Bharat Dal, coming soon to an online grocer near you

New Delhi: Virtual shelves of online grocers such as Amazon, Flipkart and Swiggy may soon see the debut of an unlikely item: Subsidized dal from the Government of India.

The ministry of consumer affairs is expected to mandate e-commerce companies to offer cheaper pulses under the Bharat Dal scheme on their platforms, two people aware of the matter said.

The platforms, also including BigBasket, Blinkit, Zepto and Jio Mart, had earlier committed to retail subsidized pulses but most of them have yet to make the essential commodity available on their websites, limiting the impact of the scheme, the people said on the condition of anonymity.

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While quick-commerce companies Blinkit and Zepto have started selling subsidized pulses, that is not enough, the first person said. “All players have to sell it," the person said, “enabling consumers in urban and semi-urban areas to benefit from the scheme."

Crucial in inflation

Moong and masoor to chickpeas play a crucial role in India's food inflation. While the pace of price rise for the key staple and a source of protein eased in October, demand continues to outstrip production. The output of pulses in India rose to 24.5 million tonnes (mt) in FY24 from 16.3 mt in FY16, but was short of the demand that increased to about 27 mt.

The Bharat Dal scheme was introduced last year to offer pulses at cheaper prices when inflation in the category had soared to double digits. The first phase was rolled out in July last year due to lower gram (chana) production and ended in June 2024. The second phase began in October this year.

While online marketplaces such as Amazon and Flipkart can only host sellers and are not allowed to directly sell products to consumers, they agreed to become partners at the start of both phases.

“Since they have agreed to be our retail partners, they must make pulses available to consumers. It will benefit millions of consumers who prefer buying through online portals," the second person quoted earlier said. “It has also come to our notice that some e-commerce players are displaying the product but marking it as out of stock. This needs to be fixed."

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Queries emailed to the e-commerce companies and the consumer affairs ministry remained unanswered at publishing time.

“The buying pattern of consumers has changed significantly and the non-availability of discounted pulses on e-commerce platforms is adding to the woes of consumers, who are forced to buy essential pulses at higher prices," said BB Singh, a former official of the Indian Council of Agricultural Research. “As long as subsidized pulses are available, they should be made accessible to consumers. The reach of e-commerce is expanding to tier II and III cities. It's the best way to benefit consumers from government schemes."

India’s e-commerce market is projected to increase from $58.97 billion in 2024 to $101.40 billion by 2029, according to market research firm Statista, growing at a CAGR of 11.45%.

Production drop

The production of gram (chana), a major contributor to India’s pulses basket, 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.

Retail inflation based on the consumer price index eased to a three-month low of 5.48% in November from a 14-month high of 6.21% in October, statistics ministry data showed.

Under the Bharat Dal scheme, chana dal is sold at ₹70 per kg, whole chana at ₹58 per kg, masur dal at ₹89 per kg, moong dal at ₹107 per kg, and whole moong at ₹93 per kg.

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By comparison, as of 17 December, the average retail price of chana dal was ₹94.16 per kg, up 13.73% from last year. Moong dal was ₹114.30 per kg, down 1.8% from last year, and masur dal was ₹89.36 per kg, down 4.92% from last year, consumer affairs ministry data showed.

According to the ministry, Bharat Chana Dal is available through 535 mobile vans and 983 stationery outlets in 198 cities across 37 states and Union Territories.

Mint reported on 12 December that the government may also extend the duty-free import of yellow peas by a few more months, possibly until February, to help lower prices and address shortages of tur (pigeon pea) and chana (gram). Experts said this move was a temporary measure to shield consumers from rising prices.