Imports Of Pulses May Dip In FY25 Due To Good Monsoon, Higher Domestic Production

India's pulse imports, which reached a five-year high of 4.7 million tonnes in FY24, are expected to decline to 4-4.5 million tonnes in FY25, driven by a good monsoon and increased domestic production. This projection was made by Bimal Kothari, Chairman of the India Pulses and Grains Association (IPGA), during a seminar titled “Bharat Dalhan-2024” in New Delhi on Friday.

While imports are anticipated to decrease this year, experts caution that without policy changes, India's overall pulse imports could double to 8-10 million tonnes over the next five years. Eminent agriculture economist Ashok Gulati, a Distinguished Professor at the Indian Council for Research on International Economic Relations (Icrier), highlighted the need for targeted policy interventions to prevent this surge.

Gulati advocated for a reversal of policies that favour paddy production. He suggested offering a subsidy of Rs 39,000 per hectare for five years to farmers in states like Punjab to encourage a switch from water-intensive paddy to pulses. This subsidy, he proposed, should be coupled with assured procurement to incentivize farmers to shift to pulse cultivation.

The IPGA also called for the government to establish a long-term policy for the Rs 2.5 lakh crore pulses market, noting that frequent policy changes negatively impact stakeholders. Additionally, the association urged the imposition of import duties on yellow peas to protect domestic producers.

Kothari noted that in FY24, India imported 1.6 million tonnes of masoor dal, despite needing only 1 million tonnes. He also predicted a decline in yellow pea imports from last year’s record level. "In FY24, India imported a record 2 million tonnes of yellow peas since imports were allowed, with another 1-1.5 million tonnes expected in the next 3-4 months," Kothari said.

He added that pulse prices in wholesale markets have decreased over the past month, with further reductions expected. For example, tur prices have dropped by Rs 20 per kilogram in the last month. "Pulses prices will not increase this year; rather, they will continue to fall," Kothari emphasised.

Pulses production in India has seen significant growth, rising from 16.32 million tonnes in 2015-16 to nearly 25 million tonnes in 2023-24, according to the latest estimates.