iGrain India - The Indian government is focusing on increasing imports of pulses from Australia and Brazil to enhance domestic supply, stabilize prices, and reduce reliance on traditional suppliers like Myanmar and Canada. These efforts are especially relevant during India's off-seasons for pulses, where domestic production may not meet demand.
Key Points of the Policy Shift:
- India has traditionally depended on Myanmar and Canada for pulse imports. However, with the growing instability in some regions and the desire to ensure more consistent availability, India is seeking to increase imports from other countries like Australia and Brazil.
- The crops in Australia and Brazil are harvested at different times than in India, so importing pulses from these countries during India's lean seasons could balance supply and demand effectively.
- Brazil has emerged as a crucial supplier of urad (black gram), with significant growth in its exports to India. In 2023, India imported just 4,102 tonnes of urad from Brazil, but by October 2024, the figure surged to 22,000 tonnes. This increase indicates Brazil's growing capacity to meet India's needs, particularly for tur (pigeon pea) and urad.
- The government anticipates that Brazil will play an even bigger role in meeting India's future pulse demand, thereby reducing dependence on Myanmar.
- Australia has been a key supplier for gram (chickpeas) and lentils. As of the last week of October, fresh shipments of Australian gram have started arriving, which has helped control the price rise of gram in India.
- The production of gram in Australia is expected to grow from 490,000 tonnes last year to 1.33 million tonnes this year, potentially increasing its exports to India.
- A major move by the Indian government includes duty-free imports of Desi gram starting in May 2024, further boosting Australian imports.
- By diversifying the sources of pulse imports, the Indian government hopes to keep prices stable. A reduction in price volatility will help domestic consumers and ensure that pulse supply remains constant throughout the year.
- Supply Diversification: Increasing imports from Australia and Brazil reduces the risk associated with over-dependence on Myanmar, especially as Myanmar's political and economic situation remains unstable.
- Price Stabilization: Importing pulses during lean domestic seasons, when local production lags, can help maintain consistent prices and availability in the market.
- Bilateral Trade Strengthening: The government’s efforts include strengthening ties with Brazil, as evidenced by high-level discussions between Brazilian officials and Indian authorities.
- Long-term Planning: Brazil’s capacity to supply pulses, particularly urad and tur, is expected to continue growing, which will be crucial in mitigating fluctuations in domestic prices.
- Expanding Australian Market Access: The increasing pulse production in Australia and new policies like duty-free imports signal a long-term commitment to fostering Australia’s role as a key pulse supplier to India.