Govt to sell tur in open markets to cool prices amid supply crunch

Rising protein-led prices can be a significant driver of inflation and household expenses even as the government has imposed a slew of price-control measures ahead of a series of polls

The Union government will sell an unspecified amount of tur (pigeon pea), a widely consumed pulses variety, from its stocks in open markets to cool prices amid a supply crunch and a delay in the arrival of import shipments, the food ministry said on Tuesday.

Pulses are a common source of protein for most Indians. (AFP)

The arrival of an El Nino weather pattern and a deficient monsoon, 23% below normal as of date, have stoked concerns over elevated prices of pulses, a common source of protein for most Indians.

The food ministry has directed the National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers Federation (NCCF) to offload pigeon peas from federal stockpiles through online auctions among millers, a statement said.

The quantity to be released to the markets will be “calibrated and targeted” until stocks contracted for import arrive in the domestic market. India relies on imports to meet its total domestic demand for lentils, or dals. The government maintains a reserve of pulses to boost supplies in case of a rise in food prices.

Rising protein-led prices can be a significant driver of inflation and household expenses even as the government has imposed a slew of price-control measures ahead of assembly polls in four states and the national election next year.

Overall, the output of pulses as a group in 2022-23, at 27.5 million tonne, is marginally higher than the previous year’s production of 27.3 million tonne, the latest official advance estimates show.

Yet, the gains are fragile. Increasing weather uncertainties can quickly firm up prices if output drops. This year, prices of pigeon peas and black gram (urad) have been elevated because of a patchy monsoon in 2022-23 in rain-fed growing belts in Karnataka, Andhra Pradesh, and Telangana.

Maharashtra, a major tur grower, received unseasonal heavy rains in October 2022. This has led to a drop of 18.3% and 3.7% in production tur and urad, although overall output went up slightly, according to the agriculture ministry’s estimates.

Commodity traders say prices are likely to rule high. Retail inflation in pigeon pea and black gram was 13.7% and 4% in April 2023. India imported 0.89 million tonne of pigeon pea in FY23, while imports of black gram stood at 0.61 million tonne.

“The decision to auction tur from the government’s buffer stock will cool prices, as imported stocks from Myanmar are taking longer to land,” said Abhishek Agrawal of Comtrade.

The government on June 2 imposed limits on how much stocks of pigeon pea and black gram traders can store to prevent hoarding. The central government has asked state governments to step up monitoring of prices and stock positions.