Think soya, if pulses still pinch your pockets after rains -:- Equity Research

'Good' monsoon this year has sworn to upset the trend. Trend, in question, are two consecutive years of drought and rising pulses prices. With La Nina, the weather phenomenon which cools the ocean temperatures, bringing heavy rains, India has witnessed a surge in pulses sowing area across the country. According to recent reports, pulses acreage is 28 percent higher this kharif season. This in turn will boost pulses output in the nation, making lentils 'affordable' for common masses.  Owing to poor rainfall and irrigation facilities, India, the biggest producer and consumer, has also been the biggest importer of pulses. On the back of two continuous dry years, pulses production in FY16 was the lowest in six years. However, the above-average monsoon the country has been experiencing is expected to cool the prices of pulses.  Prices have already come down. Prices of whole tur, yellow peas, chana, urad and moong have corrected significantly. Let's not forget that pulses saw an average price rise of 29.6 percent during the last fiscal year.  But the question is whether by September, when the rains would have come and gone, will pulses will be cheaper? There are three reasons why they may not be easier on your pockets. Retailers who have pulses stocked up at the current prices may want to exhaust their supplies first. Even as they stockpile fresh pulses at reduced prices, they might not be in a rush to pass on price cut benefits to their consumers.  Farmers find cultivating rice and wheat profitable because the government offers them subsidies for water, power, fertilisers, and guarantees a minimum selling price (MSP).  Finally, even with increasing sowing area, pulse yield is likely to remain low on the back of lack of cross-breeding and better cultivating techniques. But there is another way to look at this running shortage: change your source of proteins, says SA Iyer, in his blog . He mentions eggs making up for a high-protein substitute but prefers soyabeans over everything. "After oil extraction, the protein content of soya is 40-48 percent, against 20-25 percent for different dals. Yet, soya's wholesale price is barely Rs 33 a kg. Indian consumers will initially resist a shift from dal to soya. But food habits can be changed if the price is right," he suggests.