Sector Trend Analysis – Pulse trends in India

Pulses in India

Pulses, dried beans or dried legumes, are recognized for their low fat, high protein, high fiber, nutrient density and low-glycemic index. Upon consumption, pulses produce a gradual rise in blood glucose levels creating a longer lasting feeling of satiety.^{Footnote 1} In addition to its nutritional advantage, pulses have low carbon and water footprints which make them an integral part of the sustainable farming system. It is estimated that the water footprint for producing one kilogram of meat is approximately five times higher than that of pulses.^{Footnote 2}

Pulses are crops that constitute a vital part of the Indian diet (as nearly 43% of all Indians are vegetarian), and are an important protein source. In urban areas, 48% of Indians identify as vegetarian compared to 41% in rural areas.

The agricultural crop year in India is year round and is classified into two main seasons: (i) Kharif and (ii) Rabi based on the monsoon. The Kharif cropping season is from June to September during the south-west monsoon and the Rabi cropping season is from October to March (winter season). Pulses are grown in both Kharif and Rabi seasons. India's pulse production is highly dependent on the southwest monsoon (June to September), a period where India receives around 70 percent of its annual rainfall. Indian pulse production in turn affects export opportunities for Canadian producers; the poorer the monsoon, the greater the opportunity of supplying Canadian pulses in this market.

The Kharif crops include rice, maize, sorghum, pearl millet/bajra, finger millet/ragi (cereals), arhar (pulses), soybean, groundnut (oilseeds), cotton etc. The Rabi crops mainly include wheat, barley, oats (cereals), chickpea/gram (pulses), linseed, mustard (oilseeds) etc.^{Footnote 3}

India ranks first globally in terms of area and production of pulses; however, it remains a net importer of pulses due to a high and continuously growing consumption that exceeds current domestic production capabilities, creating a supply-demand gap. The major pulse crops in India include bengal gram (chana) or chickpea, red gram (arhar) or pigeon pea, green gram (moong), black gram (urad) and lentils (massar). Mothbean, lathyrus, horsegram, peas and red kidney beans are the other pulse crops produced and consumed in India.^{Footnote 4}

Production

Indian pulse production is concentrated in a few states. In 2013-2014, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Andhra Pradesh and Karnataka accounted for nearly 80% of the total area that produces and harvests pulses.^{Footnote 5}

Chickpeas were the largest crop in India with production valued at 9,075.0 tonnes in 2017, an increase in CAGR of 0.7% from 8,832.5 tonnes produced in 2013. Chickpeas are cultivated mainly in the states of Madhya Pradesh, Rajasthan, Maharashtra and Uttar Pradesh.^{Footnote 6}

Red gram or pigeon peas are produced in the states of Maharashtra, Karnataka, Uttar Pradesh and Andhra Pradesh, with Maharashtra accounting for almost a third of total red gram production in India in 2012-13. In terms of red gram consumption, those situated in urban areas consume more than rural Indian consumers within the states of Andhra Pradesh, Chhattisgarh, Gujarar, Karnataka and Maharashtra.^{Footnote 6}

Dry beans were the second largest production crops in India with volumes registering 6,390.0 tonnes in 2017. Pigeon pea crops attained the largest CAGR with production increasing by 12.7% from 2013 to 2017, while dry peas decreased in production by a CAGR of −3.4% also in the same period. Lentils are produced in the states of Madyha Pradesh, Uttar Pradesh and Bihar.^{Footnote 6}

Trade overview

Overall, global pulse imports decreased by a compound annual growth rate (CAGR) of −4.3% from 2014 to 2018. India was the largest global market with imports of pulses valued at US$1.1 billion in 2018, despite the largest decrease in growth of −20.6% from 2014 to 2018 when imports were valued at US$2.7 billion in 2014. India subsequently, attained the highest market share registering 12.7% in 2018. Iran and China had the largest CAGR's of 18% and 15.7%, with imports representing US$287.2 million and US$765.9 million respectively, in 2018. Further, Egypt and Italy experienced decreases in growth of −3.8% and −3.4% from 2014 to 2018, yet attained market shares of 4.6% and 3.5% worldwide accordingly.

Within the Asian market, imports of pulses also experienced a decline in growth of −6.1% from 2014 to 2018 as imports decreased in value from US$2.3 billion in 2014 to US$1.8 billion in 2018. India again, was the largest importer of pulses from 2014 to 2018, representing a 25.6% market share in 2018. Nevertheless, overall growth declined by −17.4% from US$982.9 million in 2014 to US$457.6 million in 2018. Pakistan was the second largest importer of pulses within the Asian market with imports valued at US$236.3 million in 2018 and the largest CAGR registering 20.2% from 2014 to 2018. Notably, Saudi Arabia attained the second largest decline in growth (−11.8%) with imports decreasing from US$79.6 million to US$48.1 million during the same period.

