India’s decision to allow duty-free imports of chickpeas is unlikely to help bring down local prices, as even record imports would be unable to compensate for the significant drop in domestic production, industry officials told Reuters.
Chickpea prices in India hit a record high of 65,103 rupees ($779.75) per ton last week, rising nearly 33% in a year. Chickpea accounts for nearly half of India’s total pulses production and is a staple food in the country.
However, the limited availability of chickpeas in the global market could force Indian buyers to opt for much cheaper imports of yellow peas, which India has also allowed to be imported duty-free.
“Even if we assume that India buys all available chickpea supplies from Australia, Tanzania, and other countries, it won’t be more than 250,000 metric tons,” said Bimal Kothari, chairman of the India Pulses and Grains Association (IPGA). “However, the shortfall in production is much bigger.”
India is estimated to have imported around 150,000 tons of chickpeas in 2023/24. The government estimates chickpea output this year could match last year’s production of 12.27 million tons, but industry players estimate a 25% drop in production due to a decrease in the area under cultivation and lower yields.
As a result, Indian buyers are turning to yellow peas, which are available at half the cost of chickpeas and have abundant supplies in the global market, particularly from Canada, Russia, and Turkey.
“There is no import parity in chickpeas. Instead, traders are importing yellow peas, which are cheap and used as substitutes for chickpeas,” said a Mumbai-based dealer with a global trade house.
The increased demand for yellow peas is expected to further support prices, but it provides a more affordable alternative for Indian consumers compared to the record-high chickpea prices.