Week Ahead: Pulses market may remain under pressure as govt extends import window

MUMBAI, 27 December (Commoditiescontrol) Pulses market remained under pressure last week after the government extended free import policy for major pulses till march 2022. This pressure in pulses marekt is likely to continue further this week on the expectations of cheaper supplies from overseas and demand side is weak due to downtrend in the prices of vegetables. Limited buying my be see as traders are anticipating more fall in the prices of major pulses.

Prices of major pulses, like Tur, Urad, Chana, Kabuli Chickpea and White Pea dropped last week ended 25th Dec 2021 amid slack mills buying due to liquidity crunch and lackluster offtake in processed pulses and Nafed selling old procured stock. While, Masoor prices ruled firm on fresh mills purchase at lower rates. On other hand, Moong prices ruled almost unchanged due to thin activity.

Past Week’s highlights

# India Rabi Pulse Sowing down by 2.36 % as on Dec 24 to 144.47 lakh Ha vs 147.96 last year at the same period.
# India's Total Acreage of Rabi Crops up 1.20% y/y at 600.65 lakh hectare so far.
# Statewise Rabi Pulses Sowing Till Dec 22, 2021.
# Govt extends free import policy for tur and urad till 31 March 2022.
# Nafed goal to procure 8 lakh tonnes of tur at MSP across country.

Burma Lemon Tur

Tur Lemon variety of Burma-origin extended fall by Rs 200-250 at Rs 5,750-5,800/100Kg in Mumbai due to thin participation from millers as sluggish offtake in Tur dal, supply pressure from local growers at few markets.

Similarly imported variety of other origins, Tanzania origin Arusha and Matwara varieties Tur priced weak each at Rs 5,100-5,150/100Kg and Rs 5,000-5,100, respectively. Sudan Tur also priced down at Rs 6,000-6,050. Mozambique origin gajri variety remained weak at Rs 5,150-5,250. Malawi Tur also fell at Rs 4,600-4,700.

Moreover, in forward business, sellers were active to sell new Burma Tur crop 2022 at lower rates after govt extends free import policy has dampened sentiments.

Due to cash crunch, stockiest holding Tur were active to sell at lower rates in ready business as arrivals pressure of new domestic Tur from producing centers expect in January month.

In domestic market, Tur dropped by Rs 250 during the week to close at Rs 6,100-6,150/100Kg in bilty trade at benchmark market Akola.

Already, stockiest were inactive since long time after govt intervened. Millers-traders active as per requirement.

Tur prices movement will depend as per arrivals pressure from next month in producing centers and also government procurement.

In the overseas markets, Tur Lemon-Linkhey varieties priced weak at $700 per ton, respectively on a CNF basis in Burma. Meanwhile, buyers from India were sidelined government extended free import policy for tur and urad till March 31, 2022. The Bill of Lading date should be on or before 31.03.2022. The Consignment should be obtained Out of Charge from Customs on or before 30.06.2022.

Arrivals of new Tur began at Burma local market. New Tur crop is around 2-2.5 Lakh tonnes. Carryover stock approximately 30,000-40,000 ton.

Burma Urad

Prices of Burma Urad FAQ variety widened losses by Rs 300 at Rs 6,450-6,500/100Kg in Mumbai amid buyers inactive and regular supplies from overseas.

Buying was less due to liquidity crunch and slow offtake in processed Urad.

Similarly, Burma Urad FAQ-SQ varieties in Chennai extended fall for fourth straight week each by Rs 350-450 at Rs 6,350/100Kg and Rs 6,850, respectively.

Moreover, The government of India extended free import policy for tur and urad till March 31, 2022. The Bill of Lading date should be on or before 31.03.2022. The Consignment should be obtained Out of Charge from Customs on or before 30.06.2022.

Meanwhile, arrivals of Urad witnessed at Uttar Pradesh and Madhya Pradesh. Arrivals of new Urad likely to began in districts of at Andhra Pradesh and also from Tamil Nadu in January.

