Tur prices rule below MSP as arrivals rise

Tur (arhar/pigeon pea) prices have turned bearish as farmers have started bringing the new crop to the markets in States such as Karnataka and Maharashtra.

Despite the crop suffering losses due to excess rains this year, prices of tur, the major kharif pulses crop, are expected to stay bearish on muted demand and the extension of restriction-free imports till June 2022.

In Karnataka’s Kalaburgi market — the major tur producing region in the South — prices have started softening over the past week as the new crop has hit the markets. The modal prices or the rate at which most trades take place in Kalaburgi is trending lower than the minimum support price (MSP) of ₹6,300 per quintal.

Prices have come down by seven per cent over the past week after the government, on December 21, announced the extension of restrictions free imports till June 2022. In markets such as Solapur, Osmanabad and Latur, prices are hovering between ₹5,300 and ₹5,600 per quintal.

Procurement operations

Basavaraj Ingin, President of the Karnataka Pradesh Red Gram Growers Association in Kalaburgi, said the government agencies should expedite the process of public procurement as arrivals have already begun and prices have dropped below MSP.

Small and marginal growers, who normally bring their produce to the markets immediately after the harvest, are likely to lose out if the procurement process is not started at the earliest, he said.

It is reported that Nafed is likely to procure around 8 lakh tonnes of tur this kharif marketing season. According to the first advance estimates for 2021-22 season, the Government had pegged the tur crop at 4.43 million tonnes, higher than the previous year’s 4.28 million tonnes. Excess monsoon and post-monsoon rains are seen damaging this year’s crop by at least 20 per cent, trade sources said.

“Prices may stabilise a bit once Nafed starts procurement, but the overall trend is likely to remain bearish on ample supplies,” said Rahul Chauhan of IGrain India. As arrivals are set to pick up by mid-January, the poor quality tur is also likely to hit the markets. Like in the case of rain-damaged wheat and paddy, the government should also relax the conditions to procure the rain-damaged tur, Chauhan said.

Bearish outlook

Suresh Agrawal, President, All India Dal Mills Association, said the tur prices are unlikely to rise in the near term as the demand is muted and imports from Africa are on the way.

“The arrivals of new crop has started in Maharashtra and Karnataka. Traders and millers are trying to liquidate their old stocks to make way for the new crop,” Agrawal said.

Santosh Langar, a miller and trader in Kalaburgi, said the top quality tur is hovering around ₹6,000-6,100 per quintal.

In other markets of Karnataka, prices are hovering from ₹4,000-5,700 depending on the quality and moisture content of the produce.