Barley prices have declined 12 per cent in a fortnight’s time on drop in global grains prices, higher arrivals and weak demand.
Arrivals at Kota Agricultural Produce Marketing Committee yard in Rajasthan, the top grower, have registered an eight-fold jump during the period.
On Thursday, prices of the bold grain dropped by the maximum permissible limit on the National Commodities and Derivatives Exchange.
Hopes of higher acreage of this rabi crop are also putting pressure on the counter.
October contracts declined by 4 per cent to Rs 1,119 a quintal, while November and December contracts slid by 3.8 per cent each to Rs 1,181 and Rs 1,221.5 respectively.
Restricted offtake by traders, beer and cattle-feed makers depressed the sentiment. Investors added to the trend by booking profits, compounding the bearish trend.
global trend
Globally, the grain counter was under pressure from a fall in wheat and corn prices on the CBOT.
Corn December contracts on CBOT slid to $ 7.56-3/4 a bushel on Wednesday following sluggish demand.
December wheat futures on CBOT ended up 1-1/2 cents at $ 8.73 a bushel after slipping to $ 8.73.
Production of barley is estimated to have declined by 6.50 lakh tonnes from 20.50 lakh tonnes last year.
This is due to fall in the productivity of barley in Rajasthan on poor rainfall during the crop development stage (December- February).
In the spot market at Jaipur (Rajasthan), barley was traded at Rs 1,187.75 a quintal.