As the Southwest Monsoon continued its impressive run over most parts of India, Pulses seem the biggest gainer. The sowing is already more than the average area grown in the past five Kharif seasons.
Sowing reports from across India's Pulses growing regions have indicated a bumper area under the crop tipping domestic and international prices that have corrected over the last 15 days setting a downward trend in prices. Thanks to a good monsoon, prices of Pulses have come down by 15% across the board.
More than 7% excess Monsoon rainfall received last month has given a boost to sowing of Kharif crops — Rice, Pulses, Oilseed and Sugarcane — and led to increase in water level at 91 large reservoirs across the country.
According to ministry of agriculture data, Kharif sowing so far has surpassed last year’s by over 5%. Significantly, Pulses have been sown in close to 35% more area compared to the previous year’s. Area under Pulses has increased to 12.11 million hectares so far on good Monsoon.
Farmers in Indian state of Maharashtra have increased the area under Urad by 75%. The area under Pulses has increased by 54%, with Urad registered the highest increase. Bumper sowing is expected to bring the more than two-year old boom in prices of Urad.
Indian government expects Pulse production to increase to 20 million tonne in the 2016-17 crop year (July-June) from 16.47 million tonne in the previous year and that would help it to control the high retail prices.
Area under Urad crop in the country as on August 4, 2016 in the current Kharif season has been higher by 28.83% and reached at 2.95 million hectares against 2.29 million hectares a corresponding year-ago period.
Consistent firm trend in Urad prices prompted farmers of India to grow more Urad this season. Meanwhile, between April 10 last year and April 11 this year, the prices jumped by 83.55% for Urad.
Government directed state-run MMTC to import further 30,000 tonnes of Pulses, consisting of 20000 tonnes of Tur and 10000 tonnes of Urad for the buffer stock, which is being sold in the open market at a highly subsidized rates to provide relief to consumers.
The price of whole Urad has declined from Rs.110/kg to Rs.88/kg A further reduction in prices is expected to happen by September. But, it is the retail trade which will influence how far the end consumer benefits by the downward trend in prices. How fast the retailers pass on the reduction in wholesale prices to end consumers will decide the reduction in inflation of Pulses.