Prices of chickpeas hit a document excessive of ₹65,103 per ton final week and have risen practically 33% in a yr. File
| Photo Credit: KAMAL NARANG
India’s determination to permit duty-free imports of chickpeas is unlikely to assist convey down native costs as even document imports could be unable to compensate for the massive drop in native manufacturing, business officers advised Reuters. Instead, Indian consumers are turning to cheaper yellow peas, which the Government has additionally allowed to be imported obligation free.
Prices of chickpeas, additionally identified as chana, hit a document excessive of ₹ 65,103 per ton final week and have risen practically 33% in a yr. Chickpea accounts for practically half of India’s whole pulses manufacturing and is a staple throughout the nation.
Limited provide, shortfall in manufacturing
Limited availability of chickpeas on the earth market might drive India to go for imports of yellow peas, which can be found in abundance, officers mentioned.
“Even if we assume that India buys all available chickpea supplies from Australia, Tanzania, and other countries, it won’t be more than 2,50,000 metric tons,” mentioned Bimal Kothari, chairman of the India Pulses and Grains Association (IPGA). “However, the shortfall in production is much bigger.”
India imported round 1,50,000 tons of chickpeas in 2023-24. The Government estimates chickpea output this yr might match final yr’s manufacturing of 12.27 million tons, however business gamers estimate an round 25% drop in manufacturing, as the world below cultivation is decrease and yields additionally fell due to antagonistic climate.
Markets have been receiving practically a 3rd decrease provides than regular from the brand new season crop, indicating a drop in manufacturing, mentioned Nitin Kalantri, a pulses dealer primarily based at Latur. Imported chickpeas are much more costly as Australian suppliers raised costs after India allowed duty-free imports, he mentioned.
Yellow peas imports up
Australian chickpea costs rose from round A$900 final week to above A$1,100 a ton this week on the hope of demand from India. However, Indian consumers usually are not signing new import contracts, mentioned a Mumbai-based supplier with a worldwide commerce home. “There is no import parity in chickpeas. Instead, traders are importing yellow peas, which are cheap and used as substitutes for chickpeas,” the supplier mentioned.
India final week additionally allowed obligation free import of yellow peas till October 31, 2024. Yellow peas, imported primarily from Canada, Russia and Turkey, can be found at half the price of chickpeas, and their provides are plentiful on the earth market, encouraging Indian consumers to enhance yellow peas imports, mentioned Kothari.
