KARACHI, June 12: Importers have stopped placing fresh orders for import of gram (black channa) following a sudden surge in prices owing to the entry of Indian importers in the world market in a big way.

Prices of gram in the world market soared to a record level of $600 per ton, as the Indian importers moved in to place large orders to meet their domestic shortfall of the produce.

The Indian government waived a 10 per cent customs duty on import of all categories of pulses, as the country was faced with an acute shortage of lentils and prices have soared to an unprecedented level in the Indian market.

According to market sources, Pakistan was also facing a shortage of gram on poor harvesting sufficiently only to meet 50 per cent of total demand at 850,000 tons. However, the recently announced subsidy of Rs8 per kg or Rs8,000 per ton on import of gram (kala channa) attracted some imports, but the sudden hike in prices on the entry of Indian importers is now discouraging the importers from placing more orders to foreign suppliers.

In the local market, gram prices came down from Rs32 per kg to Rs26 immediately after the government announced subsidy on its import. Consequently, the importers feel they may suffer losses on two accounts: higher prices in the world market and lower rates in the domestic market.

India has so far imported around 75,005 tons of pulses from Myanmar (Burma) which includes 31,539 tons mash, 27,084 tons moong, 12,039 tons tur, 1,928 tons black beans and 3,568 tons chickpeas (kala channa). Pakistani importers managed to book some import consignments of black channa at $475 to $500 per ton but after the entry of Indian importers prices have soared to $580 to $600 per ton in the world market.

Pakistan Commodity Importers Association (CIA) President Raees Ashraf Tarmohammad told Dawn that the association members were now reluctant to enter into any commitments, fearing huge losses owing to higher world market prices and lower domestic rates of black channa.

The country is also faced with a shortage of pulses as most of the crops were below target. Even the world market is witnessing short supply of major pulses, and barring Myanmar, Australia and Canada, most of the countries are facing shortages.