MUMBAI (Commoditiescontrol) – Major pulses, such as Tur, Urad, Chana, Masoor, White pea and Moong edged lower last week ended on Saturday (May 13-20) due to lackluster business activity from millers and traders.
Sentiments in pulses remained weak due higher pulses production, forecast of timely and normal monsoon report by IMD, strong Indian currency and financial problem (less liquiditity).
Adequate supply of kharif and rabi crop from major producing belt coupled with lackluster demand in processed pulses had also weighed on prices.
GST is expected to replace a number of central and state taxes with one uniform tax. Government announced that food items – pulses would get cheaper. GST is coming but there is still no clarity on whether the existing taxes, like mandi tax, will be merged with GST. "For instance, in Uttar Pradesh, there is 2.5% mandi tax and a VAT of 4%. These, however, vary from state to state. So, we would like to know whether mandi tax will be there or not apart from GST.
Week Highlight
# The monsoon is set to hit the southern state of Kerala on May 30, according to the India Meteorological Department. The rains are expected to be normal this year.
#Ramvilas Paswan Said States Are Independent To Remove Stock Limit On Pulses. Centre In Oct 2015 Provided Rights To States To Put Stock Limit. India Government In Notification Informed Removal Of Licensing Requirements, Stock Limit & Movement Restrictions On Pulses With Immediate Effect.
# Maharashtra Government Kharif 2017 Pulses Target Area Vs Last Yr (In Lakh Ha). Tur: 11.99 Vs 15.32, Urad: 5.1 Vs 4.45, Mung: 5.60 Vs 5.12, Other Pulses: 1.79 Vs 0.88, Total: 24.48 Vs 25.77.
# Goverment To Allocate 60,975 Free Pulses Seed "Minikits" For 2017-18. Govt Would Distribute 13905 Minikits Of Tur/Urad/Mung Seeds In Kharif & 39410 Minikits Of Chana/Masur Seeds In Rabi.
# Government May Hike Tur MSP To 5450 (Inc 200 Bonus) From 5050. MSP At 5575 (Incl 200 Bonus), & Urad MSP At 5400 (Incl 200 Bonus).
Burma Lemon Tur:
Burma Tur lemon variety declined last week by Rs.300 to Rs 3,650/100Kgs on lackluster millers buying activity coupled with regular arrivals of domestic tur in major markets. Demand in processed tur from consumption centers was sluggish and sellers in processed tur were active in the market.
Removal of stock limit helps traders, millers and bulk buyers to buy more Tur, which in turn can arrest the falling prices. But, this decision is hardly going to benefit farmers as they have already sold their produce.
Buyers were still hesitant to purchase after government decision as they were concerned that government can change their decision in future on any rise in prices and impose stock limit before giving any time limit to clear stock, which they had done earlier.
According to market sources, demand in processed Tur is not sustainable at higher rates as sellers were active in the market as this year retailers/wholesalers/millers and consumers having sufficient stock in their hands due to cheaper prices compared to last year.
Last year, around 40% millers were operated mills due to shortfall in production and higher prices. However, due to bumper production this year coupled with ample availability of raw material, all the millers operating thereby resulting in the higher supply of tur dal comparing to the last year.
Prices of processed Tur offered lower by Rs 300/100Kg as sellers were active in the market. In Maharashtra, processed Tur Phatka Sortex quality priced at Rs 5,700/100Kg, semi-Sortex at Rs 5,475-5,500 and non Sortex at Rs 5,350-5,400.
NAFED has resumed buying Tur in Maharashtra and Gujarat under Price Support Scheme (PSS) and has successfully procured 61,480.10 MT as on 18th May. Maharashtra: 36,837.50, Gujarat: 24,642.55.
Wide variation in projections of tur yield and crop size in Maharashtra led to mismanagement in procurement, experts and farm activists said.
Maharashtra government can approach the Centre to get permission to purchase more tur from farmers. As the farmers are facing plunging tur prices because of a bumper crop.
Burma Urad:
In Mumbai, Burma origin FAQ and Sq variety Urad was priced lower Rs 350 to Rs 5,150 and Rs 6,250/100Kg respectively in the absence of buying from key consumption centers, weak cues from Burma market. Demand in processed Urad was dull from consumption centers due to hot weather. Arrivals of summer crop urad had began in few markets of Madhya Pradesh. Supply pressure from Burma is expected in near future at Chennai port.
Kharif Urad supply from Madhya Pradesh, Andhra Pradesh and Uttar Pradesh is available in market at cheaper prices compared to imported Urad.
At Chennai, Urad SQ variety price remains weak by Rs 400 this week at Rs 6,150/100kg in ready business amid dull activity as sellers were active in market. Similarly, urad FAQ variety also fell by Rs 300 to Rs 5,150/100Kg.
Millers and traders of Chennai prefers to purchase Urad gota from Madhya Pradesh, Gujarat and Rajasthan due to cheaper prices in discount & claim condition.
Buyers are concerned as carryover crop of Burma and good production of Urad crop in the prevailing year accompanied with availability of domestic Urad in the country is sufficient to cater the demand.
