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LATEST NEWS UPDATES | Heavy rains bring down prices of pulses -Jayashree Bhosale

Heavy rains bring down prices of pulses -Jayashree Bhosale

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published Published on Aug 4, 2016   modified Modified on Aug 4, 2016
-The Economic Times

PUNE: Sowing reports from across India's pulses growing regions have indicated a bumper area under the crop tipping domestic and international prices that have corrected over the last 15 days setting a downward trend in prices.

A July 26th forecast by National Australia Bank predicted a fall in chick peas and lentils from their peak of $1,200/tonne to $700/tonne by September 2017.

The report, however, noted that prices of pulses destined for India may remain under pressure in the coming months. "Prices for both (lentils and chick pea) exceeded AUD1,200/tonne this year following two poor Indian monsoon seasons. However, we are already seeing the return of more favourable conditions to India this season, and should the monsoon continue to perform, it is likely that Indian pulse production will be up in the last season. This will diminish demand for Australian chick peas, lentils and field peas and prices will respond accordingly," the report stated, as it forecast Australian chickpea production to go up 33%.

"Thanks to a good monsoon, prices of pulses have come down by 15% across the board," said Bimal Kothari, vice-president, Indian Pulses and Grains Association (IPGA). Nitin Kalantry, a dal miller confirmed the downtrend in prices. The prices of whole beans of pulses, which the millers split to make dals, have come down during the past fortnight.

The price of whole tur has declined from Rs92/kg to Rs75/kg, price of yellow peas came down fromRs35/kg to Rs31/kg, chana corrected from Rs92/kg to Rs80/kg, urad price declined from Rs110/kg to Rs88/kg and moong price is at Rs55/kg, down from Rs70/kg.

A further reduction in prices is expected to happen by September. But, it is the retail trade which will influence how far the end consumer benefits by the downward trend in prices. "How fast the retailers pass on the reduction in wholesale prices to end consumers will decide the reduction in inflation of pulses," said a pulses processor, engaged in contract farming.

India is going to import 25 lakh tonne pulses between September and December, said Kothari. The processor mentioned above said that so much import of pulses is likely to take place in the coming months that the government will have to plan about liquidating its buffer stock of 1.75 lakh tonne right now.

The Economic Times, 4 August, 2016, http://economictimes.indiatimes.com/news/economy/agriculture/heavy-rains-bring-down-prices-of-pulses/articleshow/53533126.cms


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