Weekly: Chana Major Looser Among Pulses This Week On Lackluster Cues

MUMBAI (Commoditiescontrol) – Chana was among the major looser this week (April 23-28) in pulses complex followed by urad and masoor, however some fresh buying at the lower level pushed up matar, tur and moong prices.

The government took bold decision this week on Wednesday (Full Report) to restrict matar imports in a bid to support domestic pulses as it account major share in total imports over the years.

Overall the market condition is not encouraging as stockists are mostly on the sideline, while demand in processed pulses was also sluggish amid slow buying by retailers and wholesalers followed by liquidity/cash crunch.



Burma Lemon Tur (Mumbai): – Lemon tur prices fell this week nearly 2% to last trade at Rs 3,700/100kg at the benchmark Mumbai market due to lacklustre buying support from local and upcountry buyers.

Demand in Tur dal is very poor at present mainly due to mango season arrival followed by abundant availability of vegetables at competitive rates.

The sentiment was also weighed by increased supplies as the government agencies are offloading stocks at the lower rates and liquidity crunch.

Stockists are sidelined and not interested to procure Tur as state government has directed APCMs to make sure that Tur shouldn’t be purchased below MSP and warns of necessary action against traders involved in such trades.

Prices were also pressured as procurement of Tur has almost stopped in most states, excluding Gujarat. Tur procurement in Maharashtra is likely to start soon as the Centre had extended procurement date until May 15.

Nafed has so far procured 7.66 lakh tonnes of Tur from Telangana, Karnataka, Maharashtra, Andhra Pradesh and Gujarat.

Chana Indore Kantewala (Indore): – Chana was among the major looser this week with prices declining as much as 5% at 3,550/100kg at the benchmark Indore market amid poor domestic demand, new crop supply and bearish futures.

Demand in chana dal is subdued and thus millers are sidelined or buying hand-to-mouth. The major reason behind sharp losses in chana prices in the recent times is lack of stockists demand.

Stockists have incurred huge losses in last couple of years due to volatility in prices amid higher production and uncertain state and centre policies.

Further, slow procurement by government agencies has forced farmers to sell their stocks in the market to private traders at the lower rates, however there are few takers of the commodity amid constant fall in prices. Also Nafed is procuring selective chana (FAQ) variety only, while rest is rejected, which farmers bring to market yards to liquidate.

Nafed procured 3.46 lakh tonnes chana, which is just 3.15% of estimated 110 lakh tonnes production.

According to data compiled by CC received from various state, the total procurement target of chana is approximately 42.44 lakh tonnes.

Burma Urad FAQ (Mumbai): – Burma urad FAQ variety dropped this week by 2.7% at Rs 3,650/100kg at the Mumbai market on lacklustre demand from upcountry buyers amid availability of adequate stock on the back of fresh arrivals of rabi domestic crop in Andhra Pradesh/Tamil Nadu.

South India based Millers and traders were purchasing domestic urad from Madhya Pradesh, Rajasthan and Uttar Pradesh as they were getting superior quality stocks at cheaper rates.

Liquidation of procured stock by government agencies such as Nafed/FCI at lower prices has also exerted pressure.

Further millers prefer to buy urad auctioned by Nafed, which is available at approximately Rs 3,200-3,350/100kg, much lower than MSP of Rs 5400.

Desi Moong (Jaipur): – Moong priced gained by 2% this week to close at Rs 5,000/100kg at the key Jaipur market of Rajasthan on some good buying by millers.

There was good demand witnessed in the spot markets from millers as they were active to replenish stock. Millers in the recent times have slowed buying, but now buying slowly to meet their commitments.

Although moong prices traded positive, but upside is limited as arrivals of summer crop moong are expected to begin from May-June in Madhya Pradesh, Uttar Pradesh, Gujarat and Bihar. Further Nafed is active for sale of Moong in Maharashtra, Karnataka, Madhya Pradesh, Andhra Pradesh and Telangana.

Imported Masoor (Mumbai): – Canada crimson masoor dropped by 1.4% at Rs 3,600/100kg due to slow buying from local and upcountry traders and millers despite negligible supply from overseas.

Demand in masoor remained subdued from millers amid poor buying in masoor dal from consumption centers. Retail and wholesalers are buying only as per requirement due to weak outlook. However sharp fall in prices is unlikely due to negligible supply from overseas.

Imported White Pea (Mumbai): – Matar prices were volatile during the week after Indian government on Wednesday put quantitative restriction on matar import for 3-months with limit of 1 lakh tonnes.

Matar prices edged higher this week by 1.8% at Rs 3,200 at the Mumbai market.

Matar price recorded good rise after the restriction but gave away some of the gain in the absence of demand at the higher level. However, downside in matar prices is limited due to significant gap in supply-demand amid poor import. Approximately 90% of India’s matar demand is met through import.

Demand in Matar dal and matar besan is not very encouraging at the moment and thus major upside unlikely in the near term.



(By Commoditiescontrol Bureau; +91-22-40015533)