The rising imports of yellow peas from Russia and Canada, hitting their highest levels in the last six years, have served to stabilize domestic prices of chana and tur dal. This increase in imports has effectively replaced expensive pulses in sectors such as the snack food industry, hotels and restaurants, street food joints, and the pulses processing industry.
In December, the center permitted duty-free imports of yellow peas amidst a strong bullish trend in prices for the two kitchen staples.
“Import of yellow peas has proved to be a game changer for the pulses market as it has increased the availability of cheaper pulses,” said Harsha Rai, partner, Mayur Global.
“Yellow peas, in various forms such as besan (chickpea flour) and whole peas or splits, are an everyday use commodity. They are not only a staple in street food but also a key ingredient in the rapidly growing snack food industry,” she said.
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A significant volume of yellow peas imported has already entered the distribution network.
“At INR 42/kg, yellow peas are currently the cheapest pulse available in the market. Around 600,000 tonnes have already been imported while another 900,000 to 1 million tonnes are expected to arrive by June,” said Vivek Agarwal, a Maharashtra-based importer of pulses.
Industry executives have stated that yellow peas, whether directly or indirectly, have assisted in alleviating the demand for other pulses, which are currently scarce.
Tur dal has maintained a retail price of at least INR 200/kg for quite some time now. Traders have observed a reduction in demand at such high prices. Despite not being a direct substitute, yellow peas have played a role in indirectly easing the demand for tur dal.
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“Many processors have shifted from other pulses to processing of yellow peas to keep their plants running. Some traders have also shifted away from other pulses to yellow peas, which helped in indirectly reducing the demand for other pulses,” said Rai.
In contrast to African tur dal and lentils, which are only accepted in certain regions of the country, yellow peas are consumed throughout all parts of the nation, particularly as a substitute for chana in out-of-home and snack consumption.
The erratic monsoons experienced last year raised concerns regarding the rabi harvest of chana, prompting the government to lift the restriction on the minimum import price (MIP). Currently, duty-free imports of yellow peas are permitted until April 30th.
Industry experts are monitoring how the arrival of the new crop of chana in the coming weeks influences the government’s decision to extend duty-free import of yellow peas beyond April 30.
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