Pulses Price Could Surge Due To Not Enough Rain Pulses Region

Pulses prices could be the next spoiler after Tomato in the war against inflation, with a below-average monsoon in August driving down the sown area for pulses in the Kharif season by over 10% from a year earlier.

Retail inflation reached a 15-month high of 7.4% in July due to a 37% increase in vegetable costs, while prices for pulses have also been rising rapidly in recent months, up to 13.3% in July from 10.6% in June.

The price of pulses like tur dal and moong dal, which increased by 34.1% and 9.1% respectively in July, is expected to continue to rise, according to economists. This is due to the fact that the overall area of dals that have been sown-114.9 lakh hectares as of August 18-is unlikely to significantly increase due to insufficient rainfall at the end of the sowing season.

The southwest monsoon was 6% below its long-period average (LPA) as of August 18, and some States, including as Uttar Pradesh, Bihar, Jharkhand, and Kerala, are still experiencing insufficient rainfall. The nation's reservoir levels are also lower; as of August 17, 2023, they were just 62% of total capacity, down from 76% for the previous season.

In comparison to last year, reservoir levels are much lower in the Western region (68% capacity versus 84%), Eastern region (38% capacity versus 52% capacity), and Southern region (53% capacity versus 87% capacity).

In an effort to curb rising domestic costs, the government commenced importing tomatoes in Nepal this month. Last week, onions were subject to a 40% export tax. Tur dal importers, millers, and traders were given stock limitations in June, and the Consumer Affairs Ministry subsequently announced plans to buy 12 lakh tonnes of the dal this year, a 35% increase over imports last year.