Pressure on the domestic market due to the arrival of Kharif pulses and foreign imports

23-Dec-2024 06:15 PM

The domestic pulse market is experiencing pressure due to the dual factors of an increase in the Kharif season’s pulse production and rising foreign imports.

The good rainfall during the South-West monsoon prompted farmers to focus on pulse cultivation, resulting in a rise in the cultivated area for Kharif pulses from 119 lakh hectares last year to 129 lakh hectares this year. This increase was particularly notable in Arhar (Tuvar) and Moong.

However, the initial high market prices during the season spurred optimism, and the production forecast for Kharif pulses was estimated to be 85 lakh tons.

Unfortunately, due to the impact of heavy rains and floods, the production estimate has been revised down to 80 lakh tons, which is still an improvement over last year’s yield but falls short of the government’s target of 95 lakh tons.

Furthermore, the Union Agriculture Ministry’s first advance estimate in November pointed to a potential sharp drop in Kharif pulse production, predicting only 69 lakh tons, surprising the industry.

This estimate is likely to be revised once the harvest is complete, with some experts suggesting it may rise to 80 lakh tons in the second estimate.

In addition to domestic factors, the market is also under pressure from foreign imports. The duty-free import of yellow peas, a crucial pulse, will end on December 31.

Although the government has not yet issued any notification regarding an extension of this deadline, the duty-free period for other pulses will continue until March 2025.

This uncertainty about import policies adds to the challenges for local pulse producers, who are facing competition from international imports alongside fluctuating domestic production.

Meanwhile, the sowing trends for Rabi pulses like gram, lentils, and peas show a mixed pattern.

While there is optimism for a good increase in gram cultivation, other pulses are not seeing the same level of enthusiasm as last year, which could further affect the domestic market balance in the coming months.