Lower arrivals support chana, tur prices outlook

Robust state purchases and tightening supplies keep pulse markets supported amid volatile global trade conditions

Commodity Desk

MUMBAI

Prices of chana and tur are likely to remain firm in the near term due to lower domestic arrivals and concerns over slowing imports, while urad prices may face pressure from fresh crop arrivals, according to the India Pulses and Grains Association.

The pulses body said chana prices are expected to stay range-bound with a firm undertone as arrivals from the domestic crop have slowed. Concerns over tighter imports due to declining import parity, a weak rupee, and elevated shipping costs are also expected to support prices.  Robust government procurement at the minimum support price is further boosting market sentiment. Demand for chana dal and besan remains moderate but is expected to improve after the monsoon onset. 

In Indore, chana prices rose by ₹250 per 100 kg during the week ended Saturday to ₹6,100-6,150 per 100 kg.  Tur prices are also expected to rise as domestic stocks decline and imports remain limited due to higher shipping expenses. 

The IPGA said most of the crop has already been marketed, with remaining stocks largely held by farmers and government agencies.  Expectations of below-normal rainfall due to a possible El Nino and a higher MSP of ₹8,450 per 100 kg are also supporting sentiment.  Urad prices may soften because of increased arrivals of the new summer crop from MP and Gujarat, along with weaker buying interest in key consuming centres. 

—Informist