Week Ahead: Urad, Chana-Kabuli Chickpea plunge this week, Tur firm

MUMBAI, 2 Oct (Commodities control) – Urad along Chana-Kabuli Chickpea slipped for the week ended 2nd Oct 2021 amid dull demand from processors. While, Tur prices ruled firm on fresh mills trade activity at lower rates. On other hand, Masoor, Moong and White Pea traded almost flat on limited activities.

According to the preliminary estimate, so far, kharif crops over about 17 lakh hectares have been affected in Maharashtra due to the September rains. It includes soya bean, moong, urad and cotton, which has reported ball rotting due to excess moisture.Total area sown up till now this Kharif season is estimated to be at 145 lakh hectares.

Weak rainfall in the critical crop growing period of the first half of July and further excessive rainfall in September are likely to impact yield and quality of crop negatively.

Meanwhile, demand and sales in processed pulses witnessed thin activity due to Pitru Paksha from 20th Sep-6th Oct. However, some buying is expected at lower rates ahead of festive period during 1st & 2nd week of October. Moreover, the growing demand for midday meals to be restarted in schools of Karnataka, the government is planning to reintroduce it after the Dasara holidays.

The CCEA cleared the PM POSHAN Scheme for providing one hot cooked meal in Government and Government-aided schools from 2021-22 to 2025-26. 11.80 crore children studying in 11.20 lakh schools covered. The total scheme budget will amount to ₹ 1,30,794.90 crore. The earlier name of the scheme was ‘National Scheme for Mid-Day Meal in Schools’ popularly known as Mid-Day Meal Scheme.

Past Week’s Highlights

# India Final Kharif Pulses Sowing up 2.17 % As On Sep 30 At 142.37 Lakh Ha Vs 139.34 Last Year. Tur: 50.5 Vs 48.47, Urad: 40.05 Vs 39.23, Moong: 35.41 Vs 35.53, Other Pulses: 15.59 Vs 15.3. Click here
# Country Received Normal Rainfall During June-Sept this Year, Monsoon Withdrawal Likely from Oct 6: IMD. Click here
# Over 11,000 stockholders declare 3097694.42 MT stock of pulses till Sept 20 on Centre’s portal. Click here
# The output of Tur crop in Karnataka is projected to drop 2.6% to 1,206,000 tn in the 2021-22 (Jul-Jun) season. Click here
# Moong-Urad & Tur procurement sanctioned set for kharif 2021-2022 season by various state governments are given below in metric tonnes. Click here

Burma Lemon Tur

In domestic market, Tur moved higher by Rs 25-50 during the week to close at Rs 6,725-6,775/100Kg in bilty trade at benchmark market Akola.

In imported variety, Tur Lemon variety of Burma-origin (new) traded firm by Rs 25 for the week at Rs 6,350/100Kg in Mumbai. Mills were seen active in market at lower levels purchasing to meet their immediate requirement for crushing.

In other overseas origins’ Tanzania origin Arusha variety Tur along with Sudan Tur also priced higher at Rs 5,700-5,750/100Kg and Rs 6,550, respectively. Malawi Tur at Rs 5,100-5,300/100Kg. While, Mozambique origin gajri variety and Matwara Tur ruled unchanged each at Rs 5,650/100Kg, respectively.

In overseas markets Tur Lemon and Linkley varieties traded weak at $840 /MT CNF India basis in Yangon market .In Tanzania market, Arusha variety Tur quoted at $720 per ton and Matwara at $700, Malawi Red at $650 and Mozambique gajri Tur at $710 on CNF Nhava Sheva for Oct shipment.

Vessel M V PORTHOS carrying 31,500 MT of bagged cargo Mozambique Tur is expected to arrive at Mumbai port on 14th October, 2021.

Vessel M V ETERNITY C carrying 32,188.454 MT (6,684 MT in bulk and 25,504.454 MT in bag) Mozambique Tur is expected to arrive at Mumbai port on 4th October, 2021.

Tur prices are likely to remain range bound as reports of crop damage due to excessive rains in Marathwada region of Maharashtra will keep prices supported whereas consistent supply of African tur will restrict upside.

Burma Urad

Prices of Burma Urad FAQ variety fell by Rs 25 at Rs 7,075/100Kg in Mumbai on thin mills buying as there is slow off-take in Urad dal on the other hand there is ample supply from arrivals of new Kharif crop and imports from overseas.

Burma Urad FAQ-SQ varieties in Chennai dropped each by Rs 50-100 to Rs 6,900/100Kg and Rs 7,925, respectively.

Nafed is liquidating its old stock in Madhya Pradesh-Uttar Pradesh and Rajasthan. Nafed sold Kharif-2018 procured Urad at Rs 5,115/100Kg at Rajasthan.

However, Urad is expected to get support at lower level as new Kharif crop is said to be damaged 50-60% in terms of quality and yield because of recent rains and pest attack. Fresh arrival from new kharif crop is said to be dagi and contains moisture 15-20%.

Millers-traders were interested in purchasing good quality new crop. Good quality arrivals may increase if weather gets clear next week.

Maharashtra origin new Urad traded lower by Rs 200 at Rs 7,400/100Kg for Guntur delivery.

