The disparity between demand and supply in the domestic market has driven up retail prices, particularly for tuar/arhar dal, creating financial strain for Indian households. The price surge is evident, with tuar dal prices soaring from INR 120/kg in January 2023 to approximately INR 220/kg at present. Premium or branded unpolished tuar dal is even reaching INR 245/kg online.
India, which produces 26-27 million tonnes of pulses annually, faces self-sufficiency in chana and moong but relies on imports for tuar and masur due to shortages. Despite government warnings against hoarding and alleged cartelization in tuar dal imports, both persist, contributing to higher retail prices. Maharashtra, Karnataka, and Uttar Pradesh, the top three tuar dal producers, are grappling with the impact of erratic monsoons and wilting disease.
In response to the situation, the Central government reduced stock limits for tuar and urad dal last September, aiming to prevent hoarding. However, India's heavy reliance on African countries for tuar dal exacerbates the challenges. Last year, India's production was severely affected by excess rainfall and floods, leading to supply shortfalls.
To address the issue, the government aimed to boost domestic availability by importing 12 lakh tonnes of tuar dal in the current fiscal year, a 35% increase from the previous year. However, the struggle persists, with low domestic production continuing to hinder efforts.
A recent survey conducted by LocalCircles reflects the impact on households, with 43% reporting coping strategies for the doubled retail prices of tuar dal in the past 12 months. While 57% haven't reduced consumption and are paying more, 32% have cut back, and 11% switched to lower-priced or unbranded alternatives.
This price hike may lead to more consumers abandoning tuar dal, a crucial protein source for many households, especially vegetarians and vegans. The government's intervention is crucial to curb hoarding, facilitate farmer procurement, and ensure a stable supply chain, preventing this essential dal from becoming unaffordable. Additionally, brands with large volumes should optimize prices to build long-term consumer trust during such challenging times.
