Unseasonal rains dampen masur prospects

MR Subramani Updated - March 04, 2014 at 09:00 PM.

Cold snap in Canada pushes prices of the lentil higher

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A combination of cold weather and untimely rains has affected masur (lentil) crop during the current rabi season.

As a result, prices have increased in the last few weeks and they could tend to rule firm at least until the weather clears in Canada, a major exporter of the commodity.

Traders say that lentil production is down by at least 15 per cent this year. Lentil is treated as “other pulses”.

According to the Agriculture Ministry, production of “other pulses will be up at 3.87 mt this year against 3.40 mt last year.”

“The masur crop has been damaged by rains in Uttar Pradesh and Madhya Pradesh. There could be a 15-17 per cent decline in production,” said Pravin Dongre, Chairman of India Pulses and Grains Association.

Prices may rise

“Masur prices could rise sharply since the carryover stocks have also been less,” he told Business Line much before a pulses trade meet at Goa in the third week of February.

“Rains in Uttar Pradesh in particular have caused heavy damage to masur crop. There are more problems due to cold weather too,” said Mukesh Sodhia, a trader.

Masur is a small crop which is sensitive to weather developments.

Though its consumption is lower compared to other pulses, domestic production, too, is low.

“So far, there is no clear picture on the crop loss due to weather changes,” said Prakash Vora, a trader in Indore.

An unclear scenario has led to rise in masur prices by ₹250 a quintal last week.

Currently, masur is ruling at ₹3,850 at Mandsaur in Madhya Pradesh with quality produce commanding nearly ₹4,250. During the same period last year, prices ruled at ₹3,000 a quintal.

Canadian imports

“More problems seem to be on cards since Canada, a major supplier, is unable to move farm products due to cold snap in North America,” said Sodhia.

As a result, imported masur has become dearer at over $650 from $600 a couple of weeks ago.

Cold weather and snow in Canada has affected movement of rail cars with more priority for energy products. Also, rail companies are running services only on short routes since there are problems with air brakes as gaskets tend to contract due to cold wave.

“Canada has plenty of masur to supply but the weather must clear first. Then, it could take at least 45 days for shipments to reach Indian shores,” said an importer.

Until then, prices are likely to rule firm.

Output estimates

Though the Ministry of Agriculture has projected a higher production of pulses this season to June, there are concerns over black matpe (urad) and masur.

In its second advance estimates, the Ministry projected this year’s pulses output at 15.45 million tonnes (mt) against 14.94 mt.

Production of gram (chana) is seen at a record 9.79 mt against 8.83 mt last year, riding on a record acreage of over 100 lakh hectares.

Black matpe output is seen down at 1.59 mt against 1.90 mt.

Pulses trade is questioning the Ministry’s projection of chana production, pointing out to effect of cold weather and rain on the crop.

It is also sceptical about estimates of a record acreage of the crop.

Published on March 4, 2014 15:30