Weekly: Pulses Slump On Listless Demand, Adequate Stock, New Arrivals

MUMBAI (Commoditiescontrol) – Major pulses, such as Tur, Urad, Masoor, White Pea, Moong, Chana along with Kabuli Chickpea traded lower for week ending on Saturday (January 15-20) amid dull trade activity, adequate stock and lacklustre demand in processed pulses. The demand for processed pulses is low as vegetable prices have declined during winter season and sale counter remained sluggish.

Pulse prices across the country remained below the minimum support price (MSP) for the previous season and are expected to remain bearish this season as well. While the government has taken a series of steps such as removal of export curbs on pulses, imposing import duty, import restriction and removal of stock limit.

Week Highlights

# India's Rabi pulses sowing is up by 4.72 % as on January 19 to 163.11 lakh Ha vs 155.76 last year at the same period. Chana : 106.23 vs 98.47, Masoor : 17.27 vs 17.21, Field Pea : 11.85 vs 11.88, Urad: 7.91 vs 8.42, Moong : 5.77 vs 5.68,Other Pulses:6.06 vs 6.21.
# Pulses Import At Chennai Port (Dec Vs Nov) In MT. Matar:3024 Vs 3672, Chana:7680 Vs 4200, Masoor:3480 Vs 18072, Tur:456 Vs 384, Urad:2880 Vs 576, Others:1008 Vs 1728, Total:18528 Vs 28632.
# USDA Estimate Of United States (US) Matar In Dec 2017 VS Last Year (In Metric Ton). Production: 643,065MT VS 1.26 Million MT. Stock Position: 430,146MT VS 676,585MT.
# Dharmabad (MH) APMC Authority Asks Traders To Procure Tur & Chana At MSP Of Rs 5450 & Rs 4400 Respectively. Legal Action Will Be Taken Against Trader Found Buying Below MSP.
# Pulses Import At Nhava Sheva Port (Dec Vs Nov) In LT. Matar:1728 Vs 226502, Chana:100750 Vs 79872, Masoor:8784 Vs 51516, Tur:27264 Vs 29424, Others:4752 Vs 8592.Total:143278 Vs 395906.
# USDA Estimate Of US Masoor In Dec 2017 V/S Last Year. Production: 339,381MT VS 575,388MT.Stock Position: 190,329MT VS 238,592MT.
# Maharashtra Government Extends Urad Procurement Date To Jan 20 From Jan 12. The Government Given Approval To Procure Additional 6500Tn. Nafed Procures 52,000MT In MH As On Jan 8.

Burma Lemon Tur:

Tur Lemon variety of Burma origin declined by Rs 225 at Rs 3,900/100Kg at Mumbai amid increased domestic arrivals in producing states and also dull millers buying as demand in processed tur was negligible from Wholesalers/retailers counters.

Karnataka Second Advance Estimates For 2017-18 Vs 2016-17(IN MT). Tur:748000 Vs 1,212000. Andhra Pradesh second advance estimates for 2017-18 Vs 2016-17(IN MT). Tur:139000 Vs 132000.

MMTC E-bids for sale of 2375 MT Malawi tur whole 2016 FAQ (+/-2%) lying in Chennai. Minimum bid qty 150 MT each. Tender open/close 23 January, Valid up to 29 January.

NAFED Issued Tender To Sale 311621.99 Quintal Tur-PSS (Kharif 2016-17) lying in State of Maharashtra on 19.01.2018 through MSTC Limited.

NAFED Issued Tender To Sale 45608.999 Quintal Tur-PSS (Kharif 2016-17) lying in State of Maharashtra on 19.01.2018 NCDEX e Markets Ltd (NeML).

In Kanpur, Maharashtra origin (Hinghanghat/Nagpur), tur dal old and new Phatka Sortex quality priced lower by Rs 250-300 at Rs 5,750/100 Kg and Rs 5,900, old and new semi-Sortex at Rs 5,575-5,600 and Rs 5,800, old and new regular variety at Rs 5,400 and 5,600 respectively. Trade activity were reported negligible as sellers were active in the market.

Gujarat origin Wasat Phatka variety new offered unchanged at Rs 6,400-6,600/100Kg and old at Rs 6,000-6,200.

