Weekly: Masoor Surges After Duty Hike; But Chana Pares Gain

MUMBAI (Commoditiescontrol) – A strong movement witnessed in raw pulses during the week ended Saturday (December 18-23) at the benchmark market across the country on strong demand supported by 30% duty imposed on Chana and Masoor.

India government on December 21 announced to slap 30% import duty on Chana and Masoor with immediate effect in a bid to safeguard interest of farmers.

Ministry of Finance in a release said “Production of Chana (Chickpeas) and Masoor (Lentils) are expected to be high during the forthcoming Rabi season, and cheap imports, if allowed unabated, are likely to adversely affect the interest of the farmers. Taking these factors into consideration and to protect the interest of the farmers Government has decided to increase the said import duty.”

In other news, Rabi pulses sowing in the country as on December 20 stood higher at 146.06 lakh hectares against 133.94 lakh hectares a year ago. (Full Report)

Canada 2017-18 Masoor Crop Estimates Lower At 2.56 Million Tonne – AAFC (Full Report)
Canada 2017-18 Matar Ending Stock To Rise On Lower Export – AAFC – (Full Report)



Canada Masoor – Mumbai
Masoor was the top gainer in raw pulses this week with prices rising as much as 15.15% to Rs 3,800/100kg, highest level since May 17, 2017. The rise in prices were mainly attributed to sharp hike in import duty at 30%.

India masoor import during April-September surged 351.17% to 5.66 lakh tonnes against 1.25 lakh tonnes a year ago. Canada was largest exporter with share of nearly 68% at 3.83 lakh tonnes followed by 1.64 lakh tonnes from Australia.

Domestic traders and millers turned active in the market with anticipation of more rise ahead as duty hike will restrict imports due to costlier rates. Further supply from overseas is also likely to get affected ahead of expiry (December 31) of exemption on fumigation on pulses import from Canada.

Masoor prices at the benchmark Indore market rose as much as 12% at Rs 3,300/100kg due to good buying observed from traders and millers.

Madhya Pradesh and Uttar Pradesh origin Masoor at Kanpur market gained around 9% to trade at Rs 3,700 and Rs 3,750.

Other hand, masoor sowing in the country as on December 20 increased year-on-year by 4.21% at 16.57 lakh hectares. Acreage of Masoor turned higher in Uttar Pradesh, West Bengal and Bihar, whereas decreased in Madhya Pradesh. (Full Report)

Weather is favorable in Masoor producing regions across the country and yield is expected better than last year and has raised prospects of better crop this year.

Masoor prices in the near-term is expected to trade steady to firm due to expectations of overseas supply to dried up after duty hike. Stocks in the country is sufficient due to higher import, but sellers having stocks are likely to sell it gradually at higher rates.

Burma Lemon Tur – Mumbai
Burma Lemon Tur prices rose by 14% at Rs 4,050/100kg at the Mumbai pulse market due to increased off take from traders and millers.

Desi Tur edged higher by 10.25% at 4,300/100kg at the benchmark Akola market of Maharashtra, while surged 12.20% at 4,600 at Gulbarga market of Karnataka.

The rise in prices was mainly due to good demand traders and millers due to depleting inventory and strong demand witnessed processed Tur from consumption centers.

Demand in Processed Tur during the first couple week of current month was average, but turned strong this week, which has prompted millers to replenish stock.

Though supply of new Tur has started in Maharashtra, Karnataka, Uttar Pradesh and few other states, but the pace is very slow, particularly in Maharashtra.

The millers are mostly buying Tur auctioned by Nafed as quality is superior and rate is very competitive. Nafed has received good response for Tur auction during the last few weeks. It has sold 2,930 metric tonnes of Tur on December 21 between Rs 3,575 to Rs 4,402/100kg. (Full Report)

According to traders, “Tur production this season is expected significantly lower than last year and thus millers have turned active to procure the commodity to meet rising demand for processed Tur.”

Tur prices just not only surged in the domestic, but also recorded strong gain of nearly 15% in Burma market. Lemon & Linkely Tur in CNF each was last traded at $390 per tonne. New crop has entered in Burma market.

Tur production in Burma this year is expected at 2.5-3 lakh tonnes against 3 lakh tonnes, said a local trader.

Indian buyers as well local stockists are actively procuring Tur with assumption of better return ahead as prices are available around bottom level.

A Burma-based trader said “India buyers are procuring Tur as annual restriction period will expire on March 31 and thereafter the country is eligible to import 2 lakh tonnes as per government notification. The importers are keeping Tur in Burma warehouse after procurement as the country has already imported the amount of Tur fixed by the government.”

Tur prices in the near term may trade steady-easy due to expectations of supply to increase ahead, but sharp fall will be capped by lower crop prospects and good demand.

Chana Kantewala – Indore
Hike in duty pushed Chana prices higher by 9% to Rs 4,250/100kg at the benchmark Indore market of Madhya Pradesh. The price earlier this week rose to 4,400/100kg after government slapped a 30% import duty on December 21.

