Economy
Pulse of a nation: Of daal and strained international relations
Summary
- India's consumption of lentils ranges between 2.6 and 2.8 million metric tonnes annually, of which 1.5 million tonnes are imported—mainly from Australia, Canada, Russia, Turkey and the US.
When ties between India and Canada nosedived last year over allegations of an Indian hand in the killing of a Khalistani activist, one unlikely loss was supplies of daal, a major source of protein in India.
Enter Australia.
In 2023, India imported 687,558 tonnes of lentils from Canada, accounting for 45.41% of its lentil imports, and 775,994 tonnes from Australia (51.25%).
This year Australian lentil exports have risen to 366,433 tonnes, for 66.3% of India’s total lentil import from January to July 2024 alone, government data showed.
By contrast, Canada exported 145,735 tonnes of lentils to India in this period, amounting to a mere 26.4% of imports.
India’s total import of red lentils (masoor) stood at 1.51 million tonnes in CY2023.
Also Read: India may rely less on imports for its pulse proteins in FY25, says industry body
India's consumption of lentils ranges between 2.6 and 2.8 million metric tonnes annually, of which 1.5 million tonnes are imported—mainly from Australia, Canada, Russia, Turkey and the US.
This fall in Canadian lentils in the Indian import basket coincided with the worsening of India’s relations with Canada in 2023 over growing Khalistani terrorism, which India views as a threat to its national security.
The situation worsened when Canadian Prime Minister Justin Trudeau alleged India was involved in the assassination of Hardeep Singh Nijjar, a prominent Khalistani activist in Canada.
“The import of pulses has been ongoing for many years and will likely continue due to the limited land available. However, this year, there has been a slight increase in the sowing of pulses, and the yield is also expected to rise," said Chirag Jain, partner, public sector consulting, Grant Thornton Bharat, a consultancy.
“Achieving higher production will largely depend on expanding the cultivated area. The government's programme to procure an unlimited quantity of pulses at the minimum support price, aimed at increasing the area under pulse cultivation, will play a crucial role in ensuring self-sufficiency in pulse production," said Jain.
Also Read: Govt directs big retail chain to lower pulse prices in line with drop in wholesale prices
As part of its ‘Atmanirbhar Bharat’ initiative, the Centre has launched the e-Samridhi portal through the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers' Federation of India Limited (NCCF). This portal facilitates the registration of farmers who are adopting crop diversification, particularly those cultivating pulses.
What has the government assured?
The government has also assured that it will procure 100% of the pulses grown by farmers registered on the portal at the minimum support price (MSP). This ensures a secure market and fair prices for farmers, encouraging greater participation in pulse cultivation and supporting the nation's goal of self-sufficiency in food production.
The government has set itself a target to make India self-sufficient in pulses production by December 2027.
Also Read: Centre plans stringent policy measures for reducing pulses and edible oil imports in its 100-day agenda
The reason for the falling sales of Candian pulses to India remains unclear.
India Pulses and Grains Association (IPGA) chairman Bimal Kothari said that despite the strained diplomatic relations between India and Canada, the bilateral pulse trade continues to be ‘business as usual’.
"The lentil import from Australia has seen a steady growth in volume over the years primarily due to the good quality of the Australian lentils as well as competitive prices and has nothing to do with the strained India-Canada diplomatic ties whatsoever," Kothari told Mint.
The India-Australia Economic Cooperation and Trade Agreement (ECTA) was signed in April 2022, while negotiations between India and Canada on the free trade agreement (FTA) were halted due to political tensions in September 2023.
Queries emailed to consumer affairs ministry remained unanswered till press time, while responses from Australian and Canadian high commissions are awaited.
