Import of gram reduced due to softening of domestic market price

17-Feb-2025 04:16 PM

The import of gram in India has been impacted due to a drop in domestic market prices. Indian importers had earlier contracted for Australian gram at a higher price, but now with the domestic prices falling, they are finding it difficult to fulfill these contracts.

As a result, some importers are defaulting or attempting to renegotiate prices with Australian exporters.

Negotiations are ongoing between both parties as Australian exporters are aware of the changing dynamics in the Indian market.

Australia is the largest exporter of gram to India, and this year there has been continuous production of gram there. India has already imported large quantities, and with the new crop arriving soon, the pressure on prices is intensifying.

Importers who secured contracts at higher prices are now concerned about financial losses and are less enthusiastic about further orders.

According to experts, up to 15% of the contracted imports, amounting to approximately 2.25 lakh tonnes, are at risk.

In May 2024, the Indian government made the import of Desi gram duty-free, aiming to increase supply and curb rising domestic prices.

This initiative was later extended until March 2025. When Australian gram became available in large quantities from October-November 2024, Indian buyers quickly contracted large amounts.

However, with Australia's gram production expected to more than triple in the 2024-25 season, Indian importers are feeling the impact of heavy imports, especially with prices falling by over 30% between September 2024 and January 2025.

Furthermore, the surge in imports of yellow peas from Canada and Russia has also contributed to the downward pressure on gram prices.