In Delhi, Rajasthan origin Chana notched gain of 10.58% to 4,700/100kg.

Chana pared gain from high earlier made this week as buyers turned sideline to procure the commodity at the higher level amid expectations of bumper crop this season due to good rabi Chana crop progress. Further the early sown Chana supply has started at slow pace in few pockets of Maharashtra. The peak arrival season for Chana is February-March.

According to recent agri ministry data, Chana acreage in the country advanced by 13.87% at 99.88 lakh hectares versus 87.71 lakh hectares previous year. (Full Report)

The prices in the spot market recorded sharp gain in the domestic market post duty hike, but demand was not as strong as was expected. Activity in the market remained as it was earlier before duty. It was the sellers who have raised sharply their offer prices, but later on forced to cut it due to poor demand.

In other news around 408 container (24 MT each) of Australia Chana reached at JNPT port this week.

On derivatives, the most active January delivery Chana settled this week with gain of 7.50% at Rs 4,250/100kg on the National Commodity & Derivative Exchange Ltd (NCDEX). April Chana futures rose as much as 3.84% at Rs 3,890.

Chana prices is expected to trade bearish ahead as market has digested duty news. Increase in import duty is now discounted in the market mainly due to expectations of bumper crop.

Burma Urad FAQ – Mumbai
Burma Urad FAQ moved up by 6.41% to Rs 4,150/100kg at the key Mumbai pulses market this week supported by good buying from traders and millers and tracking gain in other pulses. Desi Urad at Jalgaon market advanced by 6.6% at 4,800.

The consumption of Urad dal is said to be good and thus millers are buying the commodity in good quantity due to ample availability.

Millers prefer to procure desi Urad rather than imported as it is accessible at competitive rates. The new crop supply is slower than market expectations due to lower rates. The crop is said to be better in the country this year due to higher acreage and good yield.

Earlier Nafed was active in Maharashtra. The nodal agency has procured 137,615.37 metric tonnes of Urad from Kharif crop at MSP of Rs 5,400 as on December 14. However, no procurement has made as by them after December 14 as per data available on Nafed website.

Nafed has procured this urad from Rajasthan, Telangana, Karnataka, Maharashtra, Gujarat and Andhra Pradesh.

Rabi urad sowing in the country as on December 20 stood at 5.76 lakh hectares compared with 5.60 lakh hectares a year ago. (Full Report)

Burma Urad FAQ and SQ variety moved up by 13-14% at CNF $510 per tonne and $625. The new crop in Burma has started and crop is said to be more or less around last year’s level as higher yield offset acreage losses. Urad crop was pegged at 5 lakh tonnes compared with 5-6 lakh tonnes a year ago, said a local trader.

The rise in prices of Urad in Burma was attributed to strong overseas buying. The investors are procuring Urad with a view that India government may provide some relaxation on import later next year and they can get good return on their investment.

Urad price next week is expected to trade steady with negative bias as supply pressure is expected to mount due to good crop. In Madhya Pradesh, farmers have sold their major crop under ‘Bhavantar Bhugtaan Yojna’.

Canada Matar – Mumbai
Canada matar recorded gain of 2.35% to Rs 2,611/100kg during the current week at the Mumbai market due to prevailed good demand from local and upcountry buyers.

There has been strong buying observed in Matar from north and north-east India. Buyers are doing buying even in bulk quantity as they expect prices to remain elevated due to restricted supply from overseas amid higher landed cost after India government slapped 50% import duty.

The domestic demand is heavily relying on Matar import and restriction will lead to supply contain going forward. Stocks of Matar at present is sufficient, but sellers holding stocks are releasing their produce in gradual manner with anticipation of better return ahead. Further many importers have took delivery of Matar by paying 50% duty on it and thus they want to sell it at higher rates.

According to experts, earlier there was some possibility of shift in demand from Matar to Chana as spread is narrowing between the two. If the spread between Chana and Matar reduce and sustain below Rs 1,500 then there is possibility of around 10% demand to shift to Chana.

Matar price is expected to trade steady to positive in the near term due to slow selling by stockists and importers amid restricted supply from overseas.

Desi Moong – Jaipur
Desi moong improved by nearly 2% to Rs 5,200 at the Jaipur market of Rajasthan on some good buying at the lower level. The gain other pulses also helped revival in moong prices.

Demand in moong is mostly need-based at present as buyers are not in hurry anticipating that there is ample crop available in the country, which can be sourced around these level in future.

Rabi moong sowing in the country as on December 20 reached at 2.31 lakh hectares against 2.98 lakh hectares previous year. (Full Report)

Nafed has procured 207,266.61 metric tonnes of moong as on December 14 from various state. The nodal agency has purchased 3329.259 MT from Telangana, 21902.135 in Karnataka, 166,266.081 in Rajasthan, 4163.048 in Maharashtra and 11,70.05 metric tonnes in Andhra Pradesh.

Moong prices in the country is likely to trade steady in tight range due to limited demand.

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