Bearish trend in pulses seen extending into 2018

There appears to be no respite from poor prices for the pulses growers this year too.

The bearish trend in pulses, witnessed during major part of 2017, is seen extending into the new year as the country heads for a bumper harvest of chana (gram) on rise in rabi acreage. This is even as the market arrivals of tur gains pace amidst muted demand.

The prices of tur are ruling below the minimum support price across major markets in the key growing regions such as Maharashtra and Karnataka among other States. While tur is ruling 20-40 per cent below the MSP level of ₹5,450 per quintal, the market prices of black gram (urad) are hovering up to 50 per cent below the MSP of ₹5,400 in Rajasthan and Karnataka. Moong (greengram) also continues to rule at 10-20 per cent below the MSP of ₹5,575 in various markets.

Procurement of tur has begun in Karnataka recently, where the State has announced a bonus of ₹550 per quintal over the Centre’s MSP.

“The purchases are expected to commence soon in Maharashtra,” said Pasha Patel, Chairman, Maharashtra State Commission for Agriculture and Prices.

Patel expects prices of pulses to remain bearish for some time on higher supplies and farmers are seen bearing the brunt of it. However, the only comforting factor is that the country is heading towards self-sufficiency in pulses and it is a big challenge for the government to ensure MSP for the growers, Patel said.

“The extended rains have pushed up the acreage under chana and we are heading for a bumper crop. The government should incentivise exports of pulses such as tur and chana to make the Indian pulses viable in the international market. Such a move could help stabilise the domestic prices,” Patel said.

While the Centre has recently taken a series of steps such as removal of export curbs on pulses, imposing import duty of 30 per cent on chana and masur among others, Patel said the impact of these measures would be felt over a period of time.

The Centre is targetting a production of 22.9 million tonnes of pulses, almost same as that of last year.

“We want more purchase centres to be opened up as harvest of tur has gained pace and market arrivals have increased,” said Basavaraj Ingin, President, Karnataka Tur Growers’ Association in Gulbarga.

So far, neither the interventions made by the Centre in terms of increasing duties on imports nor the State has helped stabilise the prices, which continue to rule below the MSP levels.

“There are no signs of revival in the market. With an impending bumper crop of chana on rise in rabi acreage, the prices of pulses are likely to remain bearish for most part of the year-ahead,” said Amit Bharadwaj of Level A Commodities.

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