News You Can Use
- Monsoon rainfall last week was 35% above what is touted to be normal, helping Kharif sowing to exceed last year’s level in case of Pulses, although the overall sowing level was still 6% lower than a year ago.
- Pulses acreage reported higher by 26.07% at 4.59 million hectares whereas Tur, Urad and Moong sowing has been reported higher by 34.62%, 35.67% and 23.85% respectively.
- Urad prices continued its weakness till mid last week, thereafter prices improved on short covering/profit booking and mild demand in the key importing centers.
- Expectation of damage to the recently sown Urad due to recent very heavy rains over Indian states of Madhya Pradesh and Uttar Pradesh is also seen supporting the sentiment.
- Also there are possibility of re-sowing of Urad is any damage happened as it sowing extends till July end.
- Meanwhile, the demand for Urad is not looking so promising which is putting a cap on rising prices. Thus, overall a range bound movement is likely in Urad prices with slightly firm tone. Absence of demand would lead to weak market.
- As prices of major Pulses skyrocketed, the Indian government decided to set up a committee to re-look at the Minimum Support Price (MSP) and bonus to promote Pulse cultivation.
- The government has decided to increase the size of the Pulse buffer stock to 20 lakh tonnes from the existing 8 lakh tonnes for this year. Already, the government has procured over 1.19 lakh tonnes of Pulses like Tur in the 2016-17 crop year (July-June), which is being given to state governments for retail distribution at a subsidized rate of Rs.120 per kg.
- Further, to cool the prices in the retail market, the importers have also been asked to lift Pulses stock within 45 days from the ports. Earlier, they could lift the stock within 90 days.
India Kharif Urad Sowing As On July 7
Urad (Area in lakh hectare)
Note: Normal: Average Area of Last Five Year Same Week.
Percentage Change Is Derived From Previous Year Vs Current Year.