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Pulses

Background:

  • India is the largest producer of pulses in the world with a share of 25% of global production.
  • However, India is a net importer of pulses as the demand is higher than the production by about 4-5 Mio tonnes, pa, as the average annual Production is 15 Mio tonnes and consumption is about 20 Mio tonnes.
  • About 24 Mio hectares are under cultivation with 600 kg/ ha output. This output per ha has not significantly improved in last 30 years and ranges between 500-600kg/ha.
  • India witnessed a record breaking increase of about 18 per cent in pulse production in 2010-11. The estimated pulse production reached upto 17.29 million tonnes against 14.66 million tonnes in 2009-2010

Macro situation:

  • The demand-supply gap primarily exists as Pulses production grew by 1.4% CAGR in last 20 years, compared 2% CAGR in the Population. The deficit results in imports.
  • High prices of Pulses pushed the per capita consumption levels low to about 12-15/kg from 27 kg/pa in 1960's, which suppressed the overall demand
  • However, imports still grew at about 10% CAGR in last 20 years, as population growth was faster in this period.
  • If the per capita consumption can rise again to 60's levels, the demand would substantially increase, needing higher imports into India / focus on additional production within India.
  • Imports into India are primarily from Canada (40% of the total imports), Myanamar (27%) and Australia (9%) and balance 24% from other countries.

Value Chain

SUPPLY CHAIN