An unforeseen surge in India’s pulse imports marked fiscal year 2024 as the country reported an 84% increase from the previous year – reaching a record unseen in the past six years. This uptick came on the heels of a production shortfall that compelled the Indian government to sanction duty-free imports of some pulses, including red lentils and yellow peas. This decision was largely impactful, given India’s status as the world’s primary importer, producer, and consumer of these essential protein-rich commodities.
According to government and industry spokespeople, who provided information on the condition of anonymity, India imported a towering 4.65 million metric tons in the fiscal year concluding March 31, 2024. This figure eclipsed the 2.53 million tons documented in the preceding year and represented the apex since fiscal 2018.
Reflecting on the monetary side, the value of imports for the year took a proportionate leap, soaring 93% to encapsulate $3.75 billion. This steep climb in volume and value of imports can be attributed to the synergy of diminished production rates and the government’s strategic maneuvers to slash import duties in a bid to temper domestic prices in the lead-up to the national elections.
A prominent dealer aligned with a global trade house in Mumbai spoke to the magnitude of the spike in imports, citing a notably high demand for red lentils and yellow peas. Additionally, the mentioned dealer revealed an uptrend in the imports of black gram.
The intricate political landscape didn’t deter the influx of red lentil imports from Canada, which more than doubled to reach approximately 1.2 million tons, despite the friction due to geopolitical events including the assassination of a Sikh separatist leader. Continuing on this import trajectory, India’s procurement of yellow peas displayed a steady increase from Russia and Turkey, notably since the implementation of duty-free imports in December, as per a trader based in New Delhi.
To address the domestic production gap, the magnitude of India’s imports didn’t stop with just red lentils and yellow peas. The country expanded its embrace to include pigeon peas and chickpeas, rounding out the strategy to counteract the insufficient local yields, cited the Delhi-based trader.
Historically, India’s pulse imports have spanned various countries, with Canada, Myanmar, Australia, Mozambique, and Tanzania among the key contributors to its import portfolio. This diversity in sourcing points to India’s strategic approach to ensuring a steady inflow of these vital dietary staples.
The South Asian giant’s latest import statistics have echoed across the global agricultural markets. The increased demand from India has played a pivotal role in propping up global pulse prices, delivering significant benefits to the export-heavy economies of their trading partners. Moreover, this surge has facilitated a reduction in the pulse inventories held by the leading exporting nations.
This turn of events in the pulse market has underscored India’s significant influence on global agricultural trade dynamics. As the country continues to navigate the delicate balance between domestic production, consumer demand, and international import policies, the ripples are felt far and wide by farmers and traders alike across the international pulse industry. As a central player in this space, India’s actions will likely continue to shape market trends and dictate the tempo for this sector in the foreseeable future.
