With the demand for pulses going up in the country, Export Trading Group (ETG), an African agricultural commodity company which has processing plants in India, is looking to strengthen its position with a further investment of $100 million over the next 18 months or so, according to its chairman Mahesh Patel.

The investments come in the backdrop of India being a net importer of pulses. Now, African countries are turning key suppliers of pulses to India. “Pulses imports to India are likely to be 6,00,000 tonne by 2015, a ten fold increase from 60,000 tonne five to six years ago,” he said, adding that significant investments are happening here, particularly in processing plants.

The investments will be used for setting up processing plants so that the supplies can be more direct. Out of the proposed $100 million investments, about a fifth will be for setting up processing plants in Maharashtra, Gujarat and Tamil Nadu.

Back home in Africa, ETG, he said, is working with small farmers for increasing the production of pulses and aiding in price discovery. The consumption there is less as maize is a staple. “There is arable land available in Africa that can be used for cultivating pulses,” he said, adding that exports of pulses from African countries may increase by 1,00,000 tonne on an annual basis in a few years.

India imported about 2.4 million tonne pulses this year, 2.6 million tonne last year and about 3.5 million tonne dueing 2009-10. The production this year is likely to be 17.2 million tonne compared to 18.24 million tonne last year. India does not allow export of pulses, except the Kabul chana and organic dal.

According to Pravin Dongre, president of Indian Pulses and Grains Association, the apex body of India’s pulses industry and trade, the pulses trade is estimated to be $100 billion industry at the retail level. India is the largest consumer of pulses and also imports a third of the pulses produced globally.

“The growth of pulses has not been in line with the growth of population. The pulses grew only one per cent CAGR in the last decade or so while the population grew at a two per cent CAGR,” he said about the increasing demand supply gap of pulses.

[The correspondent attended the Global Pulses Conclave held in Mumbai]