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Dhimant Bhatt

Mumbai , March 3

SPOT prices of imported urad in the domestic market have risen by 12 per cent, while futures prices at NCDEX have also moved up by 10 per cent in one week.

The reason behind the sharp rise is that stocks level with traders and stockists was very low, trade sources said.

"The current stocks situation in the open market is hand-to-mouth. Also, there is uncertainty about inflows of imported urad from Myanmar (a major supplier of urad)," a broker in pulses said.

"A few stockists and speculators are driving the market one way by spreading rumours about forward shipments," a local trader said.

Spot prices of imported urad have shot up by around Rs 160 to Rs 1,550 a quintal on Thursday from Rs 1,390 on February 25.

At NCDEX, April contracts prices were up Rs 140 to end at Rs 1,614 a quintal on March 2 from closing rate of Rs 1469 on February 25. Similarly, May contracts were also up Rs 145 to close at Rs 1,679 from closing rate of Rs 1,531 on February 25.

"Demand for urad is good thanks to some season buying but stocks are extremely limited. There is gap of one month for fresh arrivals.

Domestic inflows of new urad are expected to begin in mid-April. Till date, market is moving on imported supplies," a local broker said.

"Fresh demand will continue to remain strong in the next few days but supply is uncertain," he said.

According to market information, about 17,000 tonnes of imported urad were due under settlement/delivery in the February contracts. Of this, physical delivery of about 3,000 tonnes took place. About 14,000 tonnes were unsettled because of low quality.

As per the contract specifications for urad furtures contracts at NCDEX, only current year crop is deliverable against the settlement obligation.

The new crop for the year 2005 is expected to arrive at accredited warehouses of the exchange from the first week of April, which will be available for delivery against contracts expiring the same month, according to Exchange circulars.

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