KARACHI, July 24: Pakistan may have to import 50,000-75,000 tons of gram in view of around 18 per cent decline in local production of gram (whole) to meet rising demand of the commodity in Shab-e-Barat and Ramazan.

In view of production fall, wholesale price of gram (whole) in Jodia Bazar has already come under pressure in the last two months, rising to Rs19.50-20 per kg from Rs16-17.

Retailers are quoting the gram (whole) price at Rs28 per kg as compared to Rs24 two months back. The retail price of gram pulse has surged to Rs28-30 from Rs24-25 per kg. Basin price has increased to Rs30 from Rs28 per kg.

Despite increase in sown area to 986,000 hectares in 2003-04, production of gram remained thin at 548,000 tons (July-March 2003-04) as compared to 675,000 tons (963,000 hectares area) in the same period of the previous fiscal.

Importers are opening letters of credit for the import of gram preferably from Australia in order to meet the shortfall in coming months, Chairman Karachi Wholesale Grocers Association (KWGA), Anis Majeed told Dawn on Saturday.

Australian gram prices now range between $320-335 per ton while Ethiopian and Tanzanian gram prices are being quoted at $310 per ton.

If gram is imported at the latest prices, the landed price of Australian gram in Pakistan will be Rs21.50 per kg. Some importers, few months back, had entered into a deal with Australian exporters at the rate of $300-325 per ton, he said.

The current gram crop is short by over 50,000-75,000 tons this year and it should have been over 600,000 tons to meet the annual requirement of similar quantity, he said.

Pakistan had a good gram crop last fiscal year out of which around 100,000 tons had been exported mainly to India, Bangladesh, Sri Lanka etc. Because of the good crop, price of gram and other products like gram pulse, basin etc., remained low, Mr Anis said adding that last year's stock of 25,000-30,000 tons have already sold out in the market.

Market sources said that some market players were now busy in hoarding of gram in order to make windfall in coming months when demand shoots up.

However, KWGA chairman did not agree with this, saying that whenever any crop falls short, it makes a psychological impact on price. He ruled out the possibility of hoarding gram in the market.

He linked the low production of gram to damage to standing crop caused by wide spread rains.

In contrast to fall in gram crop, production of masoor and mung depicted a rise of 2.7 and 1.7 per cent in July-March 2003- 2004 as compared to same period of previous fiscal. A total of 30,000 tons of masoor were produced from 51,000 hectares compared to 29,000 tons from 49,000 hectares. Mung production reached to 141,000 tons (sown over 256,000 hectares) as compared to 138,000 tons from 257,000 hectares.

Due to increased availability, mung and masoor were also being exported. Around 5,000-7,000 tons of masoor were exported to Bangladesh in the last three months, while 3,000-5,000 tons of mung were shipped to India.

While the production of mash declined by 13.7pc to 25,000 tons sown over 49,000 hectares in July-March 2003-04 against 29,000 tons from 55,000 hectares the same period last year.

The rate of mash in Burma is now flying high at $340 per ton as compared to $250 per ton in just one month, while supreme quality is being quoted at $300 per ton from $285 per ton due to hectic due to hectic buying by India due to lower crop prospects.