Production of Pigeon Peas is less than the previous year in India
Pigeon Peas is one of the most consumed pulses in India. But, unseasonal October rains in Maharashtra and Karnataka have affected the production of Pigeon Peas (Toor Daal). Its production is expected to be lower in the current crop year (July-June) due to rains which have increased the price of the commodity. As per the second advance estimate for food grain production for the 2022-23 crop year, Toor production was estimated at 3.66 Million Tonnes, a decline of 13% from 4.22 Million Tonnes estimated in the 2021-22 crop year.
Farmers are not motivated enough to produce Pigeon Peas
A request to increase the Minimum Support Price (MSP) of pigeon peas has been sent to the Government by traders and millers of pulses. The intention was to encourage the farmers to grow more Toor Daal. Compared to other pulses like Moong, Toor takes longer time in the field, which makes it the least preferred legume for farmers. The MSP of Pigeon Peas is USD 89.40 per quintal and MSP of Moong is USD 103.80 per quintal which is far lower. This MSP of Toor is inclusive of a hike of USD 4.85 last week.
India has to import Pigeon Peas to meet domestic demand
There is more demand for Pigeon Peas in the domestic market and India’s production is unable to mitigate the demand on its own. Therefore, India has to import a million tonnes of Toor in the marketing year 2023-24 to meet the domestic demand as production in the country is expected to drop due to wilt disease. Previous fiscal, India had imported 0.85 Million Tonnes of Pigeon Peas to meet domestic demand. Consumer Affairs Secretary “Rohit Kumar Singh ” had stated in January.
India imports pulses from Myanmar and East African nations like Tanzania, Mozambique and Sudan.
The Center has also extended the import of Pigeon Peas and Black Gram Splint (Urad Daal) under the ‘free category’ till March 31, 2024.
Consumer Affairs Secretary asked the retailer to keep reasonable profits – Government imposed a stock limit
On June 2, the Central government decided to levy stock limits on Toor and Urad Dat till 31st October. The aim is to prevent hoarding and unscrupulous speculation, and spurt in prices of these pulses. Stock limits on pulses are applicable to wholesalers, retailers, big chain retailers, millers and importers. This has the impact of a slight decrement in prices after the stock limits but unless the supply is not enough to meet the demand, prices may remain high over the next three-four months.
“The stock limit may not lead to much decline in Toor prices as there is a shortage,” Suresh Agarwal, president of All India Dal Millers’ Association, has told ET. Consumer Affairs Secretary Rohit Kumar Singh had directed retailers to not keep their profit margin on pulses, especially tur dal, at “unreasonable level”.
Conclusion
India is the biggest grower of pulses, yet it still falls short of Pigeon Peas (also known as Pigeon Peas or Arhar Daal in the local language) which it has to import in large quantities to fill the demand-supply gap. It often sees price fluctuations, more on the higher sides which ultimately impact other pulses too. Hoarding by traders and so-called cartelization in imports also contribute to price hikes. Unprocessed whole Toor beans are processed at the mills to produce split Pigeon Peas. Ex-mill Pigeon Peas prices have increased by about 30% since January.
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