Monthly Prices Movement
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.
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.