Retail market price of pulses high despite fall in prices in wholesale markets

31-Dec-2024 01:06 PM

The retail market price of pulses in India remains high despite a drop in wholesale prices, reflecting a disconnect between the two markets.

While wholesale prices have fallen by 5-20% over the past two months due to an influx of imports and the arrival of new Kharif crops, retail prices have remained largely unchanged.

For instance, the retail price of tuvar dal is Rs 160 per kg, urad dal is Rs 120 per kg, and chana dal is Rs 90 per kg, all of which have remained stable for the past three months.

This situation has been caused by several factors. One key reason is the weak domestic production of major pulse categories like tuvar, urad, and gram, which has led to higher prices despite a reduction in wholesale costs.

The government has approved duty-free imports of pulses, improving supply, but the benefits have not yet fully reflected in retail prices.

The Ministry of Consumer Affairs has urged retailers to align their prices with the falling wholesale rates. While analysts expect retail prices to soften in the coming weeks due to the increase in domestic supply and imports, there remains a lag in price adjustments at the retail level.

With the production of tuvar and urad expected to improve and imports of gram and yellow peas increasing, it is anticipated that retail prices will eventually start to decrease. However, the rate of this adjustment may be gradual.