Weekly: Raw Pulses Widen Losses On Poor Demand In Processed Pulses

MUMBAI (Commoditiescontrol) – All raw pulses, such as tur, urad, masoor, chana, white pea widened losses for the week ending on Saturday (March 05-10) amid lackluster buying as enquiry in processed pulses remained poor. While, moong prices remained unchanged on thin trade against adequate stock and arrivals of new rabi moong in Andhra Pradesh.

The trade activity across the country is also likely to remain subdued in pulses complex as market participants and traders will be busy in settlement ahead of the end of the financial year 2017-18.



Week Highlights

# The Centre has decided to start the procurement of 3 lakh tonnes of chana under the Price Stabilisation Scheme (PSS) in Maharashtra. The registration of farmers for the process has started from March 1 and 400 of them have been registered so far.
#Rajasthan Fed To Start Chana Procurement (Target:4 LT) From March 21. Procurement Will Start First From Kota & Thereafter In Entire State.
# Maharashtra Minister Of Marketing Subhash Dehmukh In A Release Said That State Government Will Study Price Deficit Scheme Implemented By Madhya Pradesh Before Implementing In State.
# CGC: Canada Matar Export at 85700MT(Jan 2018) VS 65200MT(Dec 2017).Demand From China after India Slap 50% Import Duty. Export of Matar was 137,800MT in Jan 2017.
# In January 2018, Ukrainian Matar (peas) exports plummeted to 16,000 Metric Tonnes (MT) mainly due to import duty of 50% imposed by India. Ukraine had exported a total 5.84 lakh MT of Matar in the first seven months of the 2017/18 season (93% more than previous year), out of which it supplied 2.49 lakh MT of Matar to the Indian market (49% more than for the entire last season).
# Australia Chana Estimate 2018-19 vs 2017-18(In Lac MT).Production: 7.61 VS 10.28, Export: 8.15 VS 12.9, Acreage: 6.34 VS 11.2 (Lac Hec). Fall Cos 60% Import Duty By India.
# Agri Minister Radha Mohan Singh Said Center of Karnataka To Procure Additional 1 lakh MT Tur At MSP. Karnataka already procured 2.57 lakh MT as on 5 March At MSP.
# Registration for Chana & Masur in Bhavantar Bhugtan Yojana (MP) has been extended by 12 days to March 24. Earlier it was between February 12 – March 12.
# Negotiations for Pulse Import Continues Between Burma & India.
# Farmer Unions Launch Satyagraha At March 14 For Better Crop Prices As Prices Below MSP. Begin at Karnataka To Andhra Pradesh, Telangana, Rajasthan and Haryana Till Uttarakhand on March 25.

Burma Lemon Tur:
Tur Lemon variety of Burma origin declined by Rs 75 to Rs 3,900/100kg at Mumbai due to regular domestic arrivals and dull millers' buying. Enquiries in processed tur reported lackluster from wholesalers/retailers. Trade activity in imported tur also reported slow due to low stock. Millers had shifted to domestic tur due to ongoing new domestic arrivals.

Similarly, domestic new tur in bilty trade at Akola also fell by Rs 150 to Rs 4,250-4,275/100Kg.

NAFED Procures (Kharif 2017-18) 436554.02 MT Tur As On 8 March At MSP Prices Of Rs 5450. Maharashtra:86726.20, Andhra Pradesh:17774.06, Karnataka:256753.76 (Procurement Temporarily Suspended), Telangana:75300 (Sanctioned Qty Procured).

In Kanpur, Maharashtra origin (Hinghanghat/Nagpur), tur dal new Phatka Sortex quality priced weak at Rs 5,750, new semi-Sortex at Rs 5,600, new regular variety at Rs 5,450-5,475 respectively. Actual trade activity were reported negligible even at existing lower rates from wholesalers/retailers counter and sellers were active in the market.

Gujarat origin Wasat Phatka variety new offered flat at Rs 6,400-6,600/100Kg. Similarly, Latur origin new Phatka variety also ruled steady at Rs 6,100-6,300/100kg. Jalna origin new phatka variety priced steady at Rs 6,300-6,500/100Kg.