In the overseas markets, Urad FAQ-SQ varieties priced lower each at $775 per ton and $875 per ton on a CNF basis in Burma. Meanwhile, buyers from India were sidelined. New Urad crop is around 4 lakh tonnes. Carryover stock approximately 1 lakh ton.

Chana Kantewala Indore

Chana prices continued to trade weak by Rs 50-75 at Rs 4,950/100Kg for the week at Indore due to thin buying from mills.

Meanwhile, demand in Chana dal and besan reported below expectation despite ongoing wedding season.

India 2021-22 Rabi Chana acreage was down 0.02 %, as on Dec 24, at 102.49 Lakh Ha Vs 102.51 Last Year.

Similarly for international origins, Tanzania Chana, both old-new extended fall each by Rs 100 at Rs 4,525-4,600/100Kg, respectively.

Also, Russia and Sudan Kabuli Chickpea priced lower each by Rs 100 at Rs 4,600-4,700/100Kg and Rs 5,000-5,100 on thin buying activities and supplies of new crop from Sudan. However, import of Russian origin was not viable due to high import duty of 40%.

Similarly, Indore Kabuli Chana 42-44 & 44-46 count dropped each by Rs 400-450 at Rs 8,600/100Kg and Rs 8,500, respectively. Dollar variety Chana also offered lower by Rs 300 in the range as per quality at Rs 8,000-8,500.

Nafed-FCI is actively liquidating its stocks of Chana at various centres at lower rates and Chana sowing progress at selected state will keep prices under pressure.

However, Nafed procured old Chana quality was average.

Stockists and farmers holding Chana stock were active to liquidate procured stock at prevailing rates as quality was affected and also due to cash crunch.

Imported Masoor (Mumbai)

Canada crimson variety Masoor along with Australia Masoor at Mumbai moved higher by Rs 50 each at Rs 7,175-7,200/100Kg and Rs 6,900-7,300, due to mills buying support at lower rates on immediate requirement for crushing despite Nafed active for sale of imported and domestic Masoor at various centers, thin offtake in processed Masoor.

Tracking Mumbai market Canada crimson variety Masoor at Mundra-Hajira port also ruled firm by Rs 25 each at Rs 6,925-6,950/100kg and Rs 6,975, respectively.

Meanwhile, stock of imported Masoor were higher compare to domestic Masoor stock. Prices of imported Masoor were higher at international market and disparity in import. Importers were less interested to sell stock at lower rates.

Canada crimson variety Masoor priced at $1010-$1020 per ton on cnf basis. Australia origin Masoor at $930-$940 per ton on cnf basis. Russia origin Masoor at $850 per ton on cnf basis.

Govt approves extension of lentil import from Russia till 30 June 2022.

Moong (Jaipur)

New Moong prices traded unchanged at Rs 6,000-6,800/100Kg at Jaipur market of Rajasthan, as per quality, due to thin millers buying activity as offtake in processed Moong was reported limited and also overseas supplies.

On other hand, Rajasthan origin new Moong traded weak by Rs 50 at Rs 4,500-6,650/100Kg, as per quality, at Naya bazaar pulses market of Delhi.

Uganda origin Moong offered at $870 per ton on CFR Nhava Sheva for January-15th February shipment.

White Pea (Kanpur)

White Pea prices declined by Rs 125 each at Rs 5,575/100Kg (40% dal quality) and Rs 5,875 (60% filter quality) at Kanpur market on thin buying support from local and outstation markets despite shortage.

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

Canada's 2021-22 dry peas production is estimated to fall by 51 percent from 4.59 million tonnes (Mt) in 2020-21 to 2.26 million tonnes due to lower yields and harvested area, according to AAFC’s latest outlook report, published on December 17.

Yields were 44% lower than the previous year due to drought conditions. Yellow and green pea types are expected to account for about 1.9 Mt and 0.3 Mt, respectively, with the remainder spread across other varieties.

(By Commodities control Bureau; +91 9820130172)