Louis Dreyfus Company’s Bold Move to Feed India’s Pulse Demand 

In a strategic play that aligns with India’s massive demand for plant-based protein, the global agricultural merchant Louis Dreyfus Company (LDC) has cemented its role as a key supplier, becoming the second-largest exporter of pulses to India. This move is part of LDC’s deeper foray into the Indian market, which now includes plans to set up domestic processing mills, signaling a long-term commitment to the world’s largest pulse consumer . 

The Strategic Pivot to Pulses 

In September 2024, LDC made a decisive shift by establishing a dedicated global business unit for pulses. For a company with over 170 years of history in agricultural trading, this was more than just adding another product line; it was a targeted strategy built around a clear geographic focus: India. 

As Sumeet Mittal, CEO of LDC India, explained, the logic was inescapable: “India is the largest producer, largest consumer and largest importer of pulses” . Prior to this, LDC traded pulses “on and off,” but the creation of a separate unit has allowed the company to concentrate its efforts and rapidly ascend to the top tier of global pulse merchants, now ranking among the top three globally . 

This rapid growth underscores a well-identified supply-demand gap. Despite being a agricultural powerhouse, India’s domestic pulse production has struggled to keep pace with its consumption needs. A report from Agriculture and Agri-Food Canada highlights this stark reality: India is a net importer of pulses with a trade deficit of US$2.4 billion in 2023. That year, it imported $3.1 billion worth of pulses, with lentils alone making up $1.3 billion of that total . 

Table: India’s Pulse Import Profile (2023) 

Navigating the Complex Indian Pulse Market 

LDC’s success hinges on its ability to nimbly navigate India’s complex and often volatile pulse market. The company’s sourcing strategy is global, leveraging its international network to bring the right products to India. 

According to Mittal, Canada and Australia are the “prima donnas” of India’s pulse imports . Canada is a primary source for yellow peas and lentils, while Australia supplies chickpeas and lentils. The company is also experimenting with smaller quantities from emerging origins like Argentina and Russia . 

However, the trading landscape is frequently shaped by government policy. A recent challenge was the Indian government’s decision to impose a 30% import duty on yellow peas, effective from November 2025 . Such tariffs can disrupt trade flows and create market jitters. Mittal noted that while the trade was anxious for months before the decision, the clarity ultimately made the market more active. Despite some domestic price firming, the impact was not as severe as feared . 

This is not an isolated incident. The Indian government has also scrapped the 11% duty on cotton imports until December 31, 2025, a move LDC views as a step in the right direction for other agricultural sectors . These shifting policies require traders like LDC to be highly adaptable and risk-aware. 

Beyond Trading: Deepening the Roots in India 

LDC’s ambition extends far beyond being just a trader. The company is actively exploring plans to set up pulses processing mills in India . This is a strategic move to integrate deeper into the value chain. 

Currently, LDC is studying milling capacities across different states to identify the ideal locations, with central or western India being potential candidates . This expansion into processing is a natural progression for LDC in India, where it already operates an edible oil refinery in Kandla and a coffee processing mill in Karnataka . 

By moving into processing, LDC aims to: 

• Get closer to the consumer: Moving from a bulk supplier to a potential consumer-facing brand. 

• Add value domestically: Processing raw pulses into ‘dal’ (split, skinned pulses) ready for the kitchen. 

• Build a more resilient supply chain: Controlling more stages of the value chain mitigates risks and improves efficiency. 

This strategy is encapsulated in Mittal’s vision: “Getting into the value chain, getting deeper and closer with the consumers will be the strategy in India” . 

The Bigger Picture: Protein Demand and Food Security 

The driving force behind LDC’s push into pulses is a powerful, long-term global trend: the rising demand for plant-based protein. Pulses are packed with protein, carbohydrates, and dietary fiber, making them a nutritional cornerstone for vegetarian diets and health-conscious consumers globally . 

Mittal directly linked LDC’s strategy to this “protein demand across the world, especially from vegetarian sources” . This trend is particularly pronounced in India, where pulses are a dietary staple. The government itself has launched initiatives like “Bharat Dal” and “Bharat Atta” to ensure that pulses, along with staples like wheat and rice, remain affordable and accessible to households . 

Furthermore, pulses play a vital role in sustainable agriculture. They improve soil health by fixing nitrogen, reducing the need for synthetic fertilizers, and their cultivation helps in better soil management and water conservation . LDC’s own work in regenerative agriculture for cotton in Maharashtra demonstrates its understanding of these benefits . 

LDC’s Established Presence and Broader Impact in India 

While the pulses business is new, LDC is not a newcomer to India. The company first established its presence in the 1950s and has grown into a leading agribusiness player . Its operations span various platforms, including cotton, coffee, and rice. 

This established footprint provides a strong foundation for the new pulses venture. For instance, LDC’s “Jagruti” cotton project, launched in 2022, started with 7,500 farmers and has now expanded to cover 26,000 farmers . The project educates farmers on sustainable practices and pest control, helping them reduce cultivation costs and improve productivity. The expertise gained from such farmer engagement programs can be directly applied to building a sustainable and traceable pulse supply chain. 

Table: LDC’s Broader Agricultural Projects in India 

A Look Ahead: The Future of Pulses in India 

Louis Dreyfus Company’s strategic pivot to pulses is a telling sign of the commodity’s growing importance in global food security and trade. For India, having a major global player deepen its investment helps stabilize a critical food supply line. For LDC, it represents a significant opportunity to grow in a market whose fundamentals are robust. 

The planned processing mills will bring LDC closer to the end-consumer, allowing it to capture more value and build a more defensible market position. As the global population continues to seek sustainable and affordable protein sources, the humble pulse is poised for a renaissance. With its new dedicated business unit and integrated strategy, Louis Dreyfus Company is positioning itself at the very heart of this quiet revolution, betting big on its ability to feed India’s enduring hunger for pulses.