The Hindu Business Line : Gram prices may fall on ample supply, restricted demand

Gram(Dalbar besan quality) prices in the major terminal markets of the northern region (Delhi and Indore) have been ruling at Rs 1,450- Rs 1,500 per quintal on restricted buying interest, largely steady over the past few days.

Futures prices of January and February contracts 2005 at MCX and NCDEX fell marginally by Rs 10-Rs 30 per quintal in the last one month on reports of good crop and expected increase in supply.

"Fresh arrivals in Maharashtra will begin in early-January, and is expected to start by early-February in Madhya Pradesh and Rajasthan. Thus, price may fall by about Rs 100- Rs 200 per quintal at the major terminal markets," a local broker said.

Area covered under gram cultivation in Madhya Pradesh, the largest producer, is likely to increase by 2 per cent over the previous season, trade sources said.

"Overall demand is restricted due to a slack season, despite limited stock of the desi quality. On the other hand, import from Iran, Australia and Turkey is continued. Stockists are the sellers," he said.

Spot prices of imported gram are ruling at Rs 2,300-Rs 2,500 per quintal for Australian small quality, Rs 2,700- Rs 2,900 for Iranian average quality and Rs 3,300-3,500 for Turkey average quality.

The total area under rabi crop 2004 in the country as on December 13 is expected to decrease by 4.5 per cent at 57.62 lakh hectares from 62.2 lakh hectares, which is 90 per cent of the normal sown area, compared with 93 per cent in the previous season, according to the latest report of the crop weather watch group under the Department of Agriculture and Co-operation.

The normal area under gram cultivation is 64 lakh hectares.