India’s Department of Consumer Affairs has begun to float tenders four times a week to procure imported red lentils (masoor whole) as part of the Centre’s efforts to rein in prices of pulses. However, the process of these tenders has left the trade a little bitter.
The tenders are floated through the National Agricultural Cooperative Marketing Federation of India (Nafed) and National Cooperative Consumers Federation of India (NCCF). While Nafed issues tend,ers on Mondays and Wednesdays, NCCF does it on Tuesday and Thursday.
The tenders are being issued from August 23. A tender inviting bids, seen by businessline, said non-genetically modified organism lentils of the 2022 crop year are to be delivered on to designated warehouses. The minimum bid quantity is 5,000 tonnes and thereafter in multiples of 500 tonnes. The maximum quantity that will be purchased is 20,000 tonnes combined at all locations.
Fist cancelled
Once the tenders are bid, it is for the Department of Consumer Affairs to accept or reject it, the tender document said. The Government is looking at Canadian, Australian or any other overseas origin. The lentils could be delivered at eight locations including Mundra, Kandla, Hazira (Gujarat), Visakhapatnam and Kakinada (Andhra).
“Nafed and NCCF collate these bids to the Consumer Affairs Ministry, which will decide based on the lowest price offered. However, there are a few issues with this,” said a trader, who did not wish to be identified.
The first tender was cancelled since there was only one bidder, while 6-7 took part in the second tender. While Canadian lentils are considered the best bet, the Australian ones have been termed pricey by the trade. Russia and Ukraine, too, are sources for lentils but no one sure about their pricing.
Attempts to peg prices lower
Basically, traders have two issues with the finalisation of the tenders. One, the tender documents says the bids are valid for two days. “But they are not decided within the stipulated period. Any communication is made informally,” said the trader.
Two, the Consumer Affairs Ministry has reportedly set a benchmark price to decide on the bids. “What is the benchmark price? Why should not the Government let us know so we can decide if we can deliver or not?” wondered a trade source.
Sources in the know said the Centre would like to peg the procurement prices to the minimum level and hence, it was tightlipped on the benchmark price.
The Centre has resorted to stocking imported pulses since it suspects production of pulses could be lower this kharif season and the stocks could help in controlling any surge in prices.
The Ministries of Commerce and Agriculture besides Nafed are handling the tenders, the sources said.
Retail prices surge
Pulses have become a major concern for the Centre in view of a 8.5 per cent decline in the kharif area under various crops such as tur, urad and moong. Pulses coverage has been affected by deficient monsoon rains in key growing regions of Karnataka, Madhya Pradesh and Maharashtra.
Last crop year, production of urad (black matpe) and tur (pigeon pea) were lower. This has resulted in prices of pulses surging in retail outlets. According to the Ministry of Consumer Affairs, urad dal prices have increased by 30 per cent over the past year, while those of tur dal by over 7 per cent. Moong dal rates are up 9 per cent and chana dal by six per cent.