India’s latest inflation threat is rising bean and pea rates

Pulses are the latest headache for India’s central bank as a delayed start to the four-month rainy season boosts prices of the staple for hundreds of millions of the nation’s vegetarians.

India is witnessing a shortage of legumes after production of some varieties fell last year following unseasonable showers that damaged crops. This year, a late start to the monsoon will potentially hurt planting — further supporting prices for some varieties.

That’s prompting the government to ensure adequate supplies of pigeon peas, one of the biggest monsoon-sown pulses and known locally as tur, as well as grains such as rice and wheat by selling some volume from national reserves.

The government plans to sell 50,000 tons of pigeon peas in the open market to cool prices, according to people familiar with the matter, who asked not to be identified as they’re not authorized to speak publicly. The food ministry flagged the sale of stockpiles in a statement on June 27, but didn’t specify the volume. Rohit Kumar Singh, India’s consumer affairs secretary, confirmed the move on Friday, adding that the country’s pigeon pea imports will climb to 1.2 million tons in 2023-24, compared with 890,000 tons a year earlier.