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Factors Behind the Reduction in Indian Pulses Exports

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Overview of Export Decline

In the fiscal year 2023-24, India’s pulses exports experienced a significant downfall. Volumes dropped by 22%, while the value decreased by 2.5%. Key markets such as Bangladesh, China, and the United Arab Emirates (UAE) reduced their purchases due to higher prices. Total pulse exports stood at 0.594 million tonnes compared to 0.762 million tonnes the previous year. In monetary terms, exports amounted to $644 million, down from $661 million the prior year.

Factors Influencing the Decline

Several factors contributed to this decline. The chairman of the India Pulses and Grains Association cited adverse weather conditions affecting production. Prices of chana (chickpeas) were 15-20% higher than the Minimum Support Price (MSP), which hampered exports. Traditionally, chana found buyers in countries like Bangladesh and Nepal. However, this year saw a decrease in demand for both desi chana and chickpeas.

Key Markets’ Reduced Purchases

  • Bangladesh: The largest buyer of Indian pulses, reduced its purchases to 0.185 mt from 2 mt the previous year.
  • China: Purchases plummeted to 50,223 tonnes from 0.165 mt the previous year.
  • UAE: Purchases dropped to 80,396 tonnes from 0.133 mt the previous year.

Exceptions to the Trend

Despite the overall decline, some markets showed resilience. Exports to the United States increased to 34,944 tonnes from 32,589 tonnes. Sri Lanka also saw an increase, importing 27,699 tonnes compared to 23,417 tonnes the previous year. The United Kingdom nearly doubled its imports to 18,996 tonnes from 9,919 tonnes. An insider noted that while desi chana and kabuli chana exports dipped, other pulses like lentils, turn, and urad showed positive trends. Lentil exports more than doubled to 0.158 mt, and tur and moong exports saw marginal increases.

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Domestic Market Scenario

India, the largest producer and consumer of pulses, imported a record quantity during the year to stabilize domestic supplies and control prices. Pulses are a crucial dietary component, providing a significant source of protein for the Indian population. The need to maintain affordable prices led to increased imports, compensating for the shortfall in exports.

Higher prices and lower crop yields in fiscal year 2023-24 posed significant challenges for India’s pulses exports. Key markets like Bangladesh, China, and the UAE reduced their purchases, contributing to a 22% decline in export volume and a 2.5% decrease in value. While specific markets like the US, Sri Lanka, and the UK showed resilience, the overall trend highlights the need for strategic adjustments. Moreover, the government’s efforts to manage domestic supply and prices through increased imports emphasize the importance of maintaining balance in the pulses market.