    million in 2020 and 1.37million in 2030. At the present rate of consumption, the

    demand for pulses would increase annually by 3.3%''. The requirement of pulses

    according to lARI (Indian Agricultural Research Institute) estimates is likely to be

    around 19 million tonnes in 2010, 23 million tonnes in 2020 and 24-26 million

    tonnes in 2030. This will require about 75% increase in the production of pulses

    by the year 2030.^

    The decreasing per capita availability of pulses from 41.6 g in 1991 to 31.5

    g in 2005 in the country has been a matter of serious concern. With assured supply

    of cereals at an affordable price, the main focus of policy makers and researchers

    is now in nutritional security in the country which houses more than one-fourth of

    the undernourished living in the world. Table 6.1 depicts the supply position of

    pulses.

    Table 6.1: Supply Position of Pulses (Lakh Tonnes)

    Crop year Fiscal Year

    1999-2000 2000-01

    2000-01 2001-02

    2001-02 2002-03

    2002-03 2003-04

    2003-04 2004-05

    Gross Production Tur Other Kharif Gram Other Rabi All pulses #Net Procurement Export (FY) All Import (FY) All Supply (FY)

    26.90 21.20 51.20 34.80 134.10 117.30 Negligible 2.44 3.51 118.37

    22.50 22.00 38.50 27.70 110.70 96.9

    23.00 25.70 52.70 30.50 131.90 115.4

    22.10 19.10 41.30 28.90 111.40 97.5

    25.50 28.90 57.50 32.30 144.20 126.2

    Procurement disposal in the same season 1.62 22.32 117.60

    1.51 19.95 133.84

    1.77** 16.85** 112.58

    1.77* 16.85* 141.28

    Source: Directorate of Agriculture and cooperation, (www.dacnet.nic.in) Assumed on the level of 2003-04(FY) ** projected on the basis of data for April-September 2003. # 85% of gross production

    http://www.dacnet.nic.in

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    For calculating the supply, it has been assumed that the entire production

    including Rabi pulses in the crop year (July- June) is available for consumption in

    the following fiscal year. On this basis, supply of pulses increased sharply from

    11.76 million tonnes in 2001-02 to 13.38 million tonnes in 2002-03 (Financial

    year). It may be observed that although gross production of pulses decreased

    sharply from 13.19 million tonnes in financial year 2002-03 to 11.14 million

    tonnes in financial year 2003-04 due to several drought conditions in 2002-03, the

    supply position remained comfortable. As regards demand for pulses, the NSS 55'

    (1999-2000) Round has estimated the direct household consumption of pulses and

    pulses products in the country at 11 million tonnes. The demand for pulses for

    2004-05 has been worked out to be 12.23 million tonnes. It may be noted that NSS

    estimates did not take into account the non- household consumption, which could

    be large in volume. Hence the actual consumption might be higher than what was

    being assessed by the Commission.

    A recent study (Kumar^ and Mathur^l996) has projected the domestic

    demand for different food grains including pulses in India up to 2006-07. The

    projections have been done separately for household demand (only human

    demand) and domestic demand (including allowances for seed, feed and wastage).

    The results of demand projections are presented in Table 6.2. It is evident that

    while the projected supply of all other food grains is above the projected demand,

    supply projection of pulses is much less than projected demand both at the end of

    Ninth and Tenth Five Year Plans. Because of different methods used for projecting

    demand and supply by different authors, there are wide differences noticed among

    different studies

    Table 6.2: Domestic Demand for Food Grains in India (million tonnes)

    1991-92

    (Base Year)

    1996-97 2000-2001 2001-2002 2006-2007

    House Hold Demand

    Rice

    Wheat

    67.1

    50.8

    75.0

    57.1

    81.5

    62.5

    83.0

    63.7

    91.3

    70.9

  • 84

    Coarse cereals

    Total cereals

    Pulses

    Food Grains

    20.3

    138.2

    11.7

    149.9

    21.6

    153.7

    13.9

    167.6

    22.7

    166.7

    15.6

    182.3

    22.9

    169.6

    16.1

    185.7

    24.2

    186.4

    18.8

    205.2

    Domestic Demand

    Rice

    Wheat

    Coarse Cereals

    Total Cereals

    Pulses

    Food Grains

    72.6

    57.8

    28.9

    158.0

    13.4

    171.3

    81.2

    65.0

    30.7

    175.7

    15.9

    191.6

    82.2

    71.1

    32.3

    191.6

    17.8

    209.4

    89.8

    72.5

    32.6

    194.9

    18.4

    213.3

    98.8

    80.7

    34.4

    213.1

    21.5

    234.5

    Source: (Kumar and V.C Mathur 1996) Note:- Domestic demand is equal to household (human) demand plus allowances for seed, feed and wastage, which is taken as 7.6% of gross rice production, 12.1% of wheat, 29.7% of coarse cereals, 12.5% of total cereals, 12.5% of pulses and 12.5% of total food grains.

    Thus the grossing factor used is 1.082 for Rice, 1.138 for wheat, 1.422 for

    coarse cereals and 1.143 for total cereals, pulses and total food grains to account

    for non-household demand. Although there are differences in projections, all

    studies considered for comparison here have shown that future demand of pulses

    would be much higher than projected supply. Further the studies have cautioned

    that the gap between demand and supply would be increasing in future if

    appropriate action is not taken immediately to improve production of pulses.

    It is understood from the projection results of existing studies that there is

    going to be a wide gap between demand and supply for pulses in 2006. However

    the supply projections given by some of the studies appear to be unrealistic and

    also on the higher side while comparing with the present growth of actual

    production of pulses. According to the study by Kumar and Mathur (1996), the

    projected supply of pulses would be 18.2 million tonnes in 2001-02 and 21 million

    tonnes in 2006-07. That is, to achieve the target of 21 million tonnes in 2006-07,

    production should be increased to the level of 0.63million tonnes per annum

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    between 1994-95 and 2006-07. But considering the production performance of

    pulses of the last decade, it would be very difficult to reach the target set by

    Kumar and Mathur. However, on the other hand a most recent study by Shah and

    Mitra^ (1997) has shown an entirely different supply projection for pulses from the

    earlier mentioned studies. This study has projected supply for pulses for different

    alternative scenarios for the year 2001 to 2006 using actual production data from

    1979-1993. According to this study, the supply projection figures vary from 13.80

    to 15.10 million tonnes in 2001 and 15.00 to 16.20 million tonnes in 2006 (Table

    6.3).

    Table 6.3: Supply Projections of Pulses by different Studies

    (Million tonnes)

    Studies 2001-02 2006-2007

    Kumar and Mathur (1996)

    Total Pulses

    Bengal gram {Chand)

    Red gram {Tur)

    18.2

    7.1

    3.3

    21.20

    8.2

    3.8

    Deepak Shah and Mitra (1997)

    Scenario I

    Scenario II

    Scenario

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