Government's Directive On Pulse Procurement Raises Concerns On Supply And Demand: Will Talks with Myanmar Help Solve the Issue?

The central government’s directive to Tamil Nadu, Andhra Pradesh, and Gujarat to procure chickpeas and masoor instead of pigeon peas for the Public Distribution System (PDS) has raised concerns about the supply and demand of these important pulses. While Gujarat has agreed to reduce the consumption of pigeon peas under the PDS, Andhra Pradesh is hesitant to follow suit. This directive has left Tamil Nadu with no choice but to purchase pigeon peas from the open market. The government is urging these states to increase the use of chickpeas and masoor instead of pigeon peas to reduce pigeon peas demand due to their limited supply and high prices.

Demand And Supply Imbalance

According to official sources, the National Agricultural Cooperative Marketing Federation of India (NAFED) has already purchased a significant amount of chickpeas and masoor from farmers during the current rabi marketing season. However, there is very little stock of pigeon peas left, and the government is making every possible effort to increase its supply, availability, and reduce its price. Pigeon peas import is affected due to inadequate stocks in African countries and higher prices in Myanmar, while domestic production has also decreased, leading to limited arrivals of pigeon peas in the markets. Despite high prices, there are no signs of any decrease in the demand and consumption of whole pigeon peas, resulting in an imbalance between demand and supply.

Myanmar To Increase Supply & Decrease Price?

India and Myanmar are currently in talks at the diplomatic level to increase the toor dal supply and reduce its price. The combined share of toor and urad dal in India’s total pulse imports is around 70%, with Myanmar being the primary supplier of both these pulses. However, toor production in India has decreased this year, and exporters in Myanmar have increased the prices as soon as they received this information. Due to a decrease in supply and availability in the domestic market and strong demand, the price of toor dal is currently high and rising.

OFB’s Insight

The government’s directive to procure chickpeas and masoor instead of pigeon peas under the PDS may have a positive impact on the supply and demand of these important pulses in the long run. However, the current situation of limited supply and high prices of pigeon peas and toor dal may continue to affect the common man’s food security and the country’s overall economy. The talks with Myanmar to increase the toor dal supply and reduce its price are a positive step towards resolving this issue. The government must continue monitoring the situation closely and take necessary steps to ensure the steady supply and availability of pulses in the domestic market, especially during the festive season.

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