Monthly Prices Movement

  • Pulses price witnessed a positive trend in the major markets across the country during the month. Increased festival demand ahead of Diwali and Navaratri has supported the prices.

  • Tight availability of Chana in the country and peak consumption demand period amid festivals has prompted sellers to raise their offer rates during the month.

  • Millers and traders were on sidelines in Urad on expectation of more sharp correction in near future.

Ground Report

  • India Pulses production in kharif 2016-17 is likely to rise 58.18 percent at 8.7 million tons against 5.5 million tons due to bumper sowing and better yield on good monsoon in producing states, according to first advance estimates by ministry of agriculture.

  • Tur production in India is estimated to increase 74.39 percent to 4.29 million tons, Urad is estimated to increase 44.60 percent to 2.01 million tons and Moong production in the country is estimated to increase 32.35 percent to 1.35 million tons, as per ministry data.

  • Pulses acreage in India increased to 14.584 million hectares from 11.293 million hectares, an increase of about 30 percent, as per government data.

  • The government has a target of 20.75 million tons for Pulses production during 2016-17 which includes 14.41 million ton of Pulses output from the rabi season. Rabi or winter season plantings account for close to two thirds of the Pulses produced in the country.

  • Tur acreage increased in India by 0.21 percent to 2.586 million hectares, Urad area increased 25.32 percent from 2.831 million hectares and Moong acreage increased to 3.399 million hectares during the season.

  • Gujarat, Telangana and Maharshtra are the states with most increased Pulses acreage in the season. Gujarat area increased 71.83 percent to 0.732 million, Telangana acreage increased to 0.636 million hectares and Maharashtra acreage increased 41.85 to 2.586 million hectares.

  • India has decided to create 2 million tons of buffer stock of Pulses through domestic procurement and imports for making market intervention in case of price hike. After African countries, Mozambique and Myanmar, Brazil is also planning to grow more Lentils to sell to India.

  • Almost 200 centers have already been set up in Indian Pulse-producing states to facilitate easier procurement and more centers will be added after arrival of Tur crop in October-November.

  • The government agencies, including the Food Corporation of India (FCI), National Agricultural Cooperative Marketing Federation (NACMF) and Small Farmers Agri-Business Consortium (SFAC), have started procurement operations to ensure minimum support price for Pulses after the arrival of the crop in Karnataka, Maharashtra, Madhya Pradesh and Rajasthan.

  • Government has so far procured 3,273 tonnes of Kharif Moong directly from farmers at the support price plus bonus rate to protect the interest of growers. The procured Pulses are kept as buffer stock, which the government aimed at expanding to around 2 million tonnes this year.


  • India government has decided to extend the stock holding limits of Pulses by one year which was ending on September 30, 2016 to check the hoarding and price hike.

  • India government approved a proposal of Rs 18500 crore for increasing the buffer stock of Pulses up to 2 million tons. The buffer stock will be build through procurement and imports of 1 million tons each.

  • Government of India has directed state governments, traders and importers to bring down the wholesale prices of Pulses below Rs 100 a kg this festive season.

  • India is setting up an entity to manage the proposed buffer stock of Pulses. Tenders will be soon invited from state-run and private companies on this regard. The new body will also have to manage storage and disposal of the Pulses buffer stock.

  • In order to increase the Pulses production, the government is likely to increase 5 to 10 percent minimum support price (MSP) for Rabi crops for the 2016-17 season besides a bonus on Pulses in the range of Rs 250 to Rs 425 per quintal.

  • Pulses Committee of India recommended raising MSPs of Urad by 19-20% to Rs 60 a kg for Urad for Kharif 2017. Keeping the bumper production of Pulses, this will bring volatility in the prices in the market and to keep the farmers morale up for better sowing of Pulses in future.

  • Nafed has closed its center at Amravati of Maharashtra to procure Moong because the commodity available there is not as per the procurement norms of the agency. Nafed procures Moong with 12% moisture only while the commodity reaching the market contains high moisture.


  • Agriculture and Agri-Food Canada (AAFC) in September forecast projected Canada Lentil production at 3.263 million due to marginal rise in yield. Lentil output in 2015-16 was 2.541 million tons.

  • Canada’s Lentil seeded area increased by almost 45 percent form 2015-16, with the majority of the increase in red Lentil types.

  • Lentil export forecast of Canada is at 2.2 million tons slightly higher than the last year and carry-out stocks are forecast to rise sharply to 0.4 million tons, as per AAFC.

  • Agriculture Canada estimates 2016-17 Lentil ending stocks at 475,000 tons, decreased from 850,000 in July.

  • South Africa is ready to export 100,000 tons of Tur to India by 2018 to meet the domestic Pulses demand.

  • Chana acreage of Australia during 2016-17 is likely to rise 16.64 percent at 0.822 million hectares compared to 0.661 million hectares in 2015-16 due to higher acreage, as per the agriculture department. Agri department has kept 2015-16 production estimate unchanged at 1.013 million tons.

  • Australia exported around 7.67 tons of Pulses to India during the 2015-16 season, according to commerce ministry of India.


  • Consumption of Chana, Chana dal and besan (chickpea flour) usually remains at peak during September and October as consumption increases due to festivals and the prices are expected to remain firm till end of festival season.

  • Chana seed will be required in large quantity for Rabi sowing, which is also likely to support prices in the coming months. Diwali demand will consume a large stock of existing Chana stock at upper prices. After Diwali, supply of Chana will remain tight up to new season.

  • Large quantities of Chana will be imported from Australia and Russia and domestic crop of Tur, Urad and Moong are harvested which will reach the markets during October and is giving a hope for keeping prices under control.

  • Prices of processed Tur expected to rise compared to raw Tur in near term for limited period around 20-25 days gap amid festive buying due to empty pipeline as retailers and wholesalers were sourcing dals as per their requirement. Further crushing activity is slow due to parity and also rainy season.

  • New Tur crop will start arriving in the markets from November, whereas Urad from October which will pressurize the prices. Crushing activity is slow as well as most of the mills have earlier shut their operations due to huge daily movement in prices at the higher level and government agencies interventions to control Pulses inflation.