Chana Kantewala (Indore):
Chana declined by Rs 300 to Rs 5,500-5,525 in the last week due to subdued millers buying despite slow supply of overseas crop, mainly from Australia and also low arrivals in domestic markets. Further, dull buying support from consumption centers had pressurized the price as sellers were active in processed Chana.
Demand in Chana dal was reported dull from consumption centers. Milled Australian Chana quoted lower at Rs 7,150/100 Kg, down Rs 150. New Domestic Chana dal of Latur origin was priced weak by Rs 150 to Rs 7,250. Chana besan variety priced lower by Rs 30-35 at Rs 4,025/50 Kg and Vatana besan at Rs 1,600/50 Kg. Vatana dal was traded flat at Rs 2,750. While, in Vashi APMC market Australia chana dal was available at discounted price at Rs 6,950 and domestic chana dal at Rs 7,050.
NAFED procures 34,858.55 MT of Chana As On May 18. Rajasthan: 29,647.87, Madhya Pradesh: 4,447.08 and Uttar Pradesh:763.60.
Australia origin Chana in ready business at Mundra and Mumbai port fell between Rs 325-550 to Rs 5,725/100Kg and Rs 5,650.
New Chana crop of Australian origin (2017) offered weak at Rs 5,100/100Kgs, down Rs 250 for October-November shipment.
In forward business, Australian Chana new crop is priced at $760 for October-November shipment and $750 for November-December shipment.
Kabuli Chana in ready business at Indore market fell by Rs 100/100Kg to Rs 12000-12100 for 42-44 count and Rs 11900-12000 for 44-46 count amid absence of buying support from exporters and stockiest at existing level.
Farmers were less interested to liquidate their stock in the market due to low prices and also they had purchased seeds at higher rates.
Traders and Millers were still holding stock of Chana at higher rates in anticipation of prices may rise in near festive period.
The outlook in Chana is said to be positive as main consumption period starts from Ramadan and until Diwali festival (May-October). Since the upcoming occasions are ahead of the demand will gradually gather pace and is likely to remain upside side till Diwali.
Masoor (Mumbai)
Canada origin crimson variety Masoor edged lower this week Rs.150 to Rs 3,600-3,750/100Kgs amid sluggish buying support, higher supply from overseas, weak trend in Tur prices coupled with supply of new crop from Uttar Pradesh, Bihar and Madhya Pradesh.
Upcoming supply pressure from break bulk vessel Ultra Integrity, Rigi Venture and Qing Yun Shan at Mumbai port would also add pressure in near future. Importers were bearing huge losses due to difference in purchase cost against current market prices.
Masoor of Australia origin in forward business Nugget variety for June-July shipment is offered at $600 per tonnes.
In order the support the falling prices NAFED has procured 6,218.19 Metric Tonnes (MT) of Masoor as on May 18, 2017 from major states. Madhya Pradesh: 2,700.39 and Uttar Pradesh: 3,517.80.
Canada White Pea (Mumbai)
Canada origin white pea at Mumbai and Mundra port offered down by Rs.70 to Rs 2,201/100Kgs on sluggish trade activity at existing rates, regular arrivals of new domestic white pea in major markets and fresh supply in breakbulk vessel Rigi Venture and upcoming supply from vessel Ultra Integrity, Cooper and Qing Yun Shan from Canada. Business activity in matar dal and besan was dull from consumption centers.
While, new crop Canada white pea (2017) offered flat at Rs 2,225/100Kgs on negligible trade activity for September-October shipment.
In forward business, Canada white pea new crop offered at $318 for September-October Shipment. Russia white pea quoted at $340 for May-June shipment. Good flow of overseas and domestic supplies likely to keep matar prices under pressure in the near term.
Moong (Jaipur)
Moong priced ruled weak at Rs 4,700-4,800/100Kg during the last week in the absence of encouraging advices from the demand side. Miller's inquiry was mostly dull in processed moong. Similarly, moong dal prices also remained lower at Rs 5,800-6,000/100Kg. Arrivals of summer crop new moong have started in few markets of Madhya Pradesh and Gujarat. Summer crop moong was traded cheaper at Rs 4,300-4,600/100Kg at Indore market.
Prices of moong are unlikely to sustain due sufficient kharif crop in Rajasthan. Moreover, moong crop in the country is cultivated throughout the year and thus crop is mostly available abundantly for domestic consumption.
Moong acreage is likely to be higher this kharif season 2017 due to low cost and also shifting from tur to cotton and moong due to poor realization in tur.
After Odisha crop in April, summer crop of Madhya Pradesh, Gujarat and Maharashtra will be available in May month followed by West Bengal crop by May-end and then followed by Bihar crop from first week of June.
Procurement Of Moong Resumes by next week in centers of Jagatsinghpur, Raghunathpur and Balikuda of Odisha. Government's demand to begin Moong purchase in Odisha with estimates to purchase around 2.50 lakh quintals through NAFED, MARKFED and Odisha State Cooperative Marketing Federation Ltd. Besides, farmers are forced to sell their produce of Moong way below the minimum support price at prevailing market rates around Rs.3,000 to Rs.3,500 per quintal according to quality.
(By Commoditiescontrol Bureau +91-22-40015513)
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