The government is taking decisive steps to manage the rising prices of pulses, ensuring that the festive season remains celebratory and affordable for all. With the festive months approaching, officials are ramping up imports of various pulses from countries like Australia, Africa, and Myanmar, with shipments expected to arrive by December. Notably, containers of tur dal from African nations have already started reaching Indian ports, signaling the government’s commitment to stabilize prices.
The Import Strategy
According to insider reports, India will import a significant volume of pulses, specifically focusing on gram and yellow peas. The anticipated figures include 1.5 million tonnes of gram and 2.1 million tonnes of yellow peas sourced from Australia. This move comes amid a backdrop of challenges within the domestic agricultural sector, where the sowing of gram has dipped by approximately 6% for the 2023-24 season, leading to an expected production of around 11.57 million tonnes.
Market Analysis
The market landscape suggests a possibly lower-than-expected production of gram, with fresh arrivals of 30 thousand tonnes of tur dal from Mozambique. In a proactive move, the government has waived 66% of the import duty on pulses for FY25, effective from May 2024. Additionally, stockholding limits are currently enforced on both gram and tur dal until September 30, to prevent hoarding and ensure steady supply.
Expert Opinions
Industry experts weigh in on the expected impact of these measures. Bimal Kothari, the Chairman of the Indian Pulses and Grains Association (IPGA), stated in a recent interview that over 7,000 tonnes of yellow peas are consumed daily in India. He noted that the prices of tur dal have already dropped by 25 rupees. If the current tur crop remains unharmed, he predicts a potential production of 4 million tonnes. Furthermore, Kothari emphasized that the rise in domestic gram prices is a direct consequence of production fluctuations in Australia, yet he remains optimistic that the prices of lentils will stabilize moving forward.
Future Projections
Director of JLV Agro, Vivek Aggarwal, expressed concerns about possible government action to restrict free imports of yellow peas due to substantial rain affecting tur production areas. He mentioned the looming possibility of La Niña conditions in October, which could impact agricultural yield. Aggarwal forecasts that while the supply of gram in the market is limited, prices are likely to decline once the imports from Australia commence. He does not anticipate any changes to the current import duty on pulses, suggesting that the overall market may not see significant price hikes in the near future.
Conclusion
As the festive season approaches, the government and industry experts continue to monitor the pulse market closely. With proactive import strategies and collaborative efforts between the public and private sectors, it seems the aim is to not only stabilize prices but also ensure the availability of essential pulses during this critical period. Keeping a watchful eye on weather patterns and production forecasts will be crucial as stakeholders navigate this evolving landscape.