The Maharashtra state government has decided to sell tur dal for Rs 60 per kg at all malls across the state following the poor response received for its sale at ration shops. After stocking it for almost 10 months, it decided to sell it through ration shops at Rs 55 per kg. Some tur dal was also supplied to the women and child welfare department and others at Rs 75-80 per kg. The state government now will ask Reliance Fresh, More, Big Bazaar and other malls across the MMR to sell the tur. It will packed tur dal to the malls, which will be displayed separately. In the open market, the dal is available at Rs 70-80 kg.

According to market talk, Prices of tur likely to eased due to poor demand and sales counter in tur dal is sluggish. Government selling their procured last year stock of raw and processed tur at lower rates was also dampening the sentiments. Arrivals of domestic tur is still below expectations in local market as farmers prefers to sell their stock to Nafed at MSP prices. Private traders and millers were active as per their requirements.

Prices of tur may get some support after domestic arrivals gets dried up and end of mango season, which is expected by May -June.

Tur crop is lower than last year, but government agencies are holding ample stocks keeping market nervous.

Burma Urad:
In Mumbai, new crop of Burma urad continued to trade weak by Rs 50-100 at Rs 3,950/100Kg amid adequate domestic stock in Madhya Pradesh, Rajasthan and Uttar Pradesh, supply of rabi domestic crop in Andhra Pradesh and sluggish trade activities.

Moreover, demand for processed urad from consumption centers also reported dull at existing rates from consumption centers. Millers in southern markets had already stopped crushing urad gota as they were getting it at cheaper rates from Madhya Pradesh (Neemuch, Mandsaur, Ratlam, Guna, Ashoknagar, Jabalpur) and Rajasthan (kota, Kekri, Vijaynagar, Ramganj, Bhiwani and Bara).

Bikaner origin branded Urad dal price offered at Rs 4,700-5,000/100Kg. Tiranga brand of Mumbai at Rs 5,800/100Kg. Parivar brand of Jalgaon at Rs 5,300/100Kg.

Similarly, at Chennai, Urad FAQ traded firm by Rs 100-150 to Rs 4,150-4,200/100Kg due to local millers buying activity at lower rates. On other hand, SQ variety declined by Rs 50-100 at Rs 4,750-4,800 on negligible trade as sellers were active in the market.

Stock of imported urad both FAQ/SQ were around 100 containers (Each container 24 MT) in Chennai, a local trader said. As per market view, India may extend restriction on pulses import till July 2018. In August 2017, India had imposed a 200,000-tonne import quota on pigeon peas and 300,000-tonne quota on urad/moong.

NAFED Procures (Kharif 2017) 270172.50 MT Urad As on 8 March At MSP Prices Of Rs 5400. On other hand, FCI Invites Bids To Sale 4,333 MT Urad on 9 Mar 2018. Bid(s) must remain valid up to 2 working days. Minimum Bid Qty 250 MT.

Chana Kantewala (Indore):
In Indore market, Chana prices traded weak by Rs 50-75 at Rs 3,650-3,675/100Kg due to dull millers' buying, carryover domestic stock, higher sowing and sluggish demand in processed chana.

Similarly, Australia origin Chana at Mumbai and Mundra port remained lower by Rs 100-125 at Rs 3,675-3,700/100Kg respectively on weak cues from futures and ongoing domestic arrivals.

NAFED Procures (Rabi 2017-18) 21877.80 MT Chana As On 8 March At MSP Prices Of Rs 4400. Telangana:6656.75, Karnataka:11745.80, Andhra Pradesh:3475.25.

At National Commodity and Derivatives Exchange (NCDEX), chana for April contract settled weak by 0.1 per cent or Rs.4 at Rs.3,745/100Kgs. Earlier in the day, the contract slid to Rs.3,726 and touched a high of Rs.3,770 per quintal.

Technically, NCDEX Chana April, Cover short position at 3749 or below as the opportunity arises. Expect higher range of 3769-3823 to be tested. Overall weakness will continue below 3647. On sustained rise and close above 3792 can lead to a near term rally.

