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Informist, Monday, Nov. 18, 2024

 

Reported by Shreya Shetty

 

MUMBAI – Prices of chana were up in key spot markets across the country on Monday, but are seen falling due to the availability of cheaper imports, traders said. Prices of tur and moong were steady, they said.

 

CHANA prices in Akola in Maharashtra were up by INR 75 from Friday at INR 6,875-INR 6,900 per 100 kg, due to a temporary rise in demand, Ankit Kedia, a local trader, said. Arrivals were steady at 300 bags (1 bag = 50 kg).

 

However, prices will return to their downtrend soon due to the availability of cheaper imports from Australia, Kedia said. The availability of yellow peas, a cheaper substitute for chana, is also pushing prices down, he added. The country has imported 1 million tonnes of yellow peas as of September during 2024-25 (Apr-Mar), according to data from the Ministry of Commerce and Industry.

 

The chana crop, the production of which fell 10% on year to 11.04 million tonnes last year, is likely to see an uptick, according to the traders. "We see chana acreage rising by anywhere between 5-10% on higher realisation, good monsoon," Satish Upadhyaya, vice-chairman of India Pulses and Grains Associations, had said in a webinar on Thursday.

 

TUR prices in Akola, Maharashtra, were steady at INR 10,550-INR 10,600 per 100 kg, Kedia said. Arrivals were steady at 500 bags (1 bag = 50 kg).

 

Despite a shortage of tur in the domestic market, prices are seen falling further in the next 15 days or until the arrivals of the new crop begin in full swing as buyers hold back purchases in anticipation of a further drop in prices, Kedia said. "If there is a lot of pressure in terms of demand once the new crop arrives, prices could even rise," he said.

 

The overall weather and conducive monsoon have instilled a positive sentiment among tur traders, who see a considerable rise in kharif production, despite prolonged rainfall that extended till October. 

 

However, imports, too, are likely to rise on the back of increasing demand. "Despite a rise in production, we estimate imports to rise by 7% on year, touching almost 1 million tonnes in 2024-25 (Apr-Mar) on rising demand. However, we see imports falling next year onwards to 800,000 tonnes due to rising acreage and production," Kunal Parakh, owner of Full Circle Commodities, a global brokerage house, said at the webinar. India consumes about 4.50 million tonnes of tur per year.

 

URAD prices in Lalitur in Uttar Pradesh were steady at INR 6,000-INR 8,000 per 100 kg, according to the association . Arrivals were steady at 2,500 bags (1 bag = 50 kg). Prices of urad in Solapur, Maharashtra, were also steady at INR 6,100-INR 8,500 per 100 kg, according to the association.

 

The first kharif estimates of urad production, which stood at 1.29 million tonnes, were "much lesser than expected", Rajesh Agarwal, executive member of Premier Pulses, said. Around 10-15% of the crop faced damage due to the excess rains, bringing numbers down. The late arrival of the southwest monsoon also limited the sowing period for the pulse, bringing output down, he said.

 

Even with an estimated output of 1.69 million tonnes of urad for the year, which includes rabi production, the country would experience a shortfall in supply, Agarwal said. However, India will make up for the shortfall with imports from countries such as Myanmar.  End

 

Edited by Tanima Banerjee

 

 

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