A Boon for Indian Urad Market

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Rising Imports from Brazil

With Brazil and Argentina ramping up their cultivation of black pulses or urad, India, the world’s largest consumer of pulses, anticipates a surge in imports from these nations. Historically, Myanmar has been India’s primary urad supplier. However, this year, the Indian Pulses and Grains Association (IPGA) foresees significant imports from Brazil. It is estimated that there will be around 50,000 tonnes from June to July, compared to last year’s mere 5,000 tonnes.

Trade Advocacy in Brazil

A recent delegation from IPGA visited Brazil, urging the country to expand its pulse cultivation. With India’s vast market potential in mind, the delegation emphasized the lucrative opportunity for Brazilian pulses in the Indian market.

Moreover, India’s urad imports witnessed a notable rebound during the 2023-24 period due to many reasons. Firstly, domestic supply shortfalls are caused by erratic weather conditions. This affected both kharif and rabi crops. Import data from Igrain India reveals a 19% increase in urad imports to approximately 0.623 million tonnes compared to the previous year’s 0.524 million tonnes. Recognizing the ongoing supply challenges, India has extended duty-free urad imports until March 31, 2025, to mitigate pulse inflation.

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Understanding Production Challenges and Alternative Sources

The recent estimates from the Agriculture Ministry paint a concerning picture, showing a decrease in urad production for the 2023-24 season. Both the kharif and rabi crops have suffered setbacks compared to previous years. Yet, during this downturn, there’s a glimmer of hope emerging from Brazil and Argentina. These countries have begun cultivating black pulses, hinting at a potential boost in urad production. This development suggests a promising alternative to Myanmar, which has long been the primary urad supplier. It’s a ray of optimism amongst these challenges, offering India a potential solution to its urad supply needs.

In conclusion, the rising imports of urad from Brazil signal a promising development for the Indian market. The recent delegation to Brazil highlights the bold efforts to expand pulse cultivation and tap into India’s vast market potential. Additionally, India’s rebounding urad imports in the face of domestic supply challenges demonstrate the resilience of the market. However, production setbacks in the 2023-24 season highlight the need for alternative sources, with Brazil and Argentina emerging as potential suppliers. Overall, while challenges persist, there is optimism for India’s urad market with diversified import options and ongoing advocacy efforts.