Govt expects stable pulse prices on the back of fresh arrivals, comfortable stocks

Inflation in pulses has remained persistently high throughout the year, with wholesale inflation shooting up to a 48-month high of 17.7 percent in September

After burning a hole in the common man’s pocket throughout the year, the government expects the price rise in pulses to begin moderating and remain stable for the next six months following fresh arrivals and comfortable government stocks.

“We expect prices to be stable for the next six months as fresh crop arrives in the market, along with a good crop expected in international geographies we import from. Furthermore, the government is holding about four million metric tonnes (mmt) of pulses at the moment, to be released when necessary,” a senior government official said on condition of anonymity.

Inflation in pulses has remained persistently high throughout the year, with wholesale inflation shooting up to a 48-month high of 17.7 percent in September. Prices of almost all varieties of pulses, barring masur, have spiked. The trend is being led by tur, whose retail inflation was running at a six-year-high of 37 percent in September.

Even though the acreage for pulses has fallen nearly 6 percent on-year, the government expects fresh arrivals from November to bring down the prices of this kitchen essential.

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“Our buffer stocks are much higher this year due to high procurement last season. This will help us stabilise prices when the time comes,” the official added.

The government has already released about 1.6 lakh metric tonnes (lmt) of tur slowly gradually over four months in wholesale markets.

Further, in order to stabilise prices, the government has started procuring imported varieties from international geographies. “Myanmar as well as east African nations have had a good output this season. Both tur and urad imports should not be a problem,” the official said.

Tur and urad account for two-thirds of the total kharif pulses production, and have a share of over 70 percent in India’s pulses import basket. India imports most of its tur dal from Myanmar and east African nations such as Malawi, Mozambique, and Tanzania, among others, while urad is mostly purchased from Myanmar and United Arab Emirates. The country has already imported about 24 lmt of pulses this calendar year, including 8 lmt of tur, 6 lmt of urad, and 10 lmt of masur.

The government has taken steps to prevent hoarding and ensure the continuous release of tur and urad in sufficient quantities in the market, by enforcing stock-holding limits till the end of the calendar year.

With the aim of shifting consumption for those who cannot afford the expensive arhar, currently ruling at an average of Rs 152 a kilo, the centre has been selling subsidised chana dal as ‘Bharat Dal’ in retail packs at Rs 60 per kg across the country.

Tur and urad continue to be free from any import duties, as per a government notification of January 2023.

The average retail price of tur at the pan-India level is Rs 152 a kg, while urad is Rs 119.70 per kg, according to data provided by the consumer affairs department.

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