MUMBAI (Commoditiescontrol) – Indian buyers said to be allegedly defaulted in tur trade from Burma due to steep slump in prices, lackluster domestic demand and bearish outlook ahead due to substantial rise in kharif tur sowing.
According to reports received from unconfirmed sources South India based buyers have defaulted around 700 containers (16,800 tonnes) of tur, which was earlier procured at 90-92/kg in forward shipment. Tur prices in recent weeks has crashed to 74/kg (Mumbai-Lemon), over 18 percent drop from deal price, which has forced buyers to default amid huge loss in the business.
Commoditiescontrol have learnt that such alleged trade has happened, however buyers had settled the deal by paying 12 percent of deal price.
The reason behind the default was attributed to sharp fall in tur prices in the domestic market and bearish outlook ahead due to sharp increase in sowing and good crop in African nations.
Demand in tur dal is very poor here in domestic market, which has forced millers to stay sideline from buying tur.
Further, wholesalers are not interested as well to increase their stocks at present as they had earlier bought tur dal in sufficient quantity anticipating prices would improve in the month of August-September, but since market outlook seems to be bearish ahead, that's why they are releasing their stocks.
Tur prices here in domestic market are likely to be under pressure due to additional availability of 700 container, which is again in hand of shippers and it is expected he might opt to sell his stock at discounted price since outlook in the commodity is not so encouraging.
According to agriculture ministry kharif tur sowing in the country as on July 28 reached at 42.93 lakh hectares against 25.61 lakh hectares a year ago. The area this season is likely to break previous record of 43.77 lakh hectares in 2010-11.
(By Commoditiescontrol Bureau; +91-22-400115533)
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