India Diversifies Urad Dal Imports, Sources from Brazil
In a strategic move to reduce import dependence on a handful of countries, India has initiated the procurement of urad dal from Brazil for the first time. This decision comes amidst efforts to address a shortfall in domestic urad dal production.
India has welcomed its first consignment of approximately 3000 tonnes of urad dal from Brazil, marking a significant shift in procurement strategies. The move aims to mitigate risks associated with relying heavily on a single source for imports.
Government's Efforts to Secure Imports
Officials have confirmed ongoing discussions with Brazil and Argentina to diversify urad and tur dal imports, considering the inherent risks of depending solely on one country for supplies. India anticipates importing around 20,000 tonnes of urad dal from Brazil this year to meet domestic demand.
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Exploration of New Sourcing Options
India traditionally imported urad dal solely from Myanmar under a memorandum of understanding (MoU). However, disruptions in supplies due to internal security issues prompted the exploration of alternative sourcing avenues in South America, given the conducive weather conditions for urad and tur cultivation in Brazil and Argentina.
Import Trends and Policies
In 2023, India imported nearly 3 million tonnes of pulses, including lentils, tur, and urad, primarily from countries like Australia, Canada, and Myanmar. The recent allowance of duty-free import of yellow pea aims to address supply gaps, with imports expected mainly from Canada and Russia.
Government Policies and Trade Agreements
To ensure stability in imports, India has adopted a consistent policy by exempting tur, urad, and masoor from import duties until March 2025. Trade agreements with countries like Mozambique and Malawi underscore India's proactive approach to securing pulse imports and stabilizing prices amidst inflationary pressures.
Inflationary Pressures and Production Challenges
Despite record pulse production in the 2022-23 crop year, inflation in pulses remains a concern. Inflation rates, particularly for arhar, moong, gram, and urad varieties, have persisted in the double digits, reflecting challenges in production and distribution.
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