Wholesale, retail pulses price trends diverge

Prices of most pulses and dals surged in Oct as supplies dwindled

Wholesale prices of pulses have corrected from a peak in October, but retail prices are still 50-70 per cent higher than those of a year ago. Pulses have a 2.38 per cent weight in the Consumer Price Index.

Prices of most pulses and dals surged in October as supplies dwindled. Government counter-measures softened wholesale prices. However, retailers have pocketed most of the benefits.

“Last year, output from domestic sources was low due to a deficient monsoon. Now, harvesting in Canada, Russia and other exporting nations has started. There is no upside in pulses prices,” said the spokesperson of the India Pulses and Grains Association (IPGA). The previous kharif pulses production was affected by lower acreage with output estimated at 5.56 million tonnes, a decline from 5.63 million tonnes from a year ago. India is set to import a record five million tonnes of pulses this year.

“But prices will stay elevated due to continuous shortages in India and in global markets,” said Sri Prakash Goenka, director of U Goenka & Sons, a city-based pulses importer.

  Indian traders have booked heavily in overseas markets, resulting in 2.5 million tonnes of pulses delivered between October and January.

Pradeep Jindal, director of Jindal Overseas, a Delhi-based pulses importer, said. “We sell pulses at Rs 85-110 a kg but retailers sell at Rs 150-160 a kg. The government should impose a 20 per cent profit ceiling on retailers.”