How Pulses policy of Import Impacts the Pulses Market

Open pulses import has declined prices.

Pulses are the Indian staple foods consumed regularly. Some of the pulses are imported and grown domestically. Rising domestic pulses demand boosts the pulses imports in the country. Similarly, last year the government shifted the pulses policy from restricted to open pulses imports. This resulted in a decline in pulses prices by 10-15%. Affects farmers' pulse trade and further leads them toward a financial loss. On the other hand, boosted farmers to move toward growing other varied crops. Through this farmers hold a great chance of enjoying at least a good profit margin. This import practice done by the government boosted the Pulses Supplier in India which gained traction by earning a great profit margin.

This affects and impacts the farmers in both aspects.

The changes made in the import policies. The central government asked the state government to monitor under the essential commodities Act, any pulses price spikes. As the pulse prices during this changed policy system were so close to minimum support price levels, this affected the traders who were surprised by the pulse policy change.

After India opens up the pulses import, which led to pulses prices dropping. This activity has softened the pulses prices in the Indian market. But simultaneously, increased pulses prices in the international market. Pulses prices drop resulted in the decline in the crop growing area. Which encouraged farmers to shift towards growing Kharif crops, named cotton and soybean.

The instructions from the central government to the state government of monitoring pulses prices under the Essential Commodities Act, Rajasthan asked their traders to report their weekly pulses stock and transaction. To ensure no rise in the pulse prices during any trade activities. The free import of pulses can lead to minimizing self-sufficiency.

In countries like South Africa, Myanmar, Kenya, and Malawi. The giant companies procured bulk stock of moong, urad, and tur dal. This results in higher products being purchased at higher prices.

Also, Read - Health Benefits of Organic Pulses