Pulses market going in dark, traders are in trouble

Pulses market going in dark, traders are in trouble

The depression in pulses is going dark. Its prices continue to fall consistently. Despite the commencement of the Chana (Chick Peas) futures business, prices are falling. Sowing of pulses crop in the current kharif season and pressure from the buffer stocks of the government. The cheaper pulses of the global market are slimming in the pulses of the domestic market. This is a panic among businessmen and farmers. A few months ago, the price of Tur(Pegion Peas) Dal, which sold for US$3.125 per kg., has dropped to US$1.17 per kg. Since the sowing of Kharif season crops, pulses have fallen by 25%. According to government data, Gram has fallen to US$1.328 per kg in Mumbai retail market, Tur(Pegion Peas) Dal  US$1.17, Black Mapte Dal US$1.50, Green Moong Dal US$1.188 and of Masoor (Red lentils) Dal at US$1.05 per kg.. Prices of pulses are falling constantly throughout the country. In the wholesale market, the average price of gram dal is US$1.0625 per kg., Tur (Pegion Peas) Dal US$0.938, Black Mapte US$1.094, Green moong Dal US$0.94 and the price of Tur(Pegion Peas) further reached US$0.78 per kg.. Businessmen of the fears that prices will continue to fall further in the prices are beginning to worsen. Market prices have broken down in the futures market, because the prices of pulses are not going to increase.

After almost a year, Chana (chick peas) futures trading started again on 14th July, and it was expected that prices will now improve, but in 10 days, it has dropped more than US$0.10 in the futures market. Chana futures started on the first day of trading on NCDEX on 14th July. In the first trading day, there were 17,380 tonnes of gram worth US$14.21 million. Given the interest of traders and commodity traders, the farmers of Chana futures business have the confidence of benefiting, but on 28th July prices have dropped below US$0.75 per kg. Chana is at Rs US$0.745 per kg. in the spot market. This year, there are bumper yields of pulses in the country. The government has also prepared two million tonne buffer stocks. During the year 2016-17, the country has produced 22 million gram. Bumper production of other pulse crops is also produced.

Due to the inexpensive pulses coming from abroad, its prices are continuously declining in the domestic market. As per the market report the  margin of traders has become very thin. By the time the imports do not stop, businessmen and farmers will be upset. Chana, which comes from Australia, is sold at a price of US$0.77 per kg. in the Indian market, while Tur(Pegion Peas), who is coming from Africa, is being sold for US$ US$0.44 to US$0.45 per kg. in the domestic market. The minimum support price of Tur(Pegion Peas) in the country has been fixed by the government at US$0.820 per kg and a bonus of US$0.030 per kg. In this way, the government price becomes US$0.85 per kg. So why would customers buy domestic dal? According to traders, the possibility of improving prices is not seen in view of the record sowing of pulse crops in the current kharif season. In such a situation, it is difficult to stop the stock, which means more loss and loss.

According to the data of Central Agriculture and Farmers Welfare Ministry, till July 28, the total area coverage of pulses in 11.149 million hectares was done in the country, till last year till last year till date 10.744 million hectares of pulses were sown in the country. The total area of pulse crops in the kharif season is 10.558 million hectares. In this way sowing of pulse crops has exceeded the total area. According to government estimates, this year, 8.063 million hectares of area should be sown in pulse crops, but 3.425 million hectare area has more sowing of pulse crops. According to the Ministry of Agriculture, the major Tur(Pegion Peas) sowing has been sown in 3.488 million hectares, Black Mapte (Urad) 3.438 million hectares, Green Moong 2.758 million hectares and 1.804 million hectares of other pulse crops.

Most sown crops have been sown in Rajasthan. Pulses have been sown in 3.147 million hectares so far in Rajasthan, as against 2.295 million hectares of pulses in Rajasthan till last year. In Rajasthan, the normal area of Kharif Pulses is 2.403 million hectares, which means that the area of paddy has increased more than the normal area. In Madhya Pradesh 2.4 million hectares, Maharashtra has 2.030 million hectares and 1.269 million hectare area in Karnataka has been sown in pulses.