Green Matar Sees Extend Decline as Weak Sentiment Persist

Mumbai, 06 May 2024 (Commoditiescontrol): Major markets witnessed continued subdued sentiment in Matar prices on Monday, led by sluggish demand and increased stock levels. The Government of India's extension of pea imports till October 31 and the removal of Chana import duties have further dampened market outlook.

Today, white Matar prices in specific markets experienced a modest decline of Rs 25-75 per quintal, while green Matar prices fell sharply, falling between Rs 100-200 per quintal. Inactivity among buyers, attributed to substantial inventories, has contributed to the price downturn, compounded by weak demand in major consumption hubs.

Low arrivals failed to counterbalance the downward pressure on prices. Meanwhile, yellow pea (CIF) prices in Canada for Mumbai delivery were noted between $505 and $515 per metric ton, while stable rates in Russia at $485 to $495 per metric ton for prompt delivery, both marking a $5 decrease compared to the prior session.

Sentiment in matar prices has turned negative due to the government's decision to extend duty-free imports of chana until the end of October and remove import duties on Chana. However, the supply of chana and peas from international sources is likely to remain limited until September when new crops start arriving internationally. With the start of the monsoon, domestic chana consumption should increase, followed by a rise in demand for domestic festivals starting from the end of August. This expected increase in seasonal demand could put upward pressure on prices. These factors suggest the potential for matar prices to rise in the near term, despite initial negative sentiments.

(By Commoditiescontrol Bureau; +91-9820130172)