The price of pulses has dropped up to 20% in the wholesale market after rising rapidly for months, and is expected to remain bearish, calming concerns of food inflation that has been a key obstacle in reducing interest rates. India is the world's largest producer, consumer and importer of pulses, a key source of protein in vegetarian diet. According to the Indian Institute of Pulses Research, Kanpur, 17 million tonne of pulses are grown on 24 million hectare, but demand far exceeds supply, leading to imports of 3 million tonne from Australia, China, Canada, Africa and other regions. Prices are expected to remain bearish with the onset of harvesting of tur (pigeon pea), urad (black gram) and chana in the country.

Source - http://economictimes.indiatimes.com