Weekly: Tur/Chana Plunge Most This Week, Masoor Trades Mixed

MUMBAI (Commodities control) – Tur, Chana prices ended lower for the week ended 9th May due to dull buying by millers, While Masoor prices traded mixed amid limited buying support. On the other hand, Urad, Moong and White Pea traded nearly flat on thin trade activity.

Demand and sale counter in processed pulses reported thin activity due to availability of sufficient stock at wholesale/retail counters.

Rabi crop Chana crop (Season) output is expected to rise 41% to 810,000.
# Government has drawn ire, from the trader community in Rajasthan, with the announcement to levy 2% tax on every transaction in the State agricultural mandis.

Burma Lemon Tur:
Desi tur in domestic market slipped by Rs 150-200/100Kg due to thin millers’ trade activity as ratio of profit margin in crushing Tur has reduced compared to last week and also ongoing domestic arrivals.


Government agency was active in getting raw Tur converted into Tur Dal from private millers. This Dal is used by government agencies to distribute it through Public distribution system(PDS).Due to this reason demand for Tur dal in open market is getting reduced and hence impacting prices.

On the other hand, Tur Lemon variety of Burma-origin was priced unchanged in Mumbai/Delhi amid negligible trade activity.

Negligible buying from mills in imported Tur is the major reason, as millers' prefer new domestic due to better quality and lower transportation cost over raw tur from nearby mandi. imported Tur, on the other hand, is to be transported from port cities like Mumbai, Kolkotta and hence transportation cost is comparatively higher.

NAFED Procured 125337.98 MT (PSF)/ 459436.33 MT (PSS) Tur at MSP of Rs 5,800/100Kg, as On May 4, 2020.

Trade is of the opinion that Tur prices are likely to get support at lower rates on expectation of monthly counter soon. Increase in consumption of dal due to cheaper prices compared to Mango/Vegetables will continue to support prices.

Burma Urad:

Burma-Urad traded almost range bound at Mumbai markets amid negligible buying activity from millers and traders amid sluggish offtake in processed Urad and liquidity crunch. There is huge impact in demand as Papad manufacturing units are closed due to lock down. Summers are the peak season for Papad manufacturing.

Moreover, summer crop arrivals of new Urad and expectation of overseas supplies in near future has pressurized buyer sentiments.

As per Burma-based trader, all direct vessels carrying Urad cargo around 600 containers had sailed from Yangon for India (Chennai) port and expected to reach on 13th May at Indian shore. (Each container= 24 MT).

Meanwhile, Supreme Court has pushed the date of hearing on pulses import restrictions till May 11, 2020.

DGFT extended the deadline for import of additional quota of 2.5 lakh tonnes Urad to May 15, 2020, against quota allocated for the year 2020-21. Earlier this date was 31st March which was extended to 30th April.

Chana Kantewala (Indore):

Chana prices declined by Rs 75-125/100Kg in domestic markets, tracking futures, pick up in mandi arrivals and thin millers' trade at prevailing rates.

Even demand for chana dal and besan was lukewarm at wholesale/retail counters due to availability of sufficient stock.

However, millers are getting good profit margin in crushing at prevailing rates. Some export demand in Chana dal was witnessed, but in a low quantity and at slower pace.

Moreover NAFED's stock liquidation at selected states, holding major stock and higher output estimates will keep a check on prices.

As on May 4, 2020, NAFED has successfully procured 301046.76 MT of Chana at Minimum Support Price of Rs 4,875.

As per market experts, Chana prices are unlikely to fall much in near future. Meanwhile, prices are trading in a narrow range at spot markets due to lockdown resulting in labour shortage and transportation concerns, despite relaxations assured by government. Trade activity is thin because of cash crunch and with just 25-30% market participations are active. Sections of major traders/millers are still not operating. Daily arrivals of new rabi crop are still below expectation. Procurement by government agency are going on will support prices at lower rates. Moreover, zero import quota of yellow peas for the current fiscal will support the prices.

Imported Masoor (Mumbai):

Canada crimson variety Masoor at Mumbai and Mundra port along with Australia Masoor at Mumbai moved higher by Rs 50/100Kg amid improved buying activity.

Similarly, Canada Masoor traded higher by Rs 175/100Kg at Mundra port on buyback by importer.

Vessel M V Federal Indus carrying 16,800 tonnes of Canada Masoor arrived at Adani Hazira Pvt Port on 8th May.

On the other hand, domestic Masoor traded weak by Rs 50-100/100Kg at domestic market amid thin buying from millers at amid less ratio profit margin and ongoing arrivals.

Moreover, demand and sale counter in processed Masoor reported thin activity at higher rates due to availability of sufficient stock at wholesale/retailer counters.

However arrivals continue to be below expectation in Madhya Pradesh/Uttar Pradesh/Chhattisgarh due to lockdown. Even pace of crushing by millers is slower than usual due to labour shortage.

As per market view, Masoor prices are likely to get support from limited stock of ready imported Masoor, higher import parity and below expectation arrivals of rabi masoor crop due to nationwide lock
down and lesser acreage.

Imported White Pea (Mumbai):

Prices of White Pea ruled steady to firm at Kanpur market amid mill buying activity and arrivals were below expectation as major producing centers were closed in Uttar Pradesh.

However limited trading volume was witnessed as millers preferred to stay with desi Chana/Kabuli Chana due to cheaper prices and easy availability.

No quotes of imported White pea were available in Mumbai/Kolkata
from over a month due to lockdown and negligible stock.

Moong (Jaipur):

Moong prices traded almost flat, as per quality, due to new summer crop arrivals and thin mills’ buying due to crushing disparity, as demand in processed Moong was reported to be weak. Sellers were active in the market to liquidate their stocks. New crop arrival is likely to pick up soon in various states, Gujarat, Madhya Pradesh, Uttar Pradesh, Bengal and Bihar.

Recent rains in the producing regions of Bihar/Jharkhand have destroyed summer crops, moong and urad, due to water logging in the fields. Generally in these regions farmers prepare the fields for moong sowing after the harvest of rabi crops like wheat, mustard and chana. The extent of destruction is yet to be estimated.

Meanwhile, the government has allowed import quota of 1.5 lakh tonnes of Moong for the fiscal year 2020-21, only for millers and refiners.

As per market trend, Moong prices will be pressurised in the short term as consumption is likely to suffer at higher rates. However, eventually lower output, low stocks with government agency/private traders along with smaller moth crop should support the prices.