Pulse prices to drop with increased imports and promising kharif crops

Pulse prices, which have been high over the past year, are likely to soften next month due to increased imports and the prospects of a higher Kharif crop, according to Nidhi Khare, Secretary of the Ministry of Consumer Affairs.

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After a year of elevated prices, the cost of pulses in India is expected to soften starting next month. This positive outlook was shared by Nidhi Khare, Secretary of the Ministry of Consumer Affairs, during a briefing on Friday. Khare indicated that increased imports and prospects of higher Kharif crops are key factors behind this anticipated price decline.

“From July onwards, prices of tur, urad, and chana, which have been at elevated levels, are likely to soften,” Khare announced. Despite the stability in the prices of these pulses over the past six months, they have remained high, while the prices of moong and masoor dals have been more comfortable. Khare expressed optimism regarding the monsoon, predicting above-average rainfall, which is expected to increase the area under pulse cultivation significantly. “Farmers are likely to allocate more area for pulse crops considering the high market prices, which will also improve market sentiments,” she added.

To ensure the availability and affordability of pulses, the government is committed to taking all necessary measures. The Department of Consumer Affairs has mandated that traders, importers, millers, and stockholders of pulses declare their stocks from April 15. Additionally, officials confirmed that the ministry is in ongoing discussions with global suppliers to boost imports and with domestic retailers and wholesalers to prevent hoarding.

The retail inflation rate for pulses and pulse products rose to 17.14% in the past month compared to 16.84% in April, with arhar pulses experiencing the highest price increase at 32.1%. Prices for urad and gram split varieties increased by 14.06% and 14.84% year-over-year, respectively. Conversely, the price rise for lentils was negative in April due to higher imports.

India’s imports of pulses from Africa and Australia are set to bolster supplies. In the previous financial year, India imported nearly 0.8 million tonnes of tur and 0.6 million tonnes of urad. The country imports about 15% of its pulse consumption needs. Furthermore, the government has extended duty-free imports of tur, urad, and masoor (lentils) until March 31, 2025.

Last month, the government removed the import duty on desi chana and extended the import duty exemption on yellow peas until October to control chana prices, which have seen double-digit increases since October 2023. Efforts are also underway to streamline procurement in collaboration with state governments, focusing on non-traditional pulse-growing states like Jharkhand and Uttar Pradesh, which are catching up in pulse production.

Under the price support system, pulses are purchased from farmers to create a buffer, primarily through Minimum Support Price (MSP) operations in major producing states like Rajasthan, Madhya Pradesh, Maharashtra, Karnataka, and Gujarat. Maharashtra, Karnataka, and Uttar Pradesh collectively account for over two-thirds of the total tur production, with 25 districts contributing 60% of the total pulse output.

Earlier this year, Cooperation Minister Amit Shah stated that India aims to achieve self-sufficiency in pulse production by 2027, highlighting the government’s long-term commitment to stabilizing pulse prices and ensuring food security.