The price of pulses is expected to remain strong in the long term

07-May-2025 01:55 PM

New Delhi. The amount of pulses in the government buffer stock is currently low. Although the stock of moong and masoor is higher than normal and the government's procurement of tuvar has increased, there is growing concern over the significant decline in the stock of urad and gram.

According to a leading rating agency, the duty-free import of yellow peas has improved supply and helped reduce prices over the past few months, but in the coming months, maintaining adequate supply could become a challenge for the government.

The duty-free import of yellow peas was first allowed in December 2023 and has been extended several times. Most recently, the deadline was extended until 31 May 2025.

What happens after that remains uncertain. If the prices of gram and lentil fall below the minimum support price (MSP) and government agencies succeed in building a good buffer stock through procurement, the government may consider restricting yellow pea imports. However, if there are challenges in procuring gram, then it may become difficult to halt duty-free imports.

Gram and yellow peas are common consumer pulses and often act as substitutes for one another. The large and low-cost import of yellow peas has significantly reduced gram prices in the domestic market from their peak levels.

The government had also made the import of Desi gram duty-free in May 2024, which led to a record level of imports. Although the duty-free period was set to end on 31 March, the government imposed an 11 percent customs duty on it, similar to lentils, before the deadline.

The government has approved the purchase of 28 lakh tonnes of gram from major producing states this year, but the procurement process has been slow so far. As a result, the buffer stock of pulses is not increasing at a satisfactory pace.