Expanding Pulse Imports to Curb Inflation
New Sources Include Brazil, Argentina, Australia, and African Countries
India is set to import pulses from several countries including Brazil, Argentina, Australia, and African nations to boost domestic supplies and curb inflation. The government has removed import duties on various pulses. Such as tur, urad (black matpe), masoor (lentils), yellow peas, and Bengal gram (desi chana). This concession will last until the end of FY25, which is expected to enhance domestic supplies significantly. “The recent abolition of import duty on Bengal gram aims to signal farmers in Australia and other countries to plant more of this pulse variety,” an official stated.
Record High Pulse Imports and International Collaborations
India’s Strategic Moves to Ensure Steady Pulse Supply
India’s pulse imports reached a record 4.65 million tonnes (MT) last fiscal year, up from 2.53 MT in 2022-23 due to surging demand and insufficient domestic output. “Brazil and India have been collaborating in the pulses sector for quite some time. Our recent decision to plant and export urad to India looks promising.” said Angrio de Queiroz Mauricio, agriculture attaché at Brazil’s embassy in New Delhi. Sources indicate multiple discussions with Argentina on pulses imports. Previously, India mainly imported masoor, tur, urad, and masoor from Australia, Canada, Myanmar, Mozambique, Tanzania, Sudan, and Malawi. The recent removal of import duty on yellow peas in December 2023. Which can substitute for gram (chana), further diversifies sources.
MoUs and Domestic Production Challenges
Addressing the Gap Between Production and Consumption
India signed an MoU with Mozambique for importing 0.2 MT of arhar annually for five years when retail prices of tur skyrocketed to $ 2,41per kg in 2016. This MoU was extended for another five years in September 2021. In 2021, India signed an MoU with Malawi to import 50,000 tonnes of tur annually for the next five years. India also committed to importing 0.1 MT of tur and 0.25 MT of urad from Myanmar until 2026. The annual production of pulses in India is estimated to be between 26-27 Matric Tonnes. Although the country largely meets domestic demand. There is a slight mismatch in the production and consumption of tur, urad, and masoor varieties.
Recently, the government removed import duty on desi chana (Bengal gram) and extended the import duty exemption on yellow peas until October, aiming to curb rising chana prices. Desi chana previously attracted a 66% import duty. To encourage domestic production, while yellow peas had a 50% duty imposed in 2017. Despite these measures, retail pulses inflation remained elevated at 16.84% in April 2024, with arhar prices rising by 31.42%.
Pulses prices are expected to remain high as India increases imports from Brazil, Argentina, Australia, and African countries to meet domestic demand and curb inflation. The removal of import duties on several varieties of pulses and the anticipated higher import volumes aim to boost supply. However, the continued high retail pulses inflation and the slight mismatch in production and consumption of specific varieties like tur, urad, and masoor support the ongoing high prices.