In a country with a large number of vegetarians, most of whom do not even consume eggs or fish, pulses are the only source of proteins. Consequently, India is one of the largest markets for pulses, though farmers are not very keen on growing them.

Pulses are considered ‘orphan’ crops in large parts of India, with farmers cultivating them only when the monsoons fail and when they do not have access to irrigation. While wheat and paddy are the preferred crops for farmers in many parts of India, pulses are not even considered by many, even as an alternative crop to rejuvenate the soil.

Even in parts of Karnataka and Maharashtra, which lie in the rain-shadow region, marginal farmers prefer raising sugarcane (which guzzles large quantities of water) whenever possible, instead of pulses, though the soil is ideal for a wide range of dals.

Many poor families in India can barely afford pulses, though they are crucial for vegetarians. Awareness about the need for a diet rich in pulses is also low especially in rural areas. Chickpea (or chana) accounts for about half of the annual production of pulses in India.

India’s annual consumption of pulses adds up to about 23m tonnes, but every year the country has to import 3.5m to 4m tonnes of the commodity. Indeed, many farmers in Australia and Canada grow pulses only to cater to the needs of Indians.

The price of pulses has been on the rise in recent years, and India’s dependence on imports has also grown. The country is expected to import about $2bn worth of pulses, adding up to between 4- 4.5m tonnes in the current agricultural year. Between April and November, 2014 India’s pulse imports added up to 3.03m tonnes, 25pc higher than in the corresponding period in 2013.

Importers are now worried that the customs duty exemption on import of pulses may not be extended by the government beyond March 31. The exemption was given to curb the spurt in the price of domestic pulses last year. Suppliers from Australia, Canada and other countries are also rushing huge consignments of pulses, as they expect customs duty to be restored from the new financial year.

Pulse production has also been impacted by the poor monsoons last year. Both the onset and withdrawal of the south-west monsoon was delayed last year, resulting in 30pc of the country recording deficient rainfall. According to the second advanced estimate of the agriculture ministry, pulse output in crop year 2014-15 (which is from July to June) is expected to decline 7pc to 18m. The area under pulses coverage fell from 16.2m hectares last year to 14.59m hectares.

Bimal Kothari, vice-chairman, India Pulses and Grain Merchants Association (IPGMA), expects a rise in the price of pulses following the lower output. Unseasonal showers last month also damaged standing rabi crop in many areas. Poor rains have impacted India’s overall foodgrain production, which is expected to be nearly 8m tonnes lower than the figure for 2013-14. According to government estimates, total foodgrain production will add up to a little over 257m tonnes, as against 264.7mt in the fourth advance estimate for 2013-14.

The deficient monsoon also resulted in lower rabi acreage, which stood at 60.5m hectares in February, as against 64.49m hectares in the same month last year. Lower foodgrain production could result in a spurt in the price of several food items. The government has been battling food inflation for the past few years and it is only now that prices have come under control, allowing the Reserve Bank of India to ease the tight monetary policy of the past few years.

IMPORTERS and processors of pulses are also seeking the setting up of a pulses upgradation fund — on the lines of a similar, but much larger fund for the textile sector — to revive the segment.

Pravin Dongre, president, IPGMA, points out that the setting up of a Rs300bn technology upgradation fund scheme for the textile sector saw huge investments flowing into the sector. He has urged the government to set up a Rs50bn fund for upgradating the pulses sector. Many of the smaller processors are in dire straits and need funding, he adds.

Pulse processing has largely been dominated by the unorganised sector, though in recent years many corporate players have also entered the fray. All the leading retail giants — including Big Bazaar, Reliance Retail and Bharti Walmart — now insist on high quality pulses, which they market under their own brands.

Processors are increasingly upgrading their technology to ensure that they are able to meet the quality needs of the large retailers. Global suppliers of technology are also supplying sophisticated equipment that help them sort the pulses in terms of colour and quality.

Many processors who have deployed the new technology are realising the benefits in terms of lower wage costs (thanks to automation), and sharply reduced wastage. And by ensuring that the various dals are packaged attractively, they are also able to realise better prices.

Interestingly, some growers in north-east Karnataka are now getting more ambitious and are seeking geographical indication (GI) status for pigeon pea (toor dal) grown in the area. And they have a powerful backer in Mallikarjun Kharge, the Congress parliamentarian from the area, who is also the leader of the party in the lower house of parliament.

According to Kharge, farmers grow toor dal as the main kharif crop in Gulbarga district in north Karnataka and the quality of the pulse is unique. Pulse growers in the district are now seeking the GI status for ‘Gulbarga toor.’

Several agricultural products in India have GI status. They include Darjeeling tea, Kangra tea, Coorg orange, Nagpur orange, Mysore betel leaf, Nanjanagud banana, Mysore jasmine, Udupi jasmine, Malabar pepper, Alleppey green cardamom, Mahableshwar strawberry, central Travancore jiggery, Nashik grapes and Byadagi chilli.

Published in Dawn, Economic & Business, March 2nd , 2015

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