Weekly Review: Lackluster Buying Pounds Pulses, Improvement Expected Ahead

MUMBAI (Commodities control) –Muted mood of the pulses’ processors and millers after governments intervention to check prices and higher production projections in third advance estimates released last month, pounded buying sentiments in pan-India pulses markets last week.

However, the market has already digested the key factors that could impact more on prices of raw and processed pulses and supply-demand mismatch in pulses is still seen, which is a major factor supporting optimistic price trend.

Besides, monsoon’s progress and landing costs of imported pulses will also be measured in coming week to dictate the market trend in pulses as containers’ charges are reportedly higher due to its shortage in covid-19 pandemic season.

Prices of major pulses, like Tur, Urad, Chana, Kabuli Chickpea, Masoor, Summer crop new Moong and White Pea declined for the week ended 5th June amid dull buying by millers purchase after government intervention.

Past Week’s Highlights

# Maharashtra Government asks Stakeholders to Declare Their Pulses Stocks on Portal.
# Core Agriculture Region May Receive 6 percent More Rains, Predicts IMD.
# Monsoon Hits Kerala Coast, 2 Days delayed from Normal Onset.
# IPGA urges Government to assuage fear of traders about stock monitoring exercise.
# IPGA Suggests Govt to Set MRP for Pulses to Curb Unnatural Price Hike.
# Agriculture Minister Launches Free Seed Minikit Distribution Programme For Pulses, Oilseeds.
# RBI Decides to Keep Repot Rate Unchanged.
# RBI Cuts India’s GDP growth Projection to 9.5 % for FY2021-22.

Burma Lemon Tur:

Tur Lemon variety of Burma-origin traded weak by Rs 150-200 at Rs 6,000/100Kg, in Mumbai due to thin participation by the millers, following weak cues from domestic markets and upcoming overseas supplies of Tur at lower landing cost in near future after government allowed free import of Tur, Urad and Moong.

In forward trade, Burma origin Lemon variety Tur (new) was quoted at Rs 6,200/100Kg against June-July shipment.

Two break bulk vessel expected to start loading Tur-Urad at Yangon port between 15th to 20th June for India. Approximately total 50,000-70,000 MT of Tur-Urad expected to be shipped for India in June month.

Similarly, domestic variety of Tur also traded lower by Rs 250 to Rs 6,600-6,625/100Kg in bilty trade at benchmark market Akola due to dull participation by the millers as demand and sale counters in Tur dal reported sluggish.

Sentiments were weak as traders-millers & importers have to submit weekly stock positions on a portal devised by the central government.

Trade volume was low despite ease in lockdown restrictions as closure of restaurants, small eatery joints, big retail chains has affected overall consumption demand for pulses.

Consumption of Tur dal fell during May month due to ongoing mango season.

According to trade sources, the acreage of Tur may rise as good rainfall is expected during ongoing monsoon which is in progress after hitting Kerala coast on June 3, according to the IMD.

Prices of Tur ruled above its MSP (Minimum Support Price) of Rs 6,000/100Kg.

As per market sources, Tur prices have already discounted by 10-12% in ready trade from higher levels after govt allowed free imports.

Buyers have purchased Tur at lower landing cost from international markets. Meanwhile, prices of Tur in domestic markets were trading little higher above MSP. Moreover, NAFED doesn’t have a lot of Tur stock. CACP will recommend soon the new MSP for all mandated Kharif crops for marketing season 2021-22.

Burma Urad:

Prices of Burma Urad FAQ variety slipped Rs 400 at Rs 6,550/100Kg in Mumbai amid dull buying by mills and also overseas supplies at lower landing cost in Chennai port after government allowed free import. Meanwhile, parity in import was seen.

Similarly, Burma Urad SQ-FAQ varieties in Chennai were also quoted Rs 250 down at Rs 7,150/100Kg and Rs 6,750, respectively.

The direct container vessels carrying urad from Yangon have already reached Chennai port. Approximately total 50,000-70,000 MT of Urad-Tur expected to be shipped for India in June month.

