Weekly: Selective Pulses Gain This Week, Lockdown Fear to Likely Hit Demand

MUMBAI (Commodities control) – Most pulses, such as Tur, Urad, Masoor, Chana and Kabuli Chana moved higher for the week ended 3rd April, 2021 amid fresh buying activity at lower rates. On the other hand, Moong and White Pea traded flat on limited trade.

However, demand and sale counters in processed pulses reported thin activity. The prices have remained range bound during the past month due to lower demand from consumers. Second wave of corona virus has affected the consumption.

The latest lockdown restrictions -- Government imposing night curfew and restrictions on opening of hotels, restaurants, ban on large gatherings, events, programmes, celebrations and also not allowing more than 50 people to attend marriages could prove detrimental to pulses demand.

However, production of pulses has beenlower this year due to unfavourable climatic conditions. The current situation might be temporary and with passage of time, the demand for pulses would be back.

Weekly Highlights

# DGFT Details Procedures for Import of Quota Toor, Urad & Moong for FY2021-22; Application Deadline 15th April. Import deadline is kept till 31st Mar 2022. Important condition this time is that the selected importers will have ensured to import at least 50% of the allocated quota. If not imported then the importer will be debarred from next year's allocation.
# In the United States, Chickpea can be sown 290,000 acres in 2021, up 7% from the previous year. Small chickpea’s expected planted area is estimated at 59,000 acres, up 22% from 2020. Area expected to be planted for large chickpeas in 2021 is estimated at 231,000 acres, a 4% increase from the previous year. Masoor can be sown 611,000 acres in 2021, up 16% from 2020. White Pea can be sown 893,000 acres in 2021, down 11% from 2020, according to the USDA.
# According to the DGFT website, Pulses reported a drop of 13.88% in its imports during March 2021 vis-à-vis March 2020.

Burma Lemon Tur:

Tur Lemon variety of Burma-origin gained Rs 150 to Rs 6,400/100Kg in Mumbai, due to selected mills’ buying on immediate requirement for crushing.

Moreover, most of the mandis in key regions were closed this week due to Holi and FY ending holiday. It affected the availability of pulses in the spot markets leading to tightness.

Similarly, domestic variety of Tur was also up by Rs 125 to Rs 7,075-7,100/100Kg in bilty trade at benchmark market of Akola.

Meanwhile, millers were facing disparity as demand and sale counter in Tur dal reported thin participation. However, monthly dal counter expected in coming days.

As on March 31, 2021, NAFED has successfully procured 10961.61 MT of Tur at Minimum Support Price of Rs 6,000 in Karnataka, Maharashtra, Gujarat, Tamil Nadu and Andhra Pradesh.

As per market sources, Tur prices are likely to get support at lower rates as seller were inactive. Fundamentals of Tur are strong due to lower yields, lesser old procured stock with government. Although, overseas imports will arrive at regular intervals as the government already issued a total of 6 lakh tonnes quota.

Burma Urad:

Prices of Burma Urad FAQ variety gained Rs 150 at Rs 7,150/100Kg in Mumbai, amid selected millers' trade at lower rates on immediate requirement for crushing despite overseas supplies at Chennai.

However, offtake in processed Urad was limited from wholesale and retail counters.

Similarly, Burma Urad SQ variety in Chennai firmed up by Rs 125 at Rs 7,800/100Kg, whileFAQ variety remained flat at Rs 7,200.

Burma Urad FAQ-SQ varieties traded in the range of $735-$740 per ton & $850-$855, respectively on CNF basis for Chennai against delivery before 30th April. Good parity in import was seen. Ready stock of imported Urad at Chennai is around 1500-1700 containers.

Centre extends the last date for import of 1.5 Lakh MT of Urad for the fiscal year 2020-21, from 31st March, 2021 to 30th April.

As per market sources, Urad prices are likely to get support of Rs 200-300/100Kg for short term period during 1st week of April due to monthly dal counter expected. Moreover, 30-40% of new Urad arrivals in Andhra Pradesh has been already used for consumption and 30-40% will be in process and rest 20% will be holding for stock. But, upcoming supply of summer crop from April-May in Madhya Pradesh and Gujarat are likely to keep prices under check. But, acreage of summer crop Urad will be less as acreage is expected to shift to Moong.

