Little Likelihood of a Sharp Decline in Pulse Prices Ahead

07-May-2026 06:17 PM

Mumbai: The pulses market is currently witnessing significant pressure. Wholesale market prices for all major pulses have dropped below the Minimum Support Price (MSP). While a sharp surge in prices appears unlikely in the near future, the probability of a drastic decline is also very low. Even if the market experiences a downturn, it is likely to be quite limited. The impact of most negative factors on prices has already been absorbed. In the coming times, some positive effects may be observed.

In fact, massive stocks of pulses are currently held not only by private traders and importers but also by government agencies. In the future, these government stocks could be released into the open market. Over the past three years, the country witnessed massive imports of pulses, which resulted in substantial gains for supplier nations. Within the domestic sector as well, the supply and availability of pulses have become quite smooth.

However, the activity of importers has now slowed down. During the last financial year, there was a significant decline in pulse imports. This increased price pressure in the global market, compelling supplier nations to sell their pulse stocks at lower rates.

In India, the import of *Tur* (Pigeon Pea) and *Urad* (Black Gram) is completely duty-free, whereas a customs duty of 10% each is levied on indigenous *Chana* (Chickpea) and *Masoor* (Lentil), and a duty of 30% applies to Yellow Peas. Over the last few years, pulse traders have incurred significant losses. Due to substantial financial setbacks, small and medium-sized traders have lost interest and reduced their activity in the trade; they are now attempting to conduct business with extreme caution.

Purchases are currently being made solely to meet immediate requirements, despite the presence of ample stocks in the market. At present, there are no indications of a shortage of pulses; consequently, no sense of urgency is visible anywhere. The current situation is likely to persist for some time, after which an environment of market strength may emerge. The monsoon is also expected to play a contributing role in this scenario.