Pigeon Peas: Shortage in supply, demand is intact – Upswing in prices by 27%
The pulses industry expects the fall of “Pigeon Peas” also known as “Toor Daal” in the local language; by more than 20%. As per a government estimate, in the current year 2022-23 Pigeon Peas production is 14% lower than the previous year.
Data from the consumer affairs ministry shows that the retail prices of Pigeon Peas, have increased by 27% in the last year and by 10% in the last six months capital city of India i.e. Delhi. The current price in Delhi is USD 1.6/kg while the average price is USD 1.4/kg. The increase in retail tur dal prices in Delhi is close to 60% in the past five years. Production has not kept pace with demand and the highest-selling dal’s wholesale price has been reported up by 60%.
According to data with Agmarknet, the average price of unprocessed Pigeon Peas at the Latur wholesale market in Maharashtra has jumped to USD 108.5 per quintal on Wednesday from USD 72 per quintal on the same date a year ago, up 50%. The prices rose by 24% in the last four months since the harvest of the new crop began in January.
Local traders are influencing sales of alternatives to Pigeon Peas
Considering such a shortage in the production of Pigeon Peas, traders are of the view that reducing demand for toor by influencing a change in consumer preference could mitigate the short-term problem solution because the demand of Pigeon Peas is intact. It can be replaced with other pulses such as Masoor (Orange Lentils), Moong (Green Gram) and Chana (Yellow Lentils) to stem the rising prices.
IPGA: various campaign activities are under planning & Govt. procurement must be stopped.
The IPGA (Indian Pulses and Grains Association) has proposed a joint campaign with the Department of Food and Public Distribution to promote the consumption of pulses like masur, moong, chana and yellow peas as an alternative to Pigeon Peas. IPGA has also suggested that the central and the state governments should stop buying Pigeon Peas from the open market for supply under their welfare schemes.
Import is also an alternative, but not good enough – must wait for the harvest period
To fulfill the domestic demand even through imports is also a very expensive alternative. Outside of India, Pigeon Peas is available only in Myanmar and a few countries in East Africa, which grow them only for the Indian market only. “There are just about one lakh tonnes of Pigeon Peas left in Myanmar, while we can get the shipments of the tur from East Africa only in September”, said Kothari.
The prices of Pigeon Peas in Africa, have opened 25% higher in forward trade, according to traders. “The quotes for forward trade for African Pigeon Peas are higher by about 25% than the previous year,” said Harsha Rai, vice president (sales), Mayur Global Corporation. “Importers may prefer to wait till the harvest period, as the arrival pressure can soften the prices.”