Agri Business

Supply squeeze, monsoon fears lift tur prices

Vishwanath Kulkarni Bengaluru | Updated on May 14, 2019

Prices of pulses — mainly Tur and Tur dal — are on the rise due to factors such as a supply squeeze, monsoon concerns and increase in consumption.

Tur prices in the major markets of Maharashtra and Karnataka have moved up by about ₹1,000 a quintal over the past month to exceed the minimum support price (MSP) level of ₹5,675. They are currently ruling at ₹5,700-5,900 a quintal.

 

Retail prices of Tur dal are also inching up.

Trade sources attribute the upward trend to buying interest from traders, millers and even consumers. They expect the prices to remain firm in the days ahead, with the progress of the monsoon setting the trend.

However, trade sources said, Tur prices may cool down once NAFED begins the sale of procured pulses. NAFED, which has procured about 2.72 lakh tonne of Tur this season, has currently stopped sales.

Consumption rise

Nitin Kalantri, a trader from Latur, said the consumption of Tur has picked up as vegetable prices are ruling higher this year.

“Vegetable prices are at their highest levels since 2015. As a result, there is shift towards pulses,” he said. Besides, lower output of mango (consumed as aamras with roti) is also aiding the pulse’s consumption trend, he added.

A drought in the producing regions of Maharashtra and Karnataka had shrunk the output during kharif 2018. The production of toor, a kharif crop, stood at 3.68 million tonnes, down from 4.02 mt in the previous year, according to the Agriculture Ministry’s second advance estimates.

Though Tur prices have risen this year, farmers have not benefited as their yields have come down due to the drought, Kalantri said.

Market arrivals down

Market arrivals of Tur have fallen drastically as a large section of farmers have sold their produce. “Kalaburagi is receiving 500-1,000 quintals on an average now, whereas the normal market arrivals should have been 2,000-3,000 quintals at this point,” said Santosh Langar, a dal miller in Kalaburagi.

“Only those farmers who had held back their produce stand to gain. Many farmers have already sold their produce,” said Basavaraj Ingin, President of the Karnataka Tur Growers Association.

Published on May 14, 2019

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