An Overview

The Indian government has recently exempted Kabuli chana (chickpea) from stock limit regulations, following requests from the trade sector. This decision is anticipated to ease the export process for Kabuli chana, which is particularly beneficial for exporters dealing with this premium chickpea variety.

Government Decision And Impact on Exports

The government issued a gazette notification exempting Kabuli chana from stock limit restrictions. Previously, on June 21, 2024, the government had imposed stock limits on various pulses, including Kabuli chana, tur, and chana, until September 30, 2024. This move was aimed at preventing hoarding, curbing speculation, and enhancing affordability for consumers. The regulations were applicable to wholesalers, retailers, big chain retailers, millers, and importers. The exemption of Kabuli chana from stock limits is expected to benefit exporters significantly.

Kabuli chana, known for its superior quality and higher price compared to desi chana, is predominantly an export commodity. According to the Chairman of the India Pulses and Grains Association (IPGA), this government decision addresses a genuine concern. The IPGA had previously requested the exemption, arguing that Kabuli chana's primary market is international and that stock limit restrictions hindered its export potential.

Trade Body's Perspective And Exports Trend

The IPGA actively lobbied for this exemption, highlighting Kabuli Chana's unique export-oriented nature. They further emphasized that the removal of stock limits would not impact the domestic market, as Kabuli Chana is primarily exported. This exemption is seen as a positive step towards supporting the trade body's efforts to promote Indian pulses in global markets.

An expert from Igrain India has also welcomed the government's decision, noting that it will facilitate Kabuli chana exports.

• Data indicates that India exported 39,634 tonnes of Kabuli chana during April-May of the current financial year, a decline from 44,977 tonnes during the same period last year.
• The total exports for 2023-24 were 99,158 tonnes, lower than the previous year's 0.121 million tonnes.

This downward trend in exports highlights the need for regulatory relief to boost the market.

The exemption of Kabuli chana from stock limit regulations is a strategic move by the Indian government to bolster exports. This decision addresses the concerns raised by trade bodies and exporters, potentially reversing the declining export trend. For exporters, this regulatory relief is expected to enhance market access and competitiveness in the global market. As Kabuli chana exports gain momentum, stakeholders must continue to monitor market movements and adjust strategies to capitalize on this opportunity.