April 4, 2024
Michelle Dennis talks to Anurag Tulshan, a seasoned member of the GPC Board and founder of Esarco Exim Pvt Ltd about the India’s current pulse market dynamics and future prospects.
Over the past 24 years, I've had the privilege of being associated with the Global Pulse Confederation, serving on the board for nearly 15 years before taking a brief hiatus and now returning. GPC stands as a beacon for the pulse trade and industry worldwide, with India playing a pivotal role in shaping international pulse markets.
Recognizing India's significant influence, my goal this time around is to foster continuous communication with the Indian government and policymakers in New Delhi. By keeping them informed about global pulse market dynamics, we aim to ensure that India remains an active participant, thereby stabilizing and bolstering the international pulse trade. By doing so, we can mitigate potential market fluctuations and ensure stability in both domestic and international pulse trade arenas. Through open communication channels and informed decision-making, we aim to strengthen India's position as a key player in the global pulse trade landscape.
I am proud to say that our event was a resounding success. We welcomed over 750 delegates from 46 countries, making it a truly international gathering. The convention garnered significant media attention, and our partnership with Nafed played a crucial role in its success. Notably, it was the first convention to attract high-level attendance from the Indian government, including union cabinet ministers, ministry secretaries, diplomats, and other senior officials. Nafed's collaboration ensured representation from key stakeholders, contributing immensely to the event's positive outcome.
Looking ahead, the realm of pulse protein is garnering significant attention, with numerous facilities worldwide focusing on the fractionation of pulses to produce proteins like pea or lentil protein. As the global trend toward vegetarianism and veganism continues to gain momentum, the demand for pulses is on the rise.
Moreover, in countries like ours, where average incomes are increasing and lifestyles are improving, there's a growing preference for high-quality products, with consumers willing to invest more for superior goods. Major multinational corporations are also tapping into the pulse milling sector, introducing packaged branded pulses that resonate well with consumers. This burgeoning sector represents a promising opportunity, with pulse milling capacities expanding in India and notable companies venturing into this segment of the industry.
In India, the majority of pulse farming happens on smallholder farms, often passed down through generations and mainly in areas dependent on rainfall rather than irrigation. Despite this traditional setup, we're seeing a surge in agriculture startups stepping up to collaborate with cooperatives or groups of farmers in specific regions.
These startups are making a difference by providing financial support to farmers, offering guidance on fertilizers, weather patterns, and even suggesting which crops to plant. It's a positive trend, but there's still much ground to cover.
While the government is offering incentives to farmers and cooperatives involved in the pulse sector, there's a collective acknowledgment that there's more work ahead to fully optimize and modernize pulse farming practices in India.
The dedication of the Indian government to achieving self-sufficiency in pulses is truly remarkable. Their proactive approach is evident in various initiatives, such as consistently raising the MSP of pulses to incentivize farmers and ensuring procurement at MSP rates even when market prices fall short. Agencies like Nafed and NCCF play a crucial role in this mission by diligently sourcing pulses from farmers across the country.
Moreover, the government's commitment extends to investing in research on seed varieties to enhance yields over time. Equally commendable is their ongoing engagement with farmers, providing valuable knowledge and guidance to improve pulse cultivation practices. These combined efforts have led to a notable increase in pulse production year after year, signaling promising progress in achieving self-sufficiency. It's a testament to the collective determination and collaborative spirit driving this important endeavor.
Amidst production fluctuations domestically, we've been advising our clients to secure their positions by continuing to import pulses steadily over the past year and into the current one. Notably, there's been a significant influx of yellow peas from Canada and the Black Sea region, with bulk vessels arriving at ports across India. Government policies have been transparent and strategic, evidenced by their recent decision to permit duty-free imports of urad, toor, and masoor until March 2025. These forward-looking measures not only support trade but also signal to international markets the demand for pulse crops, encouraging increased production for India's benefit. This move acknowledges India's shortfall in these products and aims to ensure that consumers can access pulses at reasonable prices.
However, it's crucial to note the government's vigilance in preventing market speculation and distortion. Balancing the interests of farmers and consumers is no easy task, but it's a delicate act the government is navigating adeptly to maximize returns for farmers while keeping prices affordable for consumers.
As our population continues to grow, it's inevitable that the demand for pulses will also rise in the coming years. Thankfully, our import activities can be ramped up as needed, especially if government policies provide long-term clarity and incentives for foreign producers. Countries like Canada, Australia, the USA, and Black Sea nations such as Russia and Ukraine have ample land and potential to boost production, particularly if India signals its interest as a buyer.
Recently, Australia has shifted its chana production focus away from us, redirecting it to markets like Pakistan, Bangladesh, and the UAE. However, if India were to signal a need for chana in the future and adjust its policies accordingly, I'm confident that Australian farmers could swiftly increase their production to meet our demand. Ultimately, timing is crucial, and our government must send clear signals at the right moments for other countries to respond to our needs.
When there's a shortfall in a particular crop like Urad or black matpe, we look to imports to bridge the gap. Myanmar has traditionally been the sole supplier of matpe, but we're working to diversify our sources. Leveraging our strong relationships with trading companies and shippers in Myanmar, we facilitate imports to India on their behalf.
To reduce our dependency on Myanmar, our government has sought to cultivate black matpe in Brazil. This initiative has yielded positive results, with significant quantities of black matpe now sourced from Brazil. We anticipate further growth in Brazilian black matpe production, gradually lessening our reliance on Myanmar. I believe this will be incredibly beneficial for our nation, and we anticipate Brazil ramping up its matpe production each year to meet our needs. Additionally, we can explore the possibility of cultivating other lentil varieties in Brazil, further diversifying our import sources and enhancing supply stability.
READ THE FULL ARTICLEDisclaimer: The opinions or views expressed in this publication are those of the authors or quoted persons. They do not purport to reflect the opinions or views of the Global Pulse Confederation or its members.