Similarly, Latur origin new Phatka variety also quoted flat at Rs 6,300-6,400/100kg and old at Rs 6,100. On other hand, Jalna origin new phatka variety remained weak by Rs 100 at Rs 6,300-6,500/100Kg.

As per market talk, arrivals of new domestic tur likely to gain momentum as weather is favorable for harvesting tur in producing states coupled with slow procurement process in Karnataka/Andhra Pradesh/Telangana and also delay in Maharashtra. Farmers will have to liquidate their stock in the market at low current prices in need for money. Prices expected to remained weak in coming days for short term period on arrivals pressure of tur and also other commodity such as chana, kabuli chickpea and masoor.

Burma Urad:

In Mumbai, Old and new crop of Burma Urad FAQ variety remained weak by Rs 125-150 at Rs.3,850 and Rs.3,900 per quintal respectively due to absence of millers buying activity. Meanwhile, sufficient supply of domestic crop across the country and availability at competitive rates have exerted pressure on prices of commodity.

Moreover, demand for processed urad from consumption centers also remained weak.

Bikaner origin branded Urad dal price offered Rs 4,900-5,100/100Kg. Tiranga brand of Mumbai at Rs 5,500/100Kg. Parivar brand of Jalgaon at Rs 5,250/100Kg.

At Chennai, Urad SQ declined by Rs 100 to Rs 5,000/100Kg on sluggish buying and sellers were active in the market. On other hand, Urad FAQ variety quoted unchanged at Rs 4,100.

Statewise Rabi Urad Sowing Down 6.06 % As On Jan 17 Vs Same Period Last Yr (LAKH HA). Andhra Pradesh:3.08 Vs 3.55, Tamil Nadu:2.58 Vs 2.55, Odisha:1.99 Vs 1.94. Total:7.91 Vs 8.42.

NAFED Issued Tender To Sale 15530.49 Mts Urad-PSS (Rabi 2017) lying in State of Madhya Pradesh on 19.01.2018 through nafed.agribazaar.com.

Urad prices are already in floor now but weak trend in other pulses and new arrivals of other domestic pulses dampened the sentiment. But prices are likely to get support at lower rates as demand may appear due to winter season.

Chana Kantewala (Indore):

In Indore market, Chana prices fell by Rs 250-300 at Rs 3,600/100Kg due to lackluster physical trade from millers and traders as demand in chana dal reported negligible, carry over stock, higher rabi chana sowing around 8 % and new domestic arrivals.

Similarly, Australia origin Chana at Mumbai and Mundra port continued to trade lower by Rs 350-400 to Rs 3,500-3,525/100Kg and Rs 3,550 respectively amid sluggish physical buying, weak cues from futures.

As per market sources, around 900 containers of imported chana had not been cleared by importers from the Mumbai port after Government imposes 30% import duty on chana.

The Australian Government had made representations to the Indian Government on the tariffs, but indicated the issue might not be resolved until the end of January at the earliest. Exporters said, the problem is a buyer’s problem and the tariff has been imposed at import point and we already sold the product and the cargo has already been loaded on ships.

At National Commodity and Derivatives Exchange (NCDEX) chana for March contract settled lower by 1.1 per cent or Rs. 42 down at Rs.3,670/100Kgs. Earlier in the day, the contract had slid to Rs.3,651 and touched a high of Rs.3,723 per quintal respectively.

Analysts said the trend is down, Support of 3744 has broken. Expect further decline towards 3680 – 3650 levels or below in coming sessions.

Statewise Rabi Chana Sowing Up 7.9 % As On Jan 17 Vs Same Period Last Yr (LAKH HA). Maharashtra:19.05 Vs 18.40, Rajasthan:15.07 Vs 15.80, Karnataka:13.80 Vs 10.81, Madhya Pradesh:35.90 Vs 32.52, Uttar Pradesh:5.61 Vs 6.43, Telangana:0.96 Vs 1.17, Andhra Pradesh:5.03 Vs 3.66, Haryana:0.53 Vs 0.58. Total:106.23 Vs 98.47.

Australian chana dal priced lower by Rs 300 at Rs 4,500/100 Kg on negligible trade activity. Domestic chana dal of Maharashtra also remained weak at Rs 4,700 and regular chana dal at Rs 4,500/100Kg. Chana besan also offered lower by Rs 100 at Rs 3,000/50Kg. Vatana besan eased by Rs 10 at Rs 1,790/50 Kg. Vatana dal also trades weak by Rs 25 at Rs 3,150.

