Week Ahead: Tur Prices Expected to Remain Steady Despite Government Intervention

MUMBAI, April 10th (Commoditiescontrol): During the week ending April 8th, 2023, the price of Tur from Burma and Africa surged due to heightened demand from millers for crushing purposes. Conversely, sellers were inactive at lower rates due to a slowdown in domestic arrivals, a lower supply from overseas, and higher landed costs for imported Burma and Sudan Tur.

However, the market sentiment remained under pressure as government officials visited importer offices in Chennai, directing them to update their stock on the Chennai portal. Furthermore, food supply officers surveyed Tur stock at select markets in Maharashtra and Karnataka, following the government's directive to secure exact warehouse stock through various nodal agencies and departments, including FSSAI, APMC, Warehouse, GST, and Ports. At the Akola market, desi Tur rose by Rs 50 In Bilty trade, closing the week at Rs 8,750-8,775/100Kg. This was driven by increased buying demand from local and outstation mills for crushing and minimal arrivals. Whereas supply was negligible as domestic markets were closed for festivals. However, in Gulbarga's mandi trade, the price of Tur declined by Rs 100, settling at Rs 8,200-8,400/100Kg, as buyers exercised caution following government intervention and a lack of offtake in Tur dal. The prices of domestically processed Tur dal made from the new crop Tur in Akola and Katni remained unchanged due to limited offtake. In contrast, prices in Gulbarga decreased by Rs 200-300 per 100kg due to cautious trading. Furthermore, prices of Tur dal made from Burma, Sudan, and Mozambique origin Tur decreased by Rs 100/100Kg due to a thin offtake, despite being discounted compared to domestic Tur dal.

The prices of Mozambique Tur Gajri increased by Rs 50 to reach Rs 6,800/100Kg due to mill purchases and limited stock availability during the week. Meanwhile, the Mozambique Tur white variety remained unchanged at Rs 6,950. The price of Malawi Tur also rose by Rs 50, reaching Rs 6,700/100 kg, and the Mozambique/Malawi zebra variety was traded up by Rs 50 at Rs 6,750. The new Tur from Sudan also saw an increase of Rs 100, now being traded at Rs 8,450.


Based on reports from Burma traders, Tur stockiest were reluctant to sell at lower rates as the current stock is in the hands of strong buyers. Additionally, there will be limited market activity as the Burma market will remain closed from April 8th to 17th, 2023, in observance of the Thingyan Water Festival. The Tur Lemon variety was marginally up by $10 and was quoted at $1,035 per tonne CNF Chennai. The exchange rate between the Burmese kyat and the US dollar remained stable at 2,850 Kyat/dollar, unchanged from the previous week.

Despite repeated directives from the government, the latest reported stock as of March 28th showed little to no increase from the previously reported stock on January 2nd. This suggests that most stock held by market participants has already been recorded.



Trend: Despite the efforts of the government to intervene, the Tur market will likely remain stable in the upcoming week. The Tur prices are expected to stay steady due to various factors such as reduced domestic production, declining domestic arrivals, shortage of supply from overseas, and higher landed costs for imported Tur from countries like Burma and Sudan. According to government data, the current Tur stock is approximately 13 lakh tonnes, and the expected overseas supply of around two and a half lakh tonnes is projected to come from Burma. The next significant supply expected in the market is from Africa around September/October. Due to this, the current supplies are inadequate to meet the demand until September, which may increase Tur prices from the current level despite the government's efforts.
(By Commoditiescontrol Bureau: 09820130172)