Chana Kantewala (Indore):

Chana prices moved up by Rs 75 at Rs 5,050/100Kg in Indore due to mill buying activity on immediate requirement for crushing and negligible arrivals as major markets this week were closed due to Holi and FY end holidays.

Meanwhile, demand for Chana dal-besan remains thin.

Second wave of corona virus has adverselyaffected the consumption of Chana dal in particular. Major consumption of Chana dal or besan at roadside eateries, in catering industry and hospitality has been lost due to closure or limited attendance leading to write off of demand.

Marketmen will keep a close watch on Chana arrivals at producing centres in coming week.

However, Corporates and stockist are actively purchasing Chana and Pace of procurement by government agency at MSP is likely to improve in coming days, supporting the prices. Moreover, Nafed has stopped selling the old procured stock.

As on March 31, 2021, NAFED has procured 124130.84 MT of Chana at MSP of Rs 5,100 in Andhra Pradesh, Telangana, Maharashtra, Karnataka, Gujarat and Madhya Pradesh.

Similarly, Tanzania-origin Chana in Mumbai also moved higher by Rs 25-50 at Rs 4,650-4,700/100Kg amid mill buying activity.

Sudan and Russia-origin Kabuli Chickpea prices traded higher by Rs 100-150 at Rs 4,750-5,050/100Kg and Rs 5,050-5,200, respectively.

Dollar variety Chana also ruled higher by Rs 100-200 at Rs 8,000-8,500/100Kg in Indore. On other hand, 42-44 & 44-46 count Kabuli Chana declined by Rs 50-100 each at Rs 8,800/100Kg and Rs 8,750, respectively on slack buying at higher rates.

Imported Masoor (Mumbai):

Canada crimson variety Masoor along with Australia Masoor in Mumbai continued to trade higher by Rs 100-125 each at Rs 5,825-5,900/100Kg and Rs 6,000, respectively on improved mills’ buying support and depleting stock of imported Masoor.

Similarly, Canada crimson variety Masoor at Hajira-Mundra port are each up by Rs 125 at Rs 5,825/100kg and Rs 5,775, respectively, while at Kandla it was priced higher by Rs 100 at Rs 5,700/100Kg.

As per market sources, depleting stock of imported Masoor and no further overseas supply due to higher parity are likely to support prices at lower rates. Corporates and importers continue to accumulate stocks in the domestic market and shifted to crush domestic Masoor due to less imported stock.

White Pea (Kanpur):

New White Pea prices remained nearly unchanged at Rs 4,950/100Kg (dal quality) and Rs 5,125 (40% filter quality) at Kanpur market, due to limited buying as major markets this week were closed due to Holi and FY end holiday.

As per Kanpur based trader, prices of White Pea is likely to get support due to negligible carryover stock. Millers-traders will actively purchase as the pipeline is empty. Stockiest activity and bulk buying from big companies may be witnessed at lower rates in the coming days.

Moreover, imported White pea stock is also negligible after India banned import of the yellow peas. Customs department has not released the imported pulses yet, as the release will contradict government’s existing policy.

Moong (Jaipur):

Moong prices steadied at Rs 6,500-7,200/100Kg at Jaipur market of Rajasthan, as per quality, amid thin local and outstation mills’ trade activity.

However, demand and sale counters in processed Moong reported slow participation and traded weak by Rs 100 at Rs 8,200-8,300/100Kg.

New summer Moong crop is expected to arrive from April to end-May at Madhya Pradesh and Gujarat.

In Chennai, Brazil origin Moong priced in the range of Rs 8,800-9,000/100Kg, Tanzania origin unpolished at Rs 7,000, Kenya origin polished at Rs 8,300-8,500 and Australia Moong at Rs 11500-12000.

Farmers were still holding kharif crop Moong in Madhya Pradesh and Rajasthan.

Arrivals and supplies stocked in godowns, meanwhile, are enough to offset current requirements.

The Central Government notifies annual quota for the fiscal year 2021-22 for import of 1.5 Lakh MT of Moong.

(By Commodities control Bureau; +91 9820130172)