Australian chana dal priced flat at Rs 4,700/100 Kg against negligible trade from wholesalers/retailers counter. Domestic chana dal of Pistol brand quoted at Rs 4,850, Samrat brand at Rs 5,200 and Angel brand at Rs 5,100. Chana besan offered at Rs 2,890/50Kg. While, Vatana besan traded steady at Rs 1,930/50 Kg. Vatana dal trades at Rs 3,350-3,400.

At Rayalaseema, new Kabuli Chana count 85-90 and Coc-2 variety offered flat at Rs.4,900/100Kgs in loose and Rs.5,000/100Kgs for spot loading. Besides, it quoted down by Rs 100 at Rs.5,400/100Kgs for Delhi-delivery. Today no Delhi buyers were active in purchasing kabuli chana even at lower rates of around 4,900/100Kg from Maharashtra. Farmers opted to keep their produce in cold storages as buyers were inactive due to tight cash liquidity and bumper crop, compared to last year, said local sources. Farmers are liquidating some quantity of their stock at lower rates if they are in need of money.

Selective counts 42-44 and 44-46 of new Kabuli Chana traded firm by Rs 200 at Rs 7,700/100Kg and Rs 7,500 respectively in Indore on lower level buying and slow arrivals as market was closed due to holi festive.

At Indore market, Kabuli Chana Dollar variety traded unchanged at Rs.6,000-6,500/100Kgs despite lower arrivals.

As per market, prices of chana expected to decline at trading centers on increase in domestic arrivals at major states as there is a bumper crop of chana this year because of favourable weather conditions. Madhya Pradesh government has extend ‘Bhavantar Bhugtan Yojana’ for rabi crop and this scheme will see farmers flooding the market with their produce. Under the scheme state government pays the difference between MSP and the market price directly to the farmer. There is a glut of chana in the market but no takers were active in the market. The central agency NAFED has not yet started procurement in all state at MSP prices. Chana prices may not firm, as procurement centres operated in a sluggish manner and very less compare to bumper crop. Many farmers prefer to sell their commodity in the open market at rates lower than MSP. Supply is more, prices may not even cross the MSP.

Imported Masoor (Mumbai):
Canada origin crimson variety masoor along with Australia nugget variety masoor remained weak in Mumbai by Rs 50 to Rs 3,300/100Kg and Rs 3,400-3,500 respectively amid dull millers' buying support, arrivals of new domestic masoor in Madhya Pradesh and Rajasthan at cheaper prices, availability of MMTC auctioned Canada Masoor (2016) at lower rates in Mumbai/Kolkata and sufficient availability of imported stock.

Demand in processed Masoor also reported sluggish from consumption centres. Canada Masoor dal of Bhiwandi mills offered flat at Rs 4,200/100Kgs, for APMC Vashi market delivery.

In forward business, Canada crimson variety masoor offered at $450 per ton in container on CNF basis Nhava- Sheva For March-April shipment. Australia nugget variety masoor offered at $465 per ton in container on CNF basis Nhava- Sheva For March-April shipment.

Imported White Pea (Mumbai):
Canada, Ukraine and Russia origin White Pea at Mumbai remained weak by Rs 30-50/100Kg at Rs 2,911/100Kgs, 2,851 and Rs 2,811 respectively due to subdued millers buying. Importers were releasing their produce post addition of 50% import duty at Mundra/Hajira port as the commodity has approached the parity level (Cost+ import duty).

Demand for processed Matar from consumption centers reported slow as they had purchased it as per their requirements.







Moong (Jaipur):
Moong priced steady in Jaipur market at Rs 4,800-4,900/100Kg during the last week on thin millers trade and sufficient availability of stock with private traders and millers.

Similarly, Moong dal prices priced unchanged at Rs 6,000-6,100/100Kg.

Supply of new moong witnessed at the Srikakulam market of Andhra Pradesh. Crop position of moong for current season is lower compared to last year.

New crop of moong expected to be lower compared to previous year in Odisha due to untimely rain along with delay in harvesting of paddy. Meanwhile, new moong of Ganjam district is expected to begin from March, while in April at Cuttack district. Crop of moong is also expected to be delayed by 10-15 days.

Nafed is active for Sale Of Moong In Maharashtra, Telangana and Madhya Pradesh.

(By Commoditiescontrol Bureau; +91-22-40015513)