The Hindu Business Line : Urad prices gain on crop damage in Andhra, TN

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Urad prices gain on crop damage in Andhra, TN

Untimely rains, diversion to maize cited as reasons

Rains play spoilt sport
In Andhra Pradesh, the rabi output is likely to be around 1.8 lakh tonnes.
In Tamil Nadu, going by the acreage, the farmers would be lucky if they can harvest a total of around 40,000 tonnes.

M.R. Subramani

Chennai, March 30

Damage to crops in Andhra Pradesh and Tamil Nadu has resulted in prices of black matpe (urad) gaining in the last few days.

The pulses prices are likely to rule firm in April but may ease a bit during May before continuing its journey north in June.

“Untimely rains during February-end early-March have damaged the urad crop in Andhra Pradesh. Also, in that State, some areas under pulses have been diverted to maize due to the latter’s better price realisation. This has given rise to fears that the crop may be less than last year,” said Mr P. Krishnamurthy of South India Pulses Importers’ Association.

Unusual rains

The bullish sentiment has got further boost with rains during the last two weeks wrecking havoc in Chidambaram and Thanjavur areas in Tamil Nadu. “It has been an unusual phenomenon of such heavy rains in Tamil Nadu during this part of the year. The rainfall was heavy and fears are that it has heavily damaged almost all crops,” says a Chennai-based analyst.

According to Mr Krishnamurthy, “Not less than 50 per cent of the crop has been feared damaged in Tamil Nadu. The problem is that farmers in Tamil Nadu this time had gone in for increased coverage of the crop”.

Andhra Pradesh’s rabi urad was expected to be around 2.5 lakh tonnes. However, in view of the damage, it is now likely to be around 1.8 lakh tonnes. In Tamil Nadu, going by the acreage, the production was expected to be around 75,000 tonnes. Again, in view of the rains, the farmers would be lucky if they can harvest a total of around 40,000 tonnes, according to Mr Krishnamurthy.

Prices have not increased sharply since the States in the North are carrying the kharif stocks. “Northern States are not buying now in view of the stocks they are carrying. However, they could be in the market during the second half of April. That is when the prices could tend to look up,” Mr Krishnamurthy said.

Urad consumption in the North is on the rise as it is being used in dal makhni and pappads.

Crop situation

On the other hand, the situation in the global market is also grim. Myanmar, a significant player in the global pulses market, is likely to have a lower urad crop this year.

“Last year, they had a bumper crop. This time, it would not match those levels,” said Mr Krishnamurthy, who recently visited Myanmar.

Meanwhile, a tender floated by MMTC for import of 60,000 tonnes pulses, including urad, last week has heated up the market, the Chennai-based analyst said. “Frequent floating of tenders by the Government is keeping the market firm,” he said.

Currently, superior quality urad is quoted around Rs 2,850-2,900 a quintal, while the fair average quality is ruling around Rs 2,425-2,475.

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