French agri-trading giant Louis Dreyfus Company (LDC) has rapidly become India’s second-largest exporter of pulses, just a year after launching its dedicated global pulses business unit. Sumeet Mittal, CEO of LDC India, shared this news during an online interaction, highlighting the company’s significant growth and future plans in the Indian market.
LDC, with a history of around 170 years and operations in over 100 countries, established its global pulses business unit in September 2024. While the company traded pulses before, this was the first time it was organised as a distinct business unit. The unit has a strong focus on India, recognising its position as the world’s largest producer, consumer, and importer of pulses.
Mittal explained that LDC is now among the top three global merchants of pulses. They import large quantities of chickpeas, yellow peas, and lentils. Additionally, the company is sourcing and trading pulses within India. The primary sources for India’s pulse imports are Canada and Australia. Canada is a key supplier of yellow peas and lentils, while Australia provides chickpeas and lentils. LDC is also experimenting with yellow pea imports from Argentina and notes some imports from Africa.
Speaking about the Indian government’s decision to impose a 30 per cent import duty on yellow peas, Mittal stated that it has brought more clarity to the market. He mentioned that the trade had been uncertain for the past few months about the potential duty. Since the decision was made, trading activity has increased. While the prices in the domestic market have firmed up slightly, the overall impact on prices has not been substantial.
The strategic decision to create a dedicated pulses business unit stems from the growing global demand for protein, particularly from vegetarian sources. Mittal noted the increasing trend of including pulses in diets for nutritional benefits. He also pointed to government initiatives like ‘Bharat Dal’ and ‘Bharat Atta’, which aim to ensure pulses are a regular part of household diets alongside staples like wheat and rice. This aligns with LDC’s focus on catering to this protein demand.
Looking ahead, LDC is exploring the possibility of setting up pulse processing mills in India. This move would allow the company to become more involved in the value chain. Mittal indicated that LDC is identifying suitable locations and states for these processing facilities. This strategy aims to bring LDC closer to consumers and participate more deeply in the Indian market, moving beyond just importing and distributing pulses. LDC already operates an edible oil refinery in Kandla and a coffee processing mill in Kushalnagar, Karnataka. A pulse processing mill would complement its existing primary processing capabilities.
Beyond pulses, LDC’s other businesses are also performing well. Mittal welcomed the Indian government’s recent decision to remove the 11 per cent duty on cotton imports, calling it a positive step. This move is expected to help Indian textile mills, which were facing challenges due to higher domestic cotton prices compared to global rates and US tariffs. The duty-free window is open until December 31, and discussions are ongoing to make this change permanent.
Mittal anticipates that India will need to import cotton due to potential yield reductions caused by recent rain. LDC India has also focused on strengthening the distribution of its edible oil retail brand, Vibhor, in Northern India.
The company’s ‘Jagruti’ cotton project, launched in 2022, has expanded significantly. It now covers 26,000 farmers, up from the initial 7,500, and has helped reduce cultivation costs and improve productivity. LDC has also initiated a project on regenerative agriculture in cotton in Maharashtra, training farmers on sustainable farming practices that improve soil health and reduce the need for chemicals.
In the coffee sector, LDC is working with suppliers on sustainable coffee production, verifying farmers who produce certified coffee. They have also distributed vermi-compost units to farmers. With the upcoming European Union Deforestation Regulation (EUDR), LDC is ensuring its coffee products meet European standards.
Furthermore, LDC is involved in a project addressing water salinity in Gujarat’s Kutch region, focusing on improving water security for small and medium farmers.