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Lower Crop Output Gives Floor To Urad Prices; Steady Start In Chennai/Kolkata, Higher In Mumbai

24 Jan 2020 1:50 pm
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MUMBAI (Commodities control) – Urad price seems to be gathering support from reports of supply shortage and lower produce. However, limited demand is keeping a lid on price gains in all the major markets on Friday.

In Chennai, Urad FAQ and SQ open flat at the opening session to trade at Rs 7050-7100 and Rs 7550-7600/100 Kgs, respectively. While FAQ urad in Kolkata started the day flat at Rs 7200-7300/100Kgs. FAQ New and old urad were at Rs 6800 and Rs 6650/100Kgs, respectively, at the beginning of the day at Mumbai pulses market.

However, the opening prices in Friday’s session are nearly Rs50-100 lower from the previous session.

According to the market participants, near-to-zero demand is the reason behind dullness in price. Traders expect the lag to continue for next 4-5 days, during which prices are likely to be range-bound.

However, on the supply side it is reported that supplies from the Urad belt, Madhya Pradesh, to South India has dipped 80-90%. Unseasonal rains in M.P, U.P and Maharashtra has destroyed the urad crop in the producing belts, which will result in acute shortage of domestic supplies.

Meanwhile, Government plans to extend urad dal imports of up to 4 Lk tonnes, in view of likely domestic shortages.

As per the investigation by Commoditiescontrol.com, Government will be required to make additional import allocations, post March, to keep up with the demand.

According to market experts, the annual consumption of Urad is about 24-25 Lakh tons. Some of this demand is taken care of through kharif produce of 14-16 Lk tons and 4 lk tons of Rabi produce. Rest of the quantity is imported.

However, this time around the output is likely to be halved. Despite adding the rabi produce, imports and the old stocks to the kharif produce, total supply turns out to be under 20 Lakh tons.

This will result in demand exceeding supplies in near to medium term.

Meanwhile, Urad market eyes Jaipur High Court’s hearing scheduled for 27th January 2020.

(Commodities Control Bureau)

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