Dal mills are gearing up for an anticipated surge in retail demand for pulses during the upcoming festive season. The rise in consumption of pulses in the retail market has prompted these mills to enhance their processing capacities and procurement efforts.
According to industry insiders, the increased consumption of pulses in retail markets has triggered a corresponding boost in processing activities within dal mills. Recognizing the elevated demand, mills have proactively increased their processing capacities to meet the rising requirements. However, it’s worth noting that a spike in the prices of tur and urad pulses has led to higher operational costs for the mills.
Dinesh Agrawal, Secretary of the All-India Dal Mill Association, commented on the situation, stating, “Consumption of pulses has gone up, and this has given a fillip to processing activities in dal mills. Mills have increased processing to cater to rising demand. But the spike in rates of tur and urad has hiked the operative cost.”
Despite the cost challenges, dal mills are optimistic about sustained demand for pulses in the retail market during the festive season.
Price increases have been observed across various pulse varieties. Tur dal has seen a jump from Rs. 115 per kg to Rs. 130 per kg; urad dal has risen from Rs. 90 per kg to Rs. 100 per kg; chana dal has increased from Rs. 60 per kg to Rs. 70 per kg; and moong dal’s price has fluctuated from Rs. 85–90 per kg to Rs. 90–100 per kg.
Madhya Pradesh stands as a significant hub for dal mills, with around 700 mills in the state, of which 160 are located in Indore. The All-India Dal Mill Association has put forth a demand for a 1.70 percent exemption from mandi tax on pulses sourced from other states, specifically for processing purposes. Suresh Agrawal, the association’s president, advocated for extending the tax exemption to various other pulses such as urad, moong, masoor, and matar. Such an exemption, he believes, would invigorate mills and bolster their competitiveness in the market.
To further support dal mills, the association has proposed that the National Agricultural Cooperative Marketing Federation of India prioritize these mills when importing pulses. The association’s members voiced these suggestions during the annual general meeting held on August 20.
As the festive season approaches, dal mills are striving to balance increased processing capacities with price dynamics to ensure a steady supply of pulses to meet consumer demand.