Policy Extension: Free Imports of Pigeonpea

The Indian government has extended the free import window for pigeonpea (tur) until March 31, 2026, aiming to stabilize supplies amidst domestic production shortfalls. This extension replaces the previous policy, which allowed imports until March 31, 2025.

Despite this move, farmers in key states like Karnataka, Maharashtra, Telangana, and Gujarat have expressed concerns over its timing during the harvest season. Many fear that the imports will further lower market prices, which have already fallen below the minimum support price (MSP) of 0,91 USD per kg.

Decline in Market Prices

Over the past few months, market prices for tur have seen a significant drop:

• Current prices in Karnataka mandis range between 0,67–0,94 USD per kg, compared to 1,20 USD per kg three to four months ago.
• Imported tur prices in Chennai hover around 0,81 USD per kg, while in Mumbai, prices for various grades range between 0,73–0,79 USD per kg.

Production and Demand Gap

India’s tur production for the 2024-25 season is estimated at 3,5 million tonnes, marginally higher than last year’s 3,4 million tonnes. However, the domestic requirement stands at 4,5 million tonnes, leaving a shortfall that necessitates imports.

Industry and Government Perspectives

Bimal Kothari, Chairman of the India Pulses and Grains Association, supported the extension, stating it was essential to meet the consumption gap. However, he emphasized the need for government intervention to purchase tur directly from farmers to stabilize mandi prices.

To address this, the Agriculture Ministry has approved the procurement of 966,000 tonnes of tur at MSP for the current marketing season, with Karnataka accounting for the largest share at 395,170 tonnes.

Boost in Imports and Availability

Between April and December 2024, India imported 1,09 million tonnes of tur, up from 630,000 tonnes during the same period last year. By the end of FY24-25, imports are expected to reach 1,2–1,3 million tonnes, bolstering availability as domestic arrivals increase.

Karnataka’s Additional Support for Farmers

Karnataka has announced an additional support price of 0,054 USD per kg over the central MSP. This initiative will cost the state approximately 16,8 million USD and aims to assist farmers through 400 procurement centers.

Conclusion

The government’s proactive step to extend the free import policy underscores its commitment to ensuring a steady supply of pigeonpea. While this measure addresses supply shortfalls, the dual challenge of stabilizing prices and supporting farmers requires careful management in the coming months.





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