Kabuli Chana of all counts plunged by Rs 500/100Kg at Indore as buyers refrained to source the commodity at prevailing level, but sellers remained active. Kabuli chana is likely to fall further as supply of new crop from producing belts is expected to gain momentum in coming days. Hence, the buyers were cautious and sourcing as per limited requirements.

Prices of chana unlikely to get any support even at lower rates below MSP as arrivals of new chana expected to gain momentum in near future and also availability of old stocks. The government will have to go for procurement operations in case of chana also to support the prices. The sharp fall in chana prices has caused huge financial loss to farmers and other market participants. Hence, traders plea the Union Government to exempt chana from futures trade.

Imported Masoor (Mumbai):

Canada Crimson and Australia nugget masoor remained weak by Rs 50-100 at Rs 3,450-3,500/100Kg and Rs 3,600-3,700 respectively in Mumbai due to dull millers buying coupled with sufficient stock of domestic and imported masoor. Demand in processed Masoor was reported slack from consumption centers.

Rates of Canada Masoor dal of Bhiwandi mills were offered lower at Rs 4,431/100Kgs, for APMC Vashi market delivery on dull trade activity.

State-wise Rabi Masoor Sowing Up 0.35 % As On Jan 17 Vs Same Period Last Yr (LAKH HA). Madhya Pradesh:5.96 Vs 5.86, Uttar Pradesh:5.97 Vs 6.63, Bihar:2.15 Vs 2.13, West Bengal:1.58 Vs 1.10. Total:17.27 Vs 17.21.

Arrivals of new domestic masoor expected to begin from mid February in Madhya Pradesh. But, farmers will liquidate their stock in bhavantar bhugtan yojna from March 01, 2018.

The recent Bhavantar Yojana of Madhya Pradesh, that offered farmers the difference in the market prices and MSP in their bank accounts, has resulted in a market collapse since farmers brought almost all of their produce into markets in this two-three-month period.

Imported White Pea (Mumbai):

Canada, Ukraine and Russia origin White Pea at Mumbai were eased by Rs 10-20 at Rs 2,721-2,741/100Kgs, 2,671 and Rs 2,631 respectively amid slow millers buying despite no supply pressure from overseas.

However, demand for processed Matar from consumption centers was reported thin despite cheaper prices compare to processed chana.

State-wise Rabi Field Pea Sowing Down 0.3 % As On Jan 17 Vs Same Period Last Yr (LAKH HA). Madhya Pradesh:5.06 Vs 4.84, Uttar Pradesh:4.17 Vs 4.62, Jharkhand:0.57 Vs 0.51, Assam:0.39 Vs 0.33, Chattsigarh:0.53 Vs 0.49. Total:11.85 Vs 11.88.

Vessel M V POLA PACIFIC carrying 29400.024 tonnes of Ukraine Yellow Pea is expected to arrive at Hazira port on January 20.

Moong (Jaipur):

Moong priced lower in Jaipur market by Rs 50 at Rs 4,950/100Kg during the last week on slow demand as per requirement and sufficient availability of stock.

Similarly, Moong dal prices priced unchanged at Rs 6,000-6,100/100Kg.

Vizianagaram (Andhra Pradesh) new chamki moong were traded at Rs 5,300-5,400/100Kg for Kolkata delivery. Cuttack origin old black moong gajar variety traded at Rs 5,050-5,100/100Kg.

New moong of Ganjam and Puri district of Odisha likely to began after Holi festive.

State-wise Rabi Moong Sowing Up 1.58 % As On Jan 17 Vs Same Period Last Yr (LAKH HA). Andhra Pradesh:0.87 Vs 0.71, Tamil Nadu:0.52 Vs 0.53, Odisha:4.12 Vs 4.11. Total:5.77 Vs 5.68.

NAFED Issued Tender To Sale 59524.29 MT Moong- PSS Rabi-2017 lying in State of Madhya Pradesh on 20.01.2018 through nafed.agribazaar.com.

NAFED Issued Tender To Sale 25834.68 MT Moong- PSS Rabi-2017 lying in State of Madhya Pradesh on 20.01.2018 through MSTC Limited.

(By Commoditiescontrol Bureau; +91-22-40015513)