As per Burma based local trader, India buyers were active to purchase large quantity at lower rates. However, sellers were least interested to liquidate their stock at lower prices. Containers charges are higher due to shortage. Freight charges in container around $130-$150.

Arrivals of summer crop Urad have already begun at Madhya Pradesh and Gujarat. Summer crop new Urad traded in the range of Rs 6,000-6,500/100Kg at Jabalpur and Rs 6,800-7,000 at Veraval market.

Chana Kantewala (Indore):

Chana prices remained weak by Rs 100 at Rs 5,150-5,200/100Kg in Indore due to thin mills purchase as demand and sale counter in Chana dal-besan remained dull.

Besides, sentiments were weak as traders-millers & importers have been asked to declare their weekly stock positions on a portal devised by the central government.

Cautious trade was witnessed due to fear that government may reduce soon Import tariff on Chana-Kabuli Chickpea.

Madhya Pradesh Govt is yet to restart Procurement of Chana on MSP.

Sudan and Russia-origin Kabuli Chickpea prices extended fall by Rs 100-200 each at Rs 4,750-4,950/100Kg and Rs 5,000, respectively.

42-44 & 44-46 count Kabuli Chana was also widened losses Rs 100 each at Rs 9,350/100Kg and Rs 9,200, respectively.

Imported Masoor (Mumbai):

Canada crimson variety Masoor along with Australia Masoor in Mumbai fell by Rs 75-125 each at Rs 6,250-6,375/100Kg and Rs 6,450-6,475, respectively on fresh overseas supplies at Kakinada-Mundra port and also millers refrained from purchasing due to fear that government may reduce soon or eliminate Import tariff on Masoor.

Similarly, Canada crimson variety Masoor at Hajira-Mundra port declined by Rs 125 at Rs 6,250/100kg and Rs 6,200, respectively, while at Kandla it was priced weak by Rs 125 at Rs 6,150/100Kg.

Vessel M V FLAG GANGOS carrying about 31780 tonnes of Canada Masoor arrived at Kakinada Port on 28th May, 2021, according to a shipping agency.

Vessel M V FERMITA carrying approximately 32000 tonnes of Canada Masoor is expected to arrive at Mundra port on 6th June, 2021, according to a shipping agency.

In Canada, Masoor markets were easier during the past week against slowing sales and worries that India has yet to announce any changes to import duties for Masoor.

Moong (Jaipur):

Moong prices priced flat to Rs 6,600-7,000/100Kg at Jaipur market of Rajasthan, as per quality, amid thin mills buying support and ongoing summer crop new Moong arrivals in producing centres.

Demand and sale counters in processed Moong reported dull participation and traded lower by Rs 100-200 at Rs 8,000/100Kg.

Summer crop Moong plunges sharply this week due to delayed in procurement on MSP by government.

Summer crop new Moong traded lower by Rs 750-800 to Rs 5,100-5,800/100kg as per quality compare to last week end of Rs 6,200-6,600.

Robust summer crop sowing was reported in Madhya Pradesh and Gujarat on the back of increased water availability following good monsoon last year. MSP was also higher at Rs 7,196/100Kg.

Summer crop new Moong may see some losses due to rain in producing states of Uttar Pradesh and Bihar.

Moong prices are expected to remain under pressure after Government lifted restrictions from its imports.

Farmers are still holding kharif crop Moong in Madhya Pradesh and Rajasthan. Arrivals and stocks are reportedly sufficient to meet current requirements.

White Pea (Kanpur):

White Pea prices dropped by Rs 25-50/100Kg to trade in a range of Rs 5,125/100Kg (dal quality) and Rs 5,200 (40% filter quality) at Kanpur market, due to thin trade activity from local and outstation markets.

As per Kanpur based trader, prices of White Pea are likely to get support as carryover stock is negligible. Moreover, imported White pea stock is also negligible after India banned the import of the yellow peas. Customs department has not released the imported pulses yet, as the release will contradict government’s existing policy.

Overviewing all factos, trade in pulses is expected to improve in coming weeks with increased demand from retail counters after easing restrictions in Covid-19 curfews/lockdown across the country.

(By Commodities control Bureau; +91 9820130172)