Monthly Prices Movement

  • Pulses prices was mostly on positive side in the major markets across the country during the month supported by the good demand on major festival season of the year.
  • Chana price continued the positive trend throughout the month as the arrivals from producing belts and imports have not reached the market. Demand was very high for Chana as it constitutes 40% of the total raw material for Diwali snacks and prices had gone up to Rs 150 per kg during the month.
  • New arrivals were seen in Urad and Moong in the markets but demand due to the festival season supported the prices from downside move.

Ground Report

  • As by the government's first estimate summer sown kharif crop production is forecast to rise 9 percent to a record 135 million tons, which is the biggest gain in Pulses after two years of drought.
  • The rainfall distribution during monsoon season has been fairly well distributed over all parts of the country, leading to 8.6% higher crop-sown area compared to last year.
  • India targets a 50 percent increase in production of Pulses to reach 24 million tonnes through use of hybrid and high-yielding seed varieties by 2020-21 and is aiming to produce 20.75 million tons of Pulses for the crop season 2016-17.
  • India has targeted 13.5 million tons of production of Pulses in upcoming rabi season while the government has estimated 8.7 million tons of Pulses, higher than targets of 7.25 million tons, in the current kharif season.
  • The total consumption of Pulses is estimated around 22.22 million tons in 2016-17 against 22.01 million tons in the corresponding year-ago period.
  • The government recently increased the buffer stock of Pulses to 2 million tons so as to stabilize the prices and encourage farmers to increase the production.
  • India imported Pulses worth Rs 18,000 crore during last fiscal to meet the domestic demand.
  • India's Moong output for 2016-17 was estimated at 35 percent increase over 2015-16 to 1.35 million tons in the first advance estimate by the government. The kharif crop contributes two-thirds of India's annual Moong output.
  • Andhra Pradesh has raised its target of Rabi food grain production by 15.72 percent to 87.6 million tons in 2016-17 against 75.7 million tons last year.
  • Andhra Pradesh has pegged production of Moong in rabi season 2016-17 at 2,05,045 tons, higher by 72% from the output estimated in fourth advance estimates of Rabi crop for last crop season while rise in Chana output has been targeted by 24 percent.
  • Traders of Rajasthan are urging the government to remove stock limits on traders and retailers for holding Pulses.
  • India procured 34546.69 million tonnes (MT) of Pulses (Moong and Urad) as on 25.10.2016 during ongoing kharif marketing season (KMS). So far, FCI has procured 8166.71 MT, NAFED 23510.13 MT and SFAC 2869.85 MT Moong and Urad since the arrival of Kharif crop during ongoing KMS 2016-17.
  • The Government has set up the procurement target of 50,000 MT Kharif Pulses during current kharif marketing season for its buffer stock.
  • India Pulses export for the period April-August of fiscal year (FY) 2016-17 has declined about 36.61 percent to 69870 MT as compared to 95454 MT in the same period of 2015-16, according to data released by The Agricultural and Processed Food Products Export Development Authority (APEDA).
  • India, the world's largest consumer and importer of Chickpea has also decided to import 90,000 tonnes of Chickpeas through the state-owned trading firm MMTC.

Policies

  • India has made a comprehensive action plan to achieve production of 20 million tonnes (MT) Pulses in 2016-17, 21 MT in 2017-18 and 24 MT in 2020-21 as against 16.47 MT production in 2015-16 under the centrally sponsored scheme of National Food Security Mission (NFSM), as per official statement.

  • The agriculture ministry and Indian Council of Agricultural Research has decided to work together on a two-pronged approach of productivity enhancement and increasing production through area expansion for meeting the shortage of Pulses.

  • India will release early maturing Arhar Dal variety in January for commercial cultivation that will help achieve self-sufficiency in pulses over the next three years.

  • India is making a move to raise the minimum support price (MSP) for Pulses of rabi season and bonus for farmers to tackle the price hike of Pulses. The MSP hike is expected to be 5-10 percent for Chana and Masoor.

  • The Commission for Agricultural Costs and Prices (CACP) has recommended the government to sharply increase the minimum support price (MSP) of Pulses up to Rs 475 per quintal for the winter season, with an aim to boost production and to check the price hike.

  • The CACP has suggested a sharp rise in the MSP of Masoor and Chana by up to Rs 475 to Rs 3,800 per quintal respectively for this year. The MSP of Chana was fixed at Rs 3,425 a quintal and that of Masoor at Rs 3,325 a quintal in 2015-16.

  • India government has decided to distribute subsidized Pulses and release more Chana from buffer stock through postal network and through NCDEX (National Commodity & Derivatives Exchange Limited) to ensure the availability of Pulses in the ongoing festive season at subsidized price.

Global

  • Overall Pulses prices are going to be under check with government procuring at MSP and imports taking place. However, Chana prices will remain firm with an anticipated 2.5 million tonnes shortage, post the Rabi crop last year.

  • Prices of Pulses, which led the spike in food prices, are already down, with Tur and Urad selling up to 25% lower than last year due to higher supply and favorable base effect.

  • Expectations of low Pulses prices in the days to come are pegged due to higher supply in the markets and the festival season demand has also come to an end.

  • Moong price unlikely to rise sharply due to expectations of robust production this season followed by continuous flow from overseas market.

  • The price of Chana dal spiked after low acreage and heavy rain took a toll on the production of Chana this year. Delayed imports from Australia and other countries is also keeping the prices high.

  • As the harvest season in India is around January and in Russia is around December, there is hardly any supply of Chana in the market. Chana prices likely to remain lower from existing level in near term as Nafed is selling Chana through tender at low rates but long term outlook is bullish.

  • Good supply from producing states amid better production is likely to keep the prices of Urad under control during the month.

Outlook

  • Overall Pulses prices are going to be under check with government procuring at MSP and imports taking place. However, Chana prices will remain firm with an anticipated 2.5 million tonnes shortage, post the Rabi crop last year.
  • Prices of Pulses, which led the spike in food prices, are already down, with Tur and Urad selling up to 25% lower than last year due to higher supply and favorable base effect.
  • Expectations of low Pulses prices in the days to come are pegged due to higher supply in the markets and the festival season demand has also come to an end.
  • Moong price unlikely to rise sharply due to expectations of robust production this season followed by continuous flow from overseas market.
  • The price of Chana dal spiked after low acreage and heavy rain took a toll on the production of Chana this year. Delayed imports from Australia and other countries is also keeping the prices high.
  • As the harvest season in India is around January and in Russia is around December, there is hardly any supply of Chana in the market. Chana prices likely to remain lower from existing level in near term as Nafed is selling Chana through tender at low rates but long term outlook is bullish.
  • Good supply from producing states amid better production is likely to keep the prices of Urad under control during the month.

image