An empirical examination of import demand for pulses in India

India is the largest producer and importer of pulses in the world. Since 1970, the Indian food economy has undergone major policy reforms, including trade liberalisation, that had the effect of opening up its domestic pulse market to international trade. This market is very lucrative and of major significance to the world pulse economy. Therefore, given the increasing evidence linking import demand and economic variables, an understanding of the impact of these variables on import demand for pulses in India is warranted. The import demand functions for total pulses, chickpea and lentils were estimated by autocorrelation regression procedure using time-series data for the period 1970 through to 2000. Empirical results indicate that real GDP, population, urbanisation, exchange rate and relative price are key determinants of import demand for pulses in India.