What are the factors affecting pulse prices in India

Pulse prices in India may experience a significant increase due to deficient rain affecting sowing.
  • Drought conditions: Insufficient rainfall during the monsoon season can affect the sowing of pulses in India. Drought conditions can lead to lower crop yields, resulting in a decrease in the overall supply of pulses and subsequently driving up prices.
  • Pests and diseases: Outbreaks of pests and diseases can damage pulse crops, reducing their harvestable yield. This can cause a decrease in supply and an increase in prices.
  • Government policies: The Indian government implements various policies such as minimum support prices (MSP) and import/export restrictions on pulses. These policies can directly impact the availability and prices of pulses in the market.
  • International factors: Fluctuations in global prices, exchange rates, and international trade policies can affect the import-export dynamics of pulses in India, influencing their prices in the domestic market.
  • Market dynamics and demand-supply balance: Factors like changes in consumer preferences, population growth, dietary habits, and overall demand for pulses can influence prices. If demand surpasses supply, it can cause an increase in prices.
  • Logistics and transportation costs: The cost of transporting pulses from production areas to consumption centers plays a significant role in determining their prices. Factors like fuel prices, infrastructure, and logistical challenges can impact the overall cost and, subsequently, the final prices.
These factors collectively contribute to the volatility of pulse prices in India.
Answered a year ago
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