Impact of Rising Dollar on Pulses Market

12-Feb-2025 12:11 PM

Impact of Rising Dollar on Pulses Market
★ In 2024, due to a decline in domestic production, pulse imports reached a record 6 million tons, totaling $3.75 billion. However, with good domestic crops of tur, lentils, chickpeas, and moong this year, a reduction in imports is expected, likely preventing a significant rise in import costs despite the weakening rupee.
★ If the rupee weakens further, the impact could be significant, as import contracts are made months before actual shipments.

Availability and Imports of Pulses
★ The overall availability of pulses, combining domestic production and imports, exceeds demand. Imports are expected to decrease in the next fiscal year.
-Lentil Imports: A record 1.6 million tons were imported in FY 2023-24, but this year it may be around 1.026 million tons.
-Tur Imports: Expected to reach 1.127 million tons from April to January 2025, up from 0.676 million tons last year.
-Urad Imports: Expected to reach 0.673 million tons, compared to 0.510 million tons during the same period last year.
-Chickpea Imports: Likely to reach 0.516 million tons in January 2025, with 1.057 million tons expected for the period from April to January 2025.
-Pea Imports: 3.212 million tons of peas were imported from December 2023 to January 2025, with 2.043 million tons during April-January 2025.
★ I-Grain India believes that pulse imports could decrease in the next fiscal year (2025-26), with increased domestic production stabilizing the market and reducing dependence on imports.