Battling retail inflation, Centre to resume Bharat chana dal sales at subsidised rate of ₹70/kg this week

“The pulse will now be available at ₹70 per kg, an increase of ₹10 from the previous price, the first person said. “The discounted chana dal will be sold until December. With the expected arrival of about 1.3 million metric tonnes of chana from Australia, starting in the first week of November, prices of this essential food item are expected to come down," this person said.

The average retail price of chana dal is ₹95/kg, which is 14.5% higher than ₹83/kg last year.

The annual retail inflation rate, based on the All-India Consumer Price Index (CPI), rose to 5.49% in September from 3.65% in August. This was the highest retail inflation rate since December 2023, when it was 5.69%. The inflation rate for pulses and products was 9.81% in September, the ministry of statistics & programme implementation said on 14 October.

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The sale of government-procured chana dal retailed under the 'Bharat' brand, which started in July last year, was discontinued in June after late rainfall and severe heat conditions curtailed output. Production of the gram declined to 11 million tonnes in FY24 from 12.2 million tonnes in FY23 and 13.5 million tonnes in FY22, according to data from the ministry of agriculture.

About 300,000 metric tonnes of chana dal have been allocated for distribution under the Bharat dal scheme, the first person said. The pulses are processed and packed by the National Agricultural Cooperative Marketing Federation of India Ltd and the National Cooperative Consumers' Federation of India Ltd.

Comfortable stock

Unlike subsidized chana dal, masoor dal will be sold under the Bharat dal scheme at ₹89/kg, almost matching the market price, whereas moong will be sold at ₹107/kg, the same as when it was first launched in December. Currently moong dal is sold at ₹123/kg.

“All pulses under the Bharat brand will be available in 1-kg packs and will be sold through Kendriya Bhandar outlets and most big retail chains such as Big Basket and Reliance Retail," the second person said. “We have a comfortable stock of chana."

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About 300,000 metric tonnes of moong dal and 25,000 tonnes of masoor dal have been allocated for distribution under the Bharat brand, this person said.

As of 21 October, the retail price of chana dal in Delhi has risen to ₹100/kg, representing a 13.6% increase from ₹88/kg a year ago. Masoor dal is priced at ₹90/kg in the city.

The resumption of Bharat dal sales highlights how the government is trying to balance affordability with inflationary trends and assumes significance given that pulses play a crucial role in India's food inflation due to their significance as a staple and a key source of protein.

“The decision comes at a time when the festival season, including Diwali, is around the corner, and chana dal is commonly used to prepare sweets and various other food items for the festivities," said Ashim Sanyal, CEO of Consumer Voice. “This move is expected to provide much-needed relief to consumers, particularly those belonging to low-income groups."

The production of all pulses declined to 24.5 million tonnes in FY24 from 26 million tonnes in FY23 and 27.3 million tonnes in FY22, according to agriculture ministry data.

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As per consumer affairs ministry data, pulse imports have increased significantly in recent years, up 44% in CY2023 to 2.99 million tonnes from 2.07 million tonnes in CY2022. Imports until July this year stood at 1.4 million tonnes.

India imports tur dal from Mozambique, Tanzania, Malawi and Myanmar; urad from Myanmar and Brazil, and masur dal from Canada, Australia, Russia and Türkiye.