Competitive landscape

India has a diverse supply network of pulse providers. In 2018, India's top three suppliers of pulses were Myanmar (US$293.2 million, 591.5 million kilograms), Canada (US$112.8 million, 309.8 million kilograms) and Mozambique (US$104.1 million, 217.4 million kilograms).

The total pulse imports for India decreased by a CAGR of −20.6% from 2014 to 2018 attributable to governmental imposed restrictions, as import values declined from US$2.7 billion in 2014 to US$1.1 billion in 2018. Consequently, each pulse product imported to India similarily experienced a decline in CAGR registered within the same period. During this 5 yr period, dried, shelled beans experienced the largest decline in CAGR reporting a −39.5% decrease from 2014 to 2018 and dried, shelled lentils experienced the second largest decline in CAGR registering a −34.1% decrease during the same period.

The top five imported products to India in 2018 were dried, shelled beans (HS:071331) valued at US$264.4 million, dried, shelled peas (HS: 071310) valued at US$233.7 million, dried, shelled pigeon peas (HS: 071360) worth US$199.4 million, followed by dried, shelled chickpeas (HS: 071320) valued at US$129.2 million and dried, shelled kidney beans (HS: 071333) valued at US$101.1 million.

Myanmar (US$293.3 million), Canada (US$112.8 million ) and Mozambique (US$104.1 million) represent the top three suppliers of total pulses (HS: 0713) to India in 2018, representing 48% of the corresponding market share in 2018. Of note, Myanmar has supplied four (HS: 071331- beans, HS: 071360-pigeon peas, HS: 071320-chickpeas and HS: 071333-kidney beans) of the top five pulse commodities supplied to India in 2018.

Canada remains the second largest supplier of pulses to India valued at US$112.8 million in 2018, behind Myanmar (US$293.2 million), despite its recent decline in CAGR of −42.1% since 2014. Among the top five pulse commodities imported by India in 2018, Canada supplied four of the five with dried peas representing the largest commodity supplied, valued at US$52.1 million (22.3% market share) followed by chickpeas valued at US$2.4 million, kidney beans valued at US$826,167 and shelled vegetables valued at US$41,167.

Canada's performance

In 2018, Canada exported over US$2.1 billion worth of pulse products to the world, with 26.7% of these products exported to China, 11.1% to the US and 5.8% to India.

In 2018, India imported US$1.1 billion of the world's pulse products, with Canada accounting for 10.6% or US$112.8 million of those import values.

India's total pulse imports from Canada declined −42.1% from US$1.0 billion in 2014 to US$112.8 million in 2018. Lentils represented the largest pulse product supplied from Canada with values of US$57.5 million, followed by peas valued at US$52.1 million and chickpeas valued at US$2.4 million in 2018.

Consumer trends

Pulses, long considered the 'poor man's meat,' are consumed equally by India's rich and poor as it is one of the less expensive sources of protein and contributes to the Indian tradition of vegetarianism. Indians constitute about 70% of the world's population of vegetarians.^{Footnote 7} In addition, pulses constitute the most common source of noncereal protein in India, where consumption is higher than that of any other protein source.

Consumption of pulses in India is around 22-23 million tonnes per year, as reported by the Indian Agricultural Research Institute. From 2011 to 2012, four pulses (pigeon pea, green gram, lentil, and black matpe) together made up about 64 percent of the consumption of pulses and pulse products in rural India and 68 percent in urban India. Pigeon peas (33%), products of pulses and chickpeas (11%) were consumed more in urban areas, whereas green gram and lentils (26%) were more popular in rural areas. Split chickpeas were equally consumed (10%) in each area.^{Footnote 7}

The consumption of Bengal gram (chickpeas) is highest in the Punjab, Haryana, Bihar and Maharashtra and is higher in the urban than in the rural sector. Chickpeas are a major staple of the Indian diet and are consumed in a number of different forms; the two most common are as a whole grain product or as flour. Throughout India, peas are cooked and eaten as a snack food. Split peas and pea flour are used and quite often blended with more expensive pulses such as chickpeas. Lentils are often added with rice and consumed as dal. Dal is an entrée that is eaten by everyone in India and is served by roadside vendors to five-star restaurants.^{Footnote 8}

Red gram or pigeon peas are consumed in Andhra Pradesh, Chhattisgarh, Gujarat, Karnataka, Maharashtra, Tamil Nadu and Madhya Pradesh. Again urban India consumes more than rural India.^{Footnote 9}

Lentils have recently shown a decrease in consumption in the urban sector and an increase in rural consumption. The states that reported the highest consumption of lentil are Assam, Bihar and West Bengal.

