MUMBAI, April 08 (Commoditiescontrol):For the week ending April 08, 2023, the market for Burma Urad FAQ variety in Mumbai remained firm. This was due to high demand from mills needing to meet their immediate crushing requirements. Furthermore, the limited supply from Burma and the increased landed cost of Burma-origin Urad also contributed significantly to maintaining an upward trend in the market.
In contrast, the trading of Burma Urad FAQ-SQ variety in Chennai has remained stagnant due to various factors. One reason is the recent directive from the Department of Consumer Affairs to major pulses importers, requiring them to declare all available stocks on a regular basis to maintain transparency. This has made buyers hesitant to purchase for the purpose of stocking and instead opt only to meet their immediate requirements.
Furthermore, the government is expected to regulate pulses prices, and officials have already visited importers' offices to instruct them to update their stock on the portal. This has caused buyers to be wary of stocking up, as they fear the government may conduct stock surveys to ensure compliance with the directive. As a result, there was a lack of movement in the trading of Burma Urad FAQ-SQ variety in Chennai.
The price of Urad dal remained relatively stable, trading at Rs 9,900-10,600/100Kg at the Mumbai market. This can be attributed to the thin offtake.
At the Jalgaon market, the domestic variety of Urad experienced a decline in price ranging from Rs 50-200/100 kg, depending on the quality. This decline was mainly due to inactive buyers who were affected by the recent stock survey conducted by food officers in Maharashtra, along with sluggish demand for Urad dal.
The new rabi Urad crop from the Krishna district also witnessed a decline in price, with rates falling by Rs 250. As a result, the prices for Guntur delivery dropped to Rs 7,550/100 kg, and for Vijaywada delivery, the prices decreased by Rs 200 to reach Rs 7,650/100 kg. Similarly, the Branded Urad Gota variety experienced a decrease in prices, with rates declining by Rs 150-200 to reach Rs 9,900-9,950/100 kg.
The CNF Chennai prices for Burma Urad FAQ and SQ varieties decreased by $5-$15 each, with rates reaching $910/MT and $1010/MT, respectively, at the Yangon market. This decrease can be attributed to the inactivity of both local and Indian buyers. Additionally, it is worth noting that the Burma market will remain closed from April 8th to April 17th, 2023, in observance of the Thingyan Water Festival.
Meanwhile, the Burmese kyat maintained a steady value against the US dollar, with 1 US dollar being equivalent to 2850 Kyat, the same rate as the previous week.
According to the latest update as of April 7th, 2023, the area sown with India Summer Urad has increased by 4.72% compared to last year, reaching 2.44 lakh hectares.
Trend: In the upcoming week, Urad prices are likely to decrease, ranging between Rs 100-200/100 kg. This drop can be attributed to several factors, including buyers' reluctance to purchase following a recent Department of Consumer Affairs directive to disclose their stocks transparently and expected government regulations on pulses prices. As a result, buyers are apprehensive of government stock surveys and hesitant to stock up on Urad. Additionally, during the summer, demand for Urad Dal typically decreases from mid-April, leading to subdued miller buying. Furthermore, the recent arrival of new crops from Andhra Pradesh and Tamil Nadu has increased Urad supply, putting further downward pressure on prices. The higher summer sowing may also contribute to a bearish effect on Urad prices.Despite the anticipated weakness in urad prices, a significant downside is unlikely due to restricted supplies from Burma during the Thingyan Water Festival. Furthermore, the current prices offer little room for further selling in the domestic market. In the upcoming months, the trend of urad prices will primarily rely on the pace of imports and the landed cost of Burmese urad at Indian ports.
(By Commoditiescontrol Bureau; +91-9820130172)
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