Rising Urad Imports and Local Production Challenges

India’s pulses market is facing growing challenges due to rising imports and production shortfalls. Urad (black gram) imports from Brazil surged over fivefold, increasing from 4,102 metric tonnes (MT) in 2023 to 22,000 MT by October 2024. Brazil’s distinct planting season has enabled it to supply India during periods of low domestic production.

To reduce dependence on imports, the government launched a contract farming initiative in Tamil Nadu, Bihar, Jharkhand, and Gujarat, covering 15,000 acres. This program guarantees procurement at the minimum support price (MSP) to encourage farmers to increase urad cultivation.

Efforts to Improve Tur Production

India remains heavily reliant on imports to meet its demand for tur (pigeon pea), with supplies primarily coming from Brazil and African nations. To address this dependency, the government has promoted tur cultivation in Maharashtra, Madhya Pradesh, and Karnataka. Despite these efforts, prices for tur continue to fluctuate, influenced by procurement programs like NAFED, which supported 1.7 million farmers during the recent Kharif season.

Rising Gram Sowing During Price Challenges

Gram (chickpea), a key crop for the Rabi season, has seen an increase in sowing by 7.1%, reaching 8.6 million hectares during the 2023-24 season. However, domestic gram prices are under pressure due to duty-free imports of substitutes like yellow peas, allowed until December 2024. Additionally, inflation, which hit 20.93% in October, has further impacted prices.

To stabilize the market, the government has implemented measures such as MSP procurement and the Price Stabilization Fund. Initiatives like the Bharat Chana Dal Intervention are helping ease price pressures by offering gram at $0,70 per kg and processed pulses at $0,84 per kg.

Decline in Lentil Production and Shifts in Imports

Lentil production in India has dropped by 29%, primarily due to adverse weather conditions in Australia. This has led to reduced imports from Australia, increasing reliance on Canadian supplies. Global issues, including bad weather in Victoria and reduced Canadian exports, are further straining India’s lentil supply chain.

Limited Fennel Sowing in Gujarat

Fennel sowing in Gujarat has dropped significantly this season, declining by 78,800 hectares or 59.15% compared to the previous year. The current sowing area remains well below the state’s three-year average of 73,677 hectares, highlighting ongoing challenges in fennel production.

The Road Ahead for Pulses Prices

Pulses prices are expected to rise in the coming months due to a combination of factors:

• Tight Supply: Domestic production challenges and global shortages are reducing availability.
• Growing Demand: Demand for staples like urad and tur is increasing steadily.
• High Costs: Rising production costs and limited global supplies are pushing prices higher.

Even with better gram sowing, competition from duty-free imports and inflation continues to pressure prices. Meanwhile, government programs and procurement efforts aim to provide some relief, but supply constraints suggest that prices for key pulses will remain firm in the near future.

Conclusion

India’s pulses market is grappling with rising imports, reduced production, and global supply issues. While government efforts are focused on boosting domestic output and stabilizing prices, challenges like inflation, adverse weather, and increasing demand are keeping prices elevated. Farmers and traders should brace for continued price strength in staples like urad, tur, and gram in the months to come.





Click here to reach our trading platfrom CMBroker