The value of pulses as a source of protein is important because among both poor and middle-income households, protein intake levels have declined since 1988, until recently, as consumption has improved in relation to increased production levels. The rising cost of food has certainly been relevant to the decline

in protein intake.^{Footnote 7} However, despite general declining consumption, paired with rising food costs, the total demand for pulses and the processed food derived from them, has increased. Factors such as an increasing population, rising household income, rising numbers of two-earner couples, product diversification, greater urbanization and it's associated lifestyle changes, in addition to changing tastes and preferences are contributing to greater consumer demand and consumption trends.^{Footnote 7}

Pulses and legumes are increasingly sought after by consumers and used by food producers - for their taste, versatility, sustainability, and nutritional features. Both are nutritionally diverse crops that can be successfully utilized as food ingredients or a base for new product development. They are rich in protein, dietary fibre, complex carbohydrates, and B-vitamins, signifying that pulses and legumes can provide a range of health benefits such as reducing heart disease, weight management, and diabetes.^{Footnote 10}

As discussed in Mintel's 2017 Food and Drink Trend "Power to the Plants", the desire for natural, "cleaner," simple, and flexible diets leads consumers to seek plant-based ingredients, like pulses and legumes. Pulses and legumes can also help food and drink products build a healthy reputation and provide interesting ethnic flavours.

Product launch analysis

Interest in the use of pulses and legumes in food formulations is growing and is seen emerging in various food and drink categories, such as meal and meal centres, and snacks. The most common pulse ingredients used globally are soybean, peas, and chickpeas. (Ingredient insight: pulses and legumes, February 2017)

According to Mintel GNPD 2019, there were 1,691 new product launches in India containing pulses as an ingredient between 2014 and 2018. Of those products, 1,680 were launched as food products, while the remaining 11 products were launched as drink products.

The top five pulse ingredients in food and drink launches in India between January 2014 and December 2018 were as follows: Black gram (urad bean) 66.3%, pulses 23.4%, red lentil 9.4%, green lentil 2.2% and yellow split peas 1.9%.

The yearly amount of new product launches with pulses as an ingredient in India has gradually declined from 474 products in 2014 to 269 products launched in 2018. Almost 100% of products launched between this period contain vegetarian as a top claim and were sold as flexible packaging, launched either as a new product or new variety/range extension. Supermarkets and mass merchandise/hypermarkets were the primary distribution channel for launching new pulse products, while traditional retail outlets 'Kirana" have declined as a launch outlet for pulse products from 92 outlets in 2014 to 27 outlets in 2018.

Examples of new products

Shahi Masala Papad

Source: Mintel, 2019

Company	DNV food products
Brand	DNV food products
Category	Bakery
Country	India
Store type	Mass merchandise/hypermarket
Date published	December 2018
Product source	Shopper
Launch type	New variety/range extension
Price in US dollars	0.88

DNV Food Products Shahi Masala Papad is now available. This vegetarian product retails in a 200 gram pack featuring the Facebook, Twitter and Instagram logos and ISO 9001:2008 certification.

Organic andouille chicken sausage

Source: Mintel, 2019

Company	Prataap snacks
Brand	Yellow diamond
Category	Snacks
Country	India
Store type	Mass merchandise/hypermarket
Date published	January 2018
Product source	Shopper
Launch type	New variety/range extension
Price in US dollars	1.10

Yellow Diamond Khatta Meetha Namkeen (Sweet and Sour Snack Mix) is suitable for vegetarians. The ready-to-eat product is ISO 22000: 2005 and Hazard Analysis and Critical Control Points (HACCP) certified, and retails in a 400 gram pack.

Opportunities for Canada

Despite the recently imposed governmental trade restrictions on pulses, India remains a promising market for Canada built on an established trade relationship. India's large and increasing population and predominantly vegetarian households, coupled with a growing urbanization and consumption that exceeds domestic production, make India a prime market for Canada's pulse products.

Given the expected continued growth in the Indian pulse market, Canada's recent supply of lentils and peas represent a continued opportunity for Canadian producers to increase their exports, in addition to other pulse products that can be provided by Canadian growers.

Notwithstanding the measured exports evidenced in 2018 regarding Canada's contribution to India's pulse market, the opportunities still remain for Canada to maintain and increase its presence and distinct brand image within the Indian market.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Overview of Trade Commissioner Services in India
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Sector Trend Analysis – Pulse trends in India
Global Analysis Report

Prepared by: Laurie Bernardi, International Market Research Analyst

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