MUMBAI (Commodities control) – All pulses, such as Tur, Urad, Chana, Masoor, White pea and Moong edged lower for second straight week ended on Saturday (May 22-27) due to nervousness in the market and lackluster business activity from millers and traders.
Sentiments in pulses remained weak due GST implementation & its impact, higher pulses production, forecast of timely and normal monsoon report by IMD, strong Indian currency and financial problem (less liquidity).
GST is expected to replace a number of central and state taxes with one uniform tax from July 1. 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 replaced with GST. So, we would like to know whether mandi tax will be there or not apart from GST.
Adequate supply of kharif and rabi crop from major producing belt coupled with lackluster demand in processed pulses had also weighed on prices.
Week Highlights
# India Kharif Pulses Sowing As On May 24 At 1.12 Lakh Ha Vs 0.71 Last Year. Tur : 0.06 Vs 0.03, Urad : 0.33 Vs 0.28, Moong : 0.24 Vs 0.15, Other Pulses: 0.49 Vs 0.25.
# The area coverage has reported mainly from states of Karnataka (0.88 Lakh Ha), Tamil Nadu (0.18 Lakh Ha), Assam (0.03 Lakh Ha), Haryana (0.03 Lakh Ha) and Odisha (0.002 Lakh Ha).
# Vessel M V INDIAN SOLIDARITY carrying 70,000 tonnes of Canada yellow pea is arrived at Mundra port on May 25, according to a shipping agency.
# NAFED Invite Bids From Millers For Milling 2584.60 MT Tur Dal In Talukas Of Various district In Karnataka for July under PDS, price printed on 1 Kg pack Rs.38/kg. Last date delivery 20 June.
Burma Lemon Tur:
Burma Tur lemon variety declined last week by Rs.100 to Rs 3,600/100Kgs on lackluster millers buying activity, fresh supply around 222 containers (1 container = 24 MT) from overseas 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.
According to market sources, prices of raw Tur may only sustain if demand supports in processed Tur. Demand in processed pulses is expected in 1st week of June and sentiment in pulses can change after monsoon arrivals. 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. As per traders view, risk level is very low at current level and lower level may attract buyer as government had ordered states to remove stock limit on Pulses. Tur dal consumption will also rise due to higher vegetable prices in coming days, slow crushing of Tur in rainy season, followed by end of mango season from June. Mango consumption usually decreases from June after monsoon arrival.
Prices of processed Tur offered lower by Rs 200/100 Kg as sellers were active in the market. In Maharashtra, processed Tur Phatka Sortex quality priced at Rs 5,600-5,650/100 Kg, semi-Sortex at Rs 5,475-5,500 and non Sortex at Rs 5,350-5,375.
NAFED has resumed buying Tur in Maharashtra and Gujarat under Price Support Scheme (PSS) and has successfully procured 129350.10 MT as on 25th May. Maharashtra: 91,758.02, Gujarat: 37,592.10.
In Maharashtra, around 75 complaints were reported of traders purchasing Tur from farmers at cheaper rates and selling it at NAFED at higher rates. Tur producing farmers in Maharashtra have been facing a crisis in the state after the record production.
Burma Urad:
In Mumbai, Burma origin FAQ and Sq variety Urad was priced lower Rs 100 to Rs 5,000 and Rs 6,100/100Kg respectively in the absence of buying from key consumption centers, fresh supply around 136 containers from Burma, 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 and Gujarat.
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 and FAQ variety price remains flat this week at Rs 6,150/100 kg and Rs 5,150 respectively in ready business amid dull activity.
In forward business, Urad SQ variety traded flat at Rs 6,250/100 Kg for June delivery and Rs 6,300 for July delivery.
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 150 to Rs 5,400 in the last week due to sluggish millers buying, fresh supply around 229 containers of imported Chana from overseas despite 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 6,900/100 Kg, down Rs 250. New Domestic Chana dal of Latur origin was priced weak by Rs 250 to Rs 7,000. Chana besan variety priced lower by Rs 75 at Rs 3,950/50 Kg and Vatana besan at Rs 1,575/50 Kg. Vatana dal was traded lower at Rs 2,700, down Rs 50. While, in Vashi APMC market Australia Chana dal was available at discounted price at Rs 6,800 and domestic chana dal at Rs 6,900.
NAFED procures 38,929.15 MT of Chana As On May 25. Rajasthan: 32,421.97, Madhya Pradesh: 5,709.19 and Uttar Pradesh:798.
Australian origin Chana in ready business at Mundra and Mumbai port fell between Rs 175-225 to Rs 5,625/100Kg and Rs 5,525.
New Chana crop of Australian origin (2017) offered weak at Rs 5,000/100 Kgs, down Rs 100 for October-November shipment and Rs 4,950, down Rs 100 for November-December shipment.
In forward business, Australian Chana offered lower at $890 for June-July Shipment. New crop is priced weak at $745 for October-November shipment.
Kabuli Chana in ready business at Indore market gained by Rs 300/100Kg to Rs 12000 for 42-44 count and Rs 11800 for 44-46 count amid fresh buying support from exporters and stockiest at lower 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, Millers and stockiest were still holding stock of Chana at higher rates and purchasing chana at every dips in market on anticipation that prices may rise in near festive period. Output is likely to be lower than the government estimate.
But, demand is not sustaining at higher rates in chana dal due to ongoing arrivals of raw chana in market, cheaper white pea besan, financial problem (less liquidity) and weakness in all other pulses. Demand in near future will gradually gather pace and support prices till Diwali. Demand in processed pulses is expected in 1st week of June and sentiment in pulses can change after monsoon arrivals.
Masoor (Mumbai)
Canada origin crimson variety Masoor edged lower this week Rs.100 to Rs 3,500-3,700/100Kgs amid sluggish buying support, higher supply in break bulk vessel, fresh supply around 221 containers 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 lower at $570 per tonnes.
In order the support the falling prices NAFED has procured 8,387.34 Metric Tonnes (MT) of Masoor as on May 25, 2017 from major states. Madhya Pradesh: 4,439.89 and Uttar Pradesh: 3,947.45.
Canada White Pea (Mumbai)
Canada origin white pea at Mumbai offered down marginally to Rs 2,181/100Kgs 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 Indian Solidarity, 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 weak at Rs 2,175/100Kgs 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 $330 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 4,500-4,600/100Kg 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 5,600/100Kg. Arrivals of summer crop new moong have started in few markets of Madhya Pradesh and Gujarat. Summer crop moong was traded cheaper at Rs 4,000-4,200/100Kg at Indore market.
Prices of moong are unlikely to sustain due sufficient kharif crop in Rajasthan and Bihar. 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.
NAFED Procures 10.39 MT Moong in Odisha Under PSS On 25 May at MSP prices of Rs 5225 (Rs 4800+425 bonus).
Government's targets Moong purchase in Odisha with estimates around 2.50 lakh quintals through NAFED, MARKFED and Odisha State Cooperative Marketing Federation Ltd.
(By Commoditiescontrol Bureau +91-22-40015513)
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