Thanks to robust kharif prospects and rising imports of pulses from Africa and Australia, the government plans to put a lid on prices of these protein-rich items in the upcoming festive months, when demand usually sours.
Officials said that there has been moderation in prices of pulses especially tur, urad and chana in the last couple of weeks after reports of domestic kharif crop prospects and imports from Africa and Myanmar improved supplies.
Retail inflation in pulses have been in double digits since June, 2023 because of lower output of key varieties of pulses like chana, tur and urad.
A senior official said there is a strong possibility of imports of around 1 to 1.5 million tonne (MT) ‘desi chana” or Bengal gram by December from Australia which would meet the shortfall in the domestic production of chana in the current 2023-24 crop year (July-June). In May, the government had abolished 66% import duty on ‘desi chana’ till the end of FY25.
According to the agriculture ministry, output of chana, which has around 50% share in the country’s pulses production, declined by 5.62% to 11.57 MT in 2023-24 crop year compared to previous year. However, trade sources estimated the output of key pulses variety much below the official estimates.
“Besides the Bengal gram imports prospects from Australia, 2.1 MT of yellow peas already imported, is being used as a substitute for chana for domestic consumption,” an official told FE. In addition, thre are sufficient stock of chana from domestic output. The government had imposed stock holding limits on tur and chana till September 30.
In December last year, the government allowed duty free import of yellow peas while an import duty of 50% was imposed on pulses variety in 2017 to encourage domestic production. The duty relaxation on yellow peas has been extended till October 31.
In addition, the official said that with above normal monsoon rainfall this season is expected to boost soil moisture available for rabi or winter crops and expected to boost domestic chana output.
Sources said that from Myanmar around 0.4 million tonne (MT) of urad and 0.3 MT of tur have been imported while imports from African countries including Mozambique have commenced. Trade sources said that two vessels containing 30,000 tonne each of tur dal from Mozambique have arrived in the ports.
At present, area under pulses such as tur, urad and moong rose by 7.28% to 12.51 million hectare on year so far, which is expected to boost pulses production in the 2024-25 season.
This is expected to bring down inflation in pulses.
However, in the case of chana or gram split, whose prices rose by 20.55% in July on year, it is expected to be moderate once imports from Australia start arriving by the end of the year.
India imports about 15% of its pulses consumption. India’s import of pulses rose by 90% to 4.73 MT in FY24 compared to 2.69 MT in 2022-23. The pulse production in the 2023-24 crop year declined by 6% to 24.49 MT from 26.05 MT in the 2022-23 crop year.
India had signed an MoU with Mozambique for import of 0.2 MT of tur annually for five years when the retail prices of tur skyrocketed to Rs 200 a kg in 2016. This MoU was extended for another five years in September, 2021.
In 2021, India entered into a MoU with Malawi for the import of 50,000 tonne tur per annum for next five years. Under a MoU, India is committed to import 0.1 MT of tur and 0.25 MT of urad from Myanmar till 2026.
