India, the world’s largest consumer and producer of pulses, is diversifying its import sources to keep domestic prices stable by entering into long-term deals with Brazil and Argentina after several rounds of negotiations, according to government officials.
For the first time, India is expected to import over 20,000 tonnes of black gram (urad) from Brazil.
It will also import unspecified amounts of pigeon pea (tur) from Argentina to meet its domestic requirements.
This move comes as retail inflation in pulses remains high at 17.71 per cent in March, though lower than 18.9 per cent in February. The Reserve Bank of India highlighted that food price pressures are posing challenges for bringing inflation down to the target of 4 per cent.
India’s pulses output dipped to 23.4 million tonnes in 2023-24 from 26.1 million tonnes a year ago, necessitating imports to meet total demand.
The country imported nearly 3 million tonnes of pulses in 2023, mostly lentils, black gram, and pigeon pea, from various nations.
The government has waived import duties for three varieties of pulses – pigeon pea, black gram, and lentil (masoor) – until March 2025 to boost local supplies and keep prices affordable ahead of the general election.
Officials cited affordability and availability as significant factors behind the long-term deals with Brazil and Argentina, which have conducive weather conditions for growing these varieties.