After two years, the price of tur (pigeon pea) is trading above the central government's minimum support price (MSP).
The latter is now Rs 5,675 to Rs 5,900 a quintal. Prices are expected to touch Rs 6,500-7,000, say industry representatives.
7 per cent.
Maharastra, Karnataka and Gujarat are the major producers of tur. Drought last year and this year in many growing regions had hit the output. The estimate for the 2018-19 kharif was for a drop of 298,000 tonnes to 3.7 million tonnes (mt). This year, the all-India output could be lower by up to one mt. So, stockists and wholesalers are holding on to it, in anticipation of a further rise in prices. Daily arrivals in the key markets have fallen to a combined 1,500-3,000 bags this month, from 8,000-12,000 bags at this time a year before.
India's annual consumption demand is 4.2-4.5 mt, excluding stock in hand with traders. The supply-demand mismatch is expected to mean a further rise in prices. The Centre has allowed import of 200,000 tonnes in the current financial year but Bimal Kothari, vice-chairman of the Indian Pulses and Grains Association, says there is a shortage in the global market, too.
An office bearer with the Karnataka Tur Growers Association said supply will continue to be under pressure, which will push the prices further to at least Rs 6,500-7000. Agrees of Anuj Gupta, deputy vice-president of commodity research at Angel Broking. He adds, "Prices increased above the minimum support price (MSP) level of Rs 5,675 and Government allowing imports of Tur as the production is good globally. While this may not bring down the price significantly, it may soften the prices."