Govt plans crackdown to ensure fair pricing in besan market

New Delhi: Indian gram flour (besan) manufacturers are using cheap yellow pea to make besan but charging far higher prices, as if it were made from premium chana dal or Bengal gram, two people aware of the matter said.

The Union government made yellow pea imports duty free in December 2023 to stabilize the prices of pulses, but its utilization pattern has shown unintended consequences.

Given India’s demand for besan to make batter, sweets, bread and snacks, duty-free yellow pea imports have surged to 2.2 million tonnes in the December 2023-September 2024 period. Yellow pea imports were negligible prior to December 2023.

“The Centre is now working on a plan that will require manufacturers to clearly disclose the ingredients on besan packaging, ensuring that consumers benefit from lower prices, as besan made from yellow peas is much cheaper than that made from whole chana," the people cited above said.

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“The ministry will also be writing to the food regulator, the Food Safety and Standards Authority of India (FSSAI), to ensure that the labelling requirements for besan made from yellow pea and chana are strictly enforced across the industry," the first of the two persons mentioned above said.

“Although yellow peas are safe for consumption, consumers deserve to know whether they are paying for a premium product or a cheaper alternative."

“The concern is that traders should not make excessive profits from it. Ideally, mixed besan should be available in retail at below ₹50 per kg—not at the current ₹110 per kg," this person said.

The high margins raked in by gram flour manufacturers can be gauged from the fact that while yellow pea costs ₹35 per kg, the chana dal price averages ₹74 per kg. In comparison, besan is