Weekly: Tur-Urad Plunge Most This Week; Masoor-Moong Gains

MUMBAI (Commodities control) – Prices of Tur, Urad and Chana remained weak for the week ended 27th March, 2021 amid thin buying activity. Meanwhile Masoor, Moong and White Pea moved higher on mills’ demand. On the other hand, Kabuli Chana traded flat on limited trade.

Weekly Highlights

# Centre has allowed the traders to participate in the import of four Lakh tonnes of quota Urad for the fiscal Year 2021-22.
# MP Govt Extends Due Date of Repayment of Short Term Farm Loans taken by primary agri branch cooperative societies in 2020-21 (Jul-Jun) kharif season to Apr 30 from Mar 28.
# India’s Second Wave of Covid Likely to Last Over 3 Months - CEA SBI.

Burma Lemon Tur:

Tur Lemon variety of Burma-origin extended fall by Rs 100 to Rs 6,250/100Kg in Mumbai, due to slow participation by the millers as demand in tur dals were slack.

On other hand, domestic variety of Tur was unchanged at Rs 6,950-6,975/100Kg in bilty trade at benchmark market of Akola despite decreasing domestic arrivals.

Meanwhile, millers were facing disparity. However, monthly dal counter expected in 1st week of April.

Moreover, trade activity in domestic market also reported thin due to financial year end closing and also due to liquidity crunch.

Also, Covid cases has been increasing rapidly in Maharashtra. To which, government has announced lockdown in the region to curb further spread.

As on March 22, 2021, NAFED has successfully procured 10929.36 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 widened losses by Rs 150 at Rs 7,000/100Kg in Mumbai, amid dull millers' trade as processed Urad reported sluggish offtake and fresh overseas supplies in Chennai.

Similarly, Burma Urad FAQ-SQ varieties in Chennai dropped by Rs 200-250 at Rs 7,200/100Kg and Rs 7,675, respectively.

As per market sources, upcoming supply from Burma, ongoing arrivals of Urad at Krishna district, limited offtake in processed Urad during summer period and upcoming supply of summer crop from April-May in Madhya Pradesh and Gujarat are likely to keep prices under check.

Moreover, 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.

Chana Kantewala (Indore):

Chana prices eased by Rs 25 at Rs 4,975-5,000/100Kg in Indore amid limited buying from mills and ongoing arrivals.

However, the stockists are actively buying at lower levels.

Nafed has announced purchase of Chana in Madhya Pradesh from 27th March onwards. It will impact Mandi arrivals as current spot prices are well below MSP.

Currently Chana MSP is 5100 Rs/Qtl while prevailing spot rates in MP are below the MSP, which will direct farmers to sell goods to NAFED at higher prices instead of selling in Mandis at lower prices.

It will potentially impact the supply anticipated to come in mandis from fresh harvest in MP, tightening the spot availability.

Pace of procurement by government agency at MSP likely to improve in coming days will support the prices.

Demand for Chana dal was reported steady today, with purchases covering the festive demand. Expectation of monthly counter from 1st week of April will support prices. Moreover, Nafed has stopped selling old procured stock.

As on March 22, 2021, NAFED has successfully procured 58,819.32 MT of Chana at Minimum Support Price of Rs 5,100 in Andhra Pradesh, Telangana, Maharashtra, Karnataka and Gujarat.

Similarly, Tanzania-origin Chana in Mumbai was down marginally at Rs 4,625/100Kg amid slack mill buying as millers-stockiest prefers to purchase new domestic Chana compare to old imported Chana and also ongoing new domestic arrivals.

On the other hand, Sudan and Russia-origin Kabuli Chickpea prices traded flat at Rs 4,600-4,950/100Kg and Rs 4,950-5,050, respectively.

Dollar variety Chana also traded almost unchanged at Rs 7,800-8,400/100Kg in Indore. 42-44 & 44-46 count Kabuli Chana also remained steady each at Rs 8,950/100Kg and Rs 8,800, respectively.

Imported Masoor (Mumbai):

Canada crimson variety Masoor along with Australia Masoor in Mumbai continued to trade higher by Rs 75 each at Rs 5,700-5,800/100Kg and Rs 5,875, 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 75 at Rs 5,700/100kg and Rs 5,650, respectively, while at Kandla it was priced higher by Rs 75 at Rs 5,600/100Kg.

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.

Nafed Masoor Purchase Target Under PSS at MSP of Rs 5,100/100Kg During Rabi-21 Season. Bihar:32,175 MT, Uttar Pradesh:1,13,200 MT and Madhya Pradesh:1,37,000 MT. However, Masoor prices were already traded above MSP at major markets.

White Pea (Kanpur):

New White Pea prices moved higher by Rs 50 at Rs 4,950/100Kg (dal quality) and Rs 5,150 (40% filter quality) at Kanpur market, due to lower level buying against ongoing arrivals.

As per Kanpur based trader, prices of White Pea is likely to get further 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 gained by Rs 300 at Rs 6,500-7,200/100Kg at Jaipur market of Rajasthan, as per quality, amid local and outstation mills’ buying activity at lower rates.

Similarly, demand and sale counters in processed Moong reported good participation and traded higher at Rs 8,300-8,400/100Kg.

New summer Moong crop is expected to arrive in coming days at Madhya Pradesh.

Summer crop will also arrive in Gujarat from May 1st week. Arrivals of new crop will be witnessed in Andhra Pradesh and Odisha in near future.

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)