NEW DELHI (Reuters) – Food prices are rising in India, but there are signs that imported pulses and a large chickpea crop in the field could limit future increases.
India’s trade minister Anand Sharma told a news conference India has no shortage of pulses or edible oils.
“Some of the pulses are in adequate quantity, which has helped in bringing down the prices,” Sharma said.
“I am sure that as more and more pulses are released, after imports, it will cool down the markets and the prices.”
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Strong pulse prices in Canada in the past year are largely the result of strong Indian demand as it imported lentils and peas to make up for domestic shortages.
Prices of pulses have helped push up food inflation in India, which in turn has stoked political unrest in parts of India, including New Delhi.
Food prices rose 17.9 percent in the 12 months to Jan. 30, higher than an annual rise of 17.6 percent in the previous week.
India, the world’s biggest producer, importer and consumer of pulses, has allowed duty-free imports of pulses to bridge the widening gap between domestic demand and supply.
“There is no shortage when we now look at the pulses,” he said.
“We are also comfortable when it comes to the availability of edible oils,” Sharma said.
India’s summer crop was slashed by a weak monsoon, but the outlook for the winter crops, including chickpeas or chana, is improving, pressuring the price of that food lower.
India has forecasted winter pulse production at 10.53 million tonnes, up from last year’s 9.88 million.
Desi chickpea prices last year had developed a large premium to Canadian yellow peas, a good substitute, resulting in strong exports to the subcontinent.
