Mumbai, 22 May (Commoditiescontrol): A general consensus is forming among pulse millers and trade analysts regarding the outlook for the pulses trade and prices that are likely to move into the action post general election results on June 4. They predict a significant price increase of 20 to 30%, and in support of the assumption they point at several factors including lower sowing rates, a dry supply pipeline, and strong consumer demand.
Over the past four to five months, pulse prices have already risen by 10-15%. Experts note that millers are eagerly awaiting the end of the election process to adjust prices accordingly.
Strict directives have been issued to millers, prohibiting any price hikes until the Lok Sabha election results are declared. Millers explain that a decline in domestic production has forced them to buy whole pulses from farmers at very high prices. However, they are currently unable to raise the prices of pulses to offset these costs, resulting in substantial financial losses.
Andhra Pradesh, a major producer and processor of pulses in India, plays a crucial role in supplying tur dal to various states. Despite being the largest producer of tur globally, accounting for over a quarter of the world’s production, India frequently imports large quantities to meet its vast domestic consumption needs.
The Union Agriculture Ministry has predicted a significant decline in pulse crop production for the 2023-24 season, which has contributed to the rising market prices. To keep their operations running, pulse millers have been purchasing pulses at extremely high prices. For instance, dal millers have stocked tur in the domestic market at rates ranging from Rs 11,000 to 13,000 per quintal, roughly 70% above its minimum support (MSP) price of Rs 7,000 per quintal.
In the retail market, the price of tur dal has surged from Rs 130 per kg six months ago to as high as Rs 190-200 per kg. This increase reflects the heightened costs faced by millers and the overall tight supply situation. The anticipated post-election price hike is expected to further strain consumers, who are already grappling with higher food costs.
As millers await the conclusion of the election, the pulse market remains in a state of flux. The expected price adjustments post-election are likely to have widespread implications for both consumers and the agricultural sector, highlighting the delicate balance between production costs, market stability, and consumer affordability.
By Commoditiescontrol Bureau: 09820130172)
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