Weekly: Tur Prices Decline Amid Regulatory Shifts and Crop Expectations

Mumbai, 17 July (Commoditiescontrol): Tur prices from all sources saw a marginal drop across the globe for the week ending on July 15th. A significant decrease was reported in the price of Myanmar lemon Tur in the Chennai and Mumbai markets, while the Delhi market recorded a smaller decline. This drop was mainly caused by a dip in CNF India prices in Yangon and the Indian reseller market.

Indian domestic markets also reported less severe losses than the Lemon Tur. The minimal fall is linked to limited arrivals and the division of the bulk stock into smaller lots held by various market participants not interested in selling at current prices.

African-origin Tur followed a similar downward trend as the Lemon Tur. Prices remained subdued with limited stock available and the expectation of new crop arrivals next month.



In CNF terms, Lemon Tur experienced a $30/Mt drop due to new exchange regulations in Myanmar. Despite this drop, there's a substantial import disparity in Indian markets of around Rs 550/quintal.



A price dip was recorded in the desi Tur dal market, driven by slow offtake and a decline in Tur prices. The Tur dal drop persisted despite the crushing disparity or negative crush margin encountered by millers



Dal derived from imported Tur from Burma and African-origin Tur also saw falling prices in the domestic markets.. Burma Tur trades at a 500-600 discount to desi Tur, while its Fatka dal trades at a discount to desi fatka dal by Rs 2000/quintal. This trend suggests that Burma Tur prices must fall considerably to account for import and crushing disparity, or the price of Tur dal (made from Lemon Tur) must rise enough to adjust this disparity.



Due to the reported rains in the Major Tur belt of Maharashtra and Karnataka, there's an expectation of substantial improvements in sowing numbers in the coming weeks. This expectation and the crushing disparity are predicted to result in a decline in raw Tur prices. Furthermore, the high import disparity of Burma Lemon Tur, favourable exchange regulation for conversion of export sale proceeds, and the upcoming supply of African Tur from next month should amplify selling pressure, potentially causing further price drops.

(By CommoditiesControl Bureau; +91-9820130172)