Rising Demand for Pulses in India

India's demand for pulses is on a steady rise, with projections indicating that it could reach 40 million tonnes by 2030. This growth is driven by the increasing population and changing dietary preferences. However, the current rate of domestic production may not be sufficient to meet this demand, posing significant challenges for the country's food security. Experts emphasise that without timely and strategic policy interventions by the government, India may see a substantial increase in pulses imports. Potentially doubling to 8-10 million tonnes by 2030.

The Role of Government Policy

A former chairman of the Commission for Agricultural Costs and Prices (CACP) has highlighted the crucial role that government policy must play in addressing this issue. The chairman advocates for a five-year crop diversification incentive, particularly in states like Punjab and Haryana, where the yield potential for pulses is higher. The person points out that these states have traditionally focused on paddy cultivation, but with appropriate incentives, they could significantly contribute to pulse production.

The chairperson's suggestion includes a financial incentive for farmers who switch from paddy to pulses or oilseeds. He also believes that if the central government matches this amount, more farmers will be encouraged to make the switch. Additionally, he stresses the importance of 100% procurement to ensure that farmers receive fair prices for their crops. This approach could not only increase pulse production but also help conserve groundwater, as paddy farming is known for its high water consumption.

Increasing Profitability for Farmers

One key challenge in boosting pulse production is the relatively low profitability of these crops compared to others, such as wheat or mustard. The current chairman of CACP has emphasised the need to raise the profitability of pulses to make them a more attractive option for farmers. He notes that the net returns from pulses are often much lower than those from competing crops, which discourages farmers from planting them on a large scale.To address this, he suggests that ensuring remunerative and stable prices for pulses is essential. This requires close coordination between the government and the trade sector. He cites the example of lentils, where a significant increase in the minimum support price (MSP). It has led to a rise in production. However, the subsequent crash in prices due to allowed imports highlighted the need for a balanced approach that protects domestic producers.

Trends in Pulses Imports

Despite the growing demand, India's pulses imports are expected to decrease in the near term. The chairman of the India Pulses and Grains Association (IPGA) predicts that imports could fall to 4-4.5 million tonnes this fiscal year, down from 4.74 million tonnes in 2023-24. This decrease is primarily due to lower imports of lentils and yellow peas which are expected to be offset by increased domestic production.

Experts note that while India imported 1.6 million tonnes of lentils last fiscal year, the actual requirement was only around 1 million tonnes. They also anticipate a reduction in yellow pea imports. The improvement in monsoon rains and the subsequent increase in pulse acreage during the Kharif season are contributing to this optimistic outlook for domestic production.

India's pulses market is at a critical juncture, with growing demand and potential supply challenges on the horizon. Strategic government interventions, particularly in incentivizing crop diversification. And ensuring stable prices, are essential to increasing domestic production and reducing reliance on imports. As the country moves towards 2030, the focus must be on creating a sustainable and profitable pulses sector. Which can meet the needs of its growing population while supporting the livelihoods of its farmers.