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Prices of pulses have surged over 10 per cent since the second half of June on deficient monsoon and depreciating rupee.
With monsoon still playing truant in most parts of the country, prices are expected to gain further.
“The rupee has devalued by 20 per cent. We need to import pulses such as gram (chana) this year. This has pushed up prices of gram,” said Mr Pravin Dongre, President, India Pulses and Grains Association.
Gram has witnessed a sharp rise in the last few weeks. For example, gram prices had hovered around Rs 3,950 a quintal until mid-June at the Kareli Agricultural Produce Marketing Committee (APMC) yard in Madhya Pradesh before beginning to rally to Rs 4,488 during last weekend. This week, prices are above Rs 4,600.
“There is an inherent shortage in chana. The area and yield of the crop this year have been lower. We could see the shortage extending till November,” said Mr Dongre.
Imports
Gram is a rabi crop that is harvested in March-April. “Imports will be made but it will take time,” he said.
According to a trading source, importers have to pay in dollars and the volatility is taking its toll.
“Canadian pulses for delivery in September are being quoted at $615 a tonne f.o.b. If transportation and other costs are added, the landed price could be around Rs 45 a kg,” a source said.
Other pulses
On the National Commodities and Derivatives Exchange (NCDEX), gram for September delivery was quoted at Rs 4,750 a quintal on Tuesday, higher by Rs 56 from Monday. Prices in the futures market have increased by Rs 400 since June 15.
A similar pattern is being witnessed in other pulses such as pigeonpea (tur), black gram (urad) and green gram (moong).
“Other pulses are gaining due to deficient monsoon. Once monsoon catches up, things will settle down quickly,” Mr Dongre said.
“There seems to be too much speculation over monsoon. The gains in urad (black gram) has been negligible,” said Mr B. Krishnamurthy, Secretary, Tamil Nadu Pulses Importers Association.
But prices have seen a definite uptrend since mid-June. For example, rates at Ulundurpettai APMC in Tamil Nadu’s Villupuram district have increased from Rs 3,360 a quintal on June 18 to Rs 4,090 on Monday.
One of the reasons pointed out for the rise in black gram is attributed to the hike in minimum support price (MSP) by the Centre to Rs 4,300 from Rs 3,300 a quintal.
“The MSP is only a moral booster and has got nothing to do with the price rise. There is no procurement of pulses in the country,” said Mr Krishnamurthy.
Mr Dongre, too, aired the same view saying that farmers stand to gain nothing since pulses are not procured unlike rice or wheat.
Farmers who have held on to their stocks could gain, Mr Krishnamurthy said.
Since June 1, pigeonpea has gained Rs 600 a quintal to Rs 4,300 in APMCs around growing areas in Maharashtra, while green gram has increased to Rs 4,050 a quintal from around Rs 3,700 in various APMCs of Rajasthan.
Grim situation
A trader, who did not wish to be identified, said that with monsoon being delayed by nearly a month, the situation could turn grim if it turns out to be deficient this month too.
According to the India Meteorological Department, the monsoon is 25 per cent deficient until this week. Besides, weak monsoon poor storage levels in reservoirs is also causing concern.
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