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Informist, Monday, Dec. 23, 2024

MUMBAI – Prices of tur are expected to remain low in the near term due to increasing arrivals of the new kharif crop and a fall in buying interest, the India Pulses and Grains Association said in its weekly report on Monday. Prices could also be weighed down by weak market sentiment, as pulses traders face significant losses due to the new arrivals, the report said.

Traders are hesitant to make purchases despite empty processing pipelines, the report said. Although the crushing margins are good, with the large price gap between raw and processed tur, it has not motivated millers to increase their purchases.

The pressure on prices due to arrivals is likely to reach its peak after Jan. 15, the report said. Prices are likely to fall further by INR 1,000-INR 2,000 per 100 kg between February and mid-March. However, prices have dropped sharply from their peak levels already, suggesting that the market might be oversold, according to the report.

Prices of tur in the week ended Saturday in Kalaburagi, Karnataka, fell by INR 1,737 from the previous week to INR 7,311-INR 8,213 per 100 kg, according to the association. Similarly, prices of tur in Akola, Maharashta, fell INR 1,800 from last week to INR 8,200 per 100 kg.

Farmers may hold back from selling if prices fall further, and the government might need to step in and ramp up its procurement at the minimum support price. Additionally, if more dal mills resume crushing activities, prices of tur could be supported at lower rates, the report said.

Prices of tur fell in the week ended Saturday due to increased arrivals of the new kharif crop from Karnataka, Marathwada in Maharashtra, and expected arrivals from Vidarbha in Maharashtra, the association said. The sharp decline in prices made stockists and millers cautious, postponing purchases until prices stabilise, it said.

Prices of the Myanmar-origin lemon variety of tur also fell, tracking the drop in domestic tur prices, as well as the anticipation of a larger new crop in Myanmar, the report said. Similarly, prices of African tur dropped, tracking domestic prices. Prices were also weighed down due to millers showing limited interest in tenders for the sale of tur put out by states, as they favoured the much cheaper tur in domestic markets and the shipments from Myanmar.  End

Reported by Shreya Shetty

Edited by Tanima Banerjee

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