India weighs buffer-stock release as pigeon pea prices rise ahead of festivals

Pigeon pea prices climb on tight arrivals

India is considering measures to restrain pigeon pea prices before the festival season as limited arrivals in producing markets, strong buying by dal mills and expensive imports tighten domestic availability. Business Standard Hindi reported that retail pigeon pea dal, also known as tur or arhar dal, was selling for ₹130-₹160 per kilogram, with prices in parts of the market approaching or exceeding ₹150.

The publication put the average mandi price at about ₹11,394 per quintal. Ministry of Consumer Affairs, Food and Public Distribution data cited in the report showed a more precise national wholesale average of ₹11,393.5 per quintal on 20 September and an average retail price of ₹122.82 per kilogram. The difference between that national retail average and the reported ₹130-₹160 market range indicates substantial variation across locations and sales channels.

Pigeon pea prices have risen about 14% over the past month, 12% over three months and 8% over one year, according to Business Standard Hindi. Market participants attributed the advance to weak monsoon conditions, concerns over the crop and future supplies, higher mill purchases before the festival season and stockholders retaining material in expectation of further gains. Some stockists believe prices could move above ₹15,000 per quintal during the festive period if supplies do not improve.

Buffer stocks could test the rally

Trade representatives are urging the government to release pulses from its buffer stock quickly. Sunil Baldev, president of the Agri Farmer and Trade Association, said the market lacked material and argued that an early release would help control prices. He said pulse traders had suffered losses for the previous two years and had consequently held little inventory this year.

Baldev said the government had a pulse buffer of 4.3 million tonnes, including 1.95 million tonnes of chickpeas, 1 million tonnes of pigeon peas, 900,000 tonnes of mung beans and 560,000 tonnes of lentils. The commodity figures reported by the publication add up to 4.41 million tonnes, above the stated total, and no explanation for the discrepancy was provided. Even so, the reported 1 million tonnes of pigeon peas would represent the most direct instrument for increasing availability in the market covered by the price surge.

The timing and method of any release will determine its effect. Sales that reach mills and wholesale markets promptly could reduce competition for limited arrivals and narrow the gap between mandi and retail quotations. A delayed or modest release may have less impact if festival demand continues to strengthen and stockholders keep withholding supplies.

Costly imports offer limited relief

Imported pulses currently cost more than domestically available supplies, according to the report. Global tensions have delayed shipments and raised freight charges, while high international prices and other costs are forcing importers to sell at elevated levels. That means imports are not exerting the downward pressure on domestic pigeon pea prices that buyers might normally expect during a shortage.

Pulse trader Pukhraj Chopra called for a reduction in the 10% import duty applied to imported chickpeas and lentils. Those products are not direct substitutes in every use, but lower landed costs could broaden pulse availability and ease some pressure across the category. For pigeon pea specifically, traders identified three immediate supports: restricted arrivals in producing markets, strong demand from mills and expensive import parity.

The government has also raised the minimum support price for pigeon peas for the 2026-27 season by ₹450 to ₹8,450 per quintal. The measure is intended to improve farmer returns and prevent prices from falling too low. In the near term, however, authorities face the opposite problem: containing consumer prices without undermining the production incentive created by the higher support price.