Emotions Run High in India

PANAMA - Nov 11/15 - SNS -- Emotions continue to run high in the public debate over pulse prices and supply in India, resulting in efforts which sometimes seem contradictory.

The problem facing India seems simple. It is the world's largest consumer of pulses and does not grow enough. It needs to make sure returns from pulses are high enough to encourage farmers to expand output. Because average per capita income is under U.S. $120 per month, there is a political need to keep retail prices from rising.

Significantly, average per capita incomes rose 10% in 2014-15. But, growth is not equally distributed across the population. A large part of the growth in average incomes is likely due to ongoing expansion of the country's middle class and gains among the country's wealthiest. This keeps the price of pulses and food on the front burner of India politics.

The impact of annual increases in the number of middle class Indians is being felt by the country's food service industry. A recent report from TechSci Research predicts the food services market will grow an average of 12% per year through 2020. Rising disposable incomes, changes in urban lifestyle, and interest in trying new foods is driving growth in the sector.