In the overseas markets, Urad FAQ-SQ varieties are offered at $950 and $1070 per ton on a CNF basis in Burma. As per local trader, Urad stock was approximately around 1.5 Lakh tonnes. Already, direct container and breakbulk vessels carrying urad regularly depart from Yangon for Chennai.

The government extended the free import policy for Tur-Urad till 31 January 2022.

The government laid down the procedure and modalities for import of 2.5 lakh tonnes of urad from Myanmar for FY 2021-22.

Urad is likely to trade range bound this week as crop damage will limit the losses whereas fresh supply of Kharif crop and imported Urad will cap the prices.

Chana Kantewala Indore

Chana prices widened losses for fourth straight week by Rs 50 at Rs 5,300/100Kg for the week at Indore amid thin mills trade as Chana dal and besan demand scenario remains quiet.

Meanwhile, Nafed is actively liquidating its stocks of Chana at lower rates at various centres.

Nafed sold procured Chana Rabi-2020 at Rs 5,001-5,012/100Kg in Madhya Pradesh on 30th Sep, 2021. In Rajasthan, Rabi-2020 sold at Rs 5,107.

However, FCI rejected all bids of Rabi 2021 and 2020 procured Chana put for auction in Maharashtra, as per market sources.

For international origins, Tanzania Chana, both old-new traded lower by Rs 75-100 at Rs 4,850/100Kg and Rs 5,050, respectively.

Sudan-Russia origin Kabuli Chickpea slipped each by Rs 50-100 to Rs 5,450-5,600/100Kg and Rs 4,850, respectively on slack mills buying and fresh supplies of new crop from Sudan. Import of Russian origin was not viable due to high import duty of 40%.

Indore Kabuli Chana 42-44 & 44-46 counted lost Rs 50-150 at Rs 9,400/100Kg and Rs 9,250, respectively. On other hand, dollar variety Chana priced unchanged at Rs 8,500-9,200.

Chana prices may remain under pressure due to liquidation of old stock by stockists and big farmers as they intend to shift their position to soybeans which may give better return in near term. But downside from here is limited as we may see pick-up in demand after pitar paksha which ends on 6th October. Seed demand for Rabi sowing will also support Chana prices.

Imported Masoor (Mumbai)

Canada crimson variety Masoor along with Australia Masoor at Mumbai traded almost steady at Rs 7,450-7,475/100Kg and Rs 7,550-7,575, respectively amid limited mills purchase as offtake in processed Masoor is thin and overseas supplies.

Tracking Mumbai market Canada crimson variety Masoor at Hajira-Mundra port also ruled unchanged at Rs 7,275-7,350/100kg and Rs 7,250-7,300, respectively.

As per market sources, Nafed has purchased approximately 27,000 MT imported Masoor from various state in the range of Rs 7,600-7,690/100Kg.

Approximately imported Masoor balanced stock was reported 113108.194 MT as on 30th Sep, 2021.

Moreover, higher prices in international market on apprehension of lower crop output in Canada and USA, has supported Masoor prices.

Canada's harvest was pegged at 1.802 million metric tons (MT) in the latest forecast from Statistics Canada, down from 2.868 million last year. US Masoor production is expected to slide from 336,000 to 231,000 MT.

International Masoor markets witnessed mixed tone as exporters continue to face competition from resellers. Relatively large price differences in reported bid and ask prices in India, which remains a focus of markets since base import duties were eliminated on all origins except the United States. Importers in India currently suggest that while Canada will be the primary source of lentils for arrival through November, Australia will likely dominate markets afterward.

Higher MSP for upcoming Rabi Masoor crop in India will boost plantation. Beneficial rains and higher prices received by farmers for plant year crops will lead to higher sowing in Masoor for the upcoming Rabi crop. In the near term this will boost Seed demand expected from October.

Prices are likely to remain steady to firm this week as supply from import may slow down as resellers at lower level are making direct import less attractive. At the same time demand for seed for Rabi sowing will help prices to remain firm.

Moong (Jaipur)

New Moong prices traded unchanged at Rs 6,400-7,200/100Kg at Jaipur market of Rajasthan, as per quality, on limited mill buying activity as demand in processed Moong reported thin and ongoing arrivals.

In major producing centres, arrivals of dagi quality was reported and moisture containt was said to be higher. No arrivals pressure of new Moong witnessed in major producing centres.

Centre sanctioned procurement of 6,432 MT Moong in Telangana, 3,367 MT Moong in Tamil Nadu, 30,000 MT in Karnataka, 15,835 MT in Haryana and 1,315 MT in Andhra Pradesh under price support scheme for Kharif 2021-2022.

The Haryana government directed all deputy commissioners to send reports regarding the recent damage to cotton and moong crops due to heavy rains and waterlogging by October 15.

White Pea (Kanpur)

White Pea prices traded flat for fourth straight week at Rs 5,750/100Kg (40% dal quality) and Rs 6,150 (60% filter quality) at Kanpur market on limited buying support from local and outstation markets despite shortage.

Similarly, Vatana besan and dal remained stable each at Rs 4,800/50Kg and Rs 6,900, respectively.

Canada's 2021-22 dry pea production may fall to 2.5 million tonnes (Mt), down 45 percent from 2020-21 due to lower yield.

Activity in white pea market is likely to be dull as there is limited stock available in market. There is no fresh supply in white pea market due to import restriction and demand is restricted due to lower chana prices.

(By Commodities control Bureau; +91 9820130172)