Recessionary Trends in the Agricultural Market

27-Sep-2025 11:17 AM

With improved supply and availability and normal demand, the domestic agricultural produce market is experiencing a slowdown, providing relief to consumers but increasing the concerns of farmers.

Prices of essential daily commodities such as pigeon pea (tuvar), black gram (urad), green gram (mung), and onion have fallen to their lowest levels in three years.

Soybean and cotton prices are also at their lowest levels in the past two years, while yellow peas have fallen to their lowest prices in six years.

The heavy arrival of Kharif pulses is expected to begin soon, and if wholesale market prices remain depressed, farmers will be frustrated, forcing the government to resort to large-scale procurement through its agencies at the Minimum Support Price (MSP).

Continued massive imports of various pulses and edible oils from abroad at low prices have significantly eased the domestic supply and availability, thus exerting pressure on prices.

The issue of banning the import of yellow peas has even reached the Supreme Court. It is understood that NITI Aayog and the Union Agriculture Ministry are also in favor of restricting the import of yellow peas, as this is considered a major factor in the sharp decline in the pulses market.

When export duties were suspended in Argentina, Indian importers signed contracts to purchase 300,000 tons of soybean oil within two days. The government is in a dilemma.

On one hand, the sharp drop in prices has left pulse and oilseed producers anxious and frustrated, while on the other hand, the peak festival season is underway, and the government is paying special attention to the interests of ordinary consumers.

Due to the excellent production of pulses in major producing and exporting countries, exportable stocks have increased significantly, and every effort is being made to increase shipments from there to India.

It would not be unfair to say that India has become a dumping yard for pulses for many countries, and government policy is proving to be helpful in this regard.

Tur, urad, and yellow peas are imported duty-free, and only a 10 percent import duty is applicable on gram and lentils. The 11 percent customs duty on cotton imports has been removed.

Duties on edible oils have already been reduced. The government should immediately take necessary precautionary measures in the interest of farmers.