Imports of chana, matar dal and toor dal ensure 15% correction in pulses prices
NEW DELHI: Supplies of chana, matar dal and toor dal from Australia, Canada, Myanmar and Africa have led to a correction in pulses prices in wholesale by 15%.
Pulses brands of Adani and Tata, which have been expanding their presence, will see a correction of 5% by mid-January in retail prices. Harvesting of domestic crops of urad, masur and toor has started across Madhya Pradesh, Maharashtra and Karnataka, which would further help ensure stable prices.
Pulses, a rich source of protein and an integral part of an Indian meal, are consumed daily in India. The country is the largest consumer (18-20 million tonne), producer (15-18 million tonne) and importer (2-3 million tonne) of pulses. Consistent efforts by the government have led to an increase of 2.9% in total pulses production in 2012-13 at 17.6 million tonne compared to the last year.
"Pulses prices will drop and remain weak for the next two months as harvesting progresses in the domestic market," said KC Bhartiya, chairman emeritus, India Pulses and Grain Association.
According to him, the prices of chana dal, which accounts for 50% in the pulses basket, have remained stable and are expected to be in the range ofRs 32-35 a kg in wholesale. Pulses traders said that current prices of chana were ruling below the minimum support price of Rs 3,200 a quintal for the 2013-14 marketing season.
"A further drop in prices will not be beneficial for farmers," said a trader in the Delhi market, who added that he was keenly watching the crop position in Rajasthan and Madhya Pradesh, which will be harvest by March.
Adani Wilmar, which sells pulses under the Jubilee brand, is also likely to make a correction in retail prices by mid- January. "Sentiments are weak in the market and a correction of 2-5% in pulses prices could take place," said Angshu Mallick, COO, Adani Wilmar.
The company sells 200 tonne of pulses a month. Importers have seen a 20% increase in the arrival of toor dal from Malawi, Mozambique and Tanzania this year.
With new vessels from Myanmar hitting Indian ports in the coming days, prices are expected to correct further. The domestic crop has also started coming to mandis across Maharashtra and Karnataka, selling atRs 4,300 a quintal.
"In wholesale, imported African toor dal is being quoted at Rs 5,400-5,500 a quintal and domestic variety atRs 6,500. By January 15, we expect the prices to be stable with a correction of 2-5%," said Vasad-based Mitesh Patel who processes and sells toor dal under the Lakshmi brand.
Source : economictimes.indiatimes.com