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    Urad Prices Fall as the Monsoon Increases Crop Area during the Kharif Season

    Urad Prices Fall as the Monsoon Increases Crop Area during the Kharif Season


    Finance Outlook India Team | Wednesday, 10 July 2024

    The prices of black matpe or black gram, also known as urad dal, have begun to fall in the domestic market as monsoon rains increase the area under cultivation during the current Kharif sowing season, according to a Department of Consumer Affairs release. The expectation of normal or above-average rainfall this monsoon season is predicted to boost farmer confidence and result in increased crop output in major urad producing states such as Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, Rajasthan, Tamil Nadu, and Maharashtra.

    As of July 5, the area under cultivation for urad has increased to 537,000 hectares, up from 367,000 hectares during the same period last year. As a result, the 90-day crop is likely to produce well this Kharif season, according to the statement. Even farmers' pre-registration with government organizations such as NAFED and NCCF for selling their crop at or above the Minimum Support Price (MSP) once harvested has gained traction in Kharif season.

    Towards household self-sufficiency. These activities are part of the government's campaign to encourage more farmers to grow pulses during the Kharif season, with the goal of achieving self-sufficiency in this area through increased domestic output. For reference, India imported 4.8% more urad (579,597 tonnes) in 2023 than in calendar year 2022, while overall imports of the three major pulses—masur, tur, and urad—were 2.9 million tonnes (MT) in 2023, up 39.7% from 2 MT the previous year.

    India, which relies on imports to meet its domestic pulse demand of approximately 28 million tonnes per year, predominantly obtains these three pulses from Australia, Canada, Russia, Myanmar, Mozambique, Tanzania, Sudan and Malawi. Despite some progress since 2011, the gap between demand and supply for pulses has widened, necessitating yearly imports of 2.5-3 MT in recent years.

    The agriculture ministry lowered its final forecasts for pulses production downward to 26 MT for the 2022-23 crop year (July-June) from 27.5 MT in May, citing a reduction in production of important pulses such as tur and chana (gram). In the crop year 2021-22 (July-June), the country is expected to produce 27 million tonnes of pulses.

    Furthermore, in the 2023-24 crop year, the country is predicted to produce 3.4 MT of tur compared to 3.34 MT last season, as well as 1.5 MT of urad in Kharif alone vs 1.8 MT the previous season. India produced 2.6 MT of urad throughout the 2022-23 crop year.

    In Madhya Pradesh alone, 8,487 farmers have already registered with NCCF and NAFED for urad dal this season, while other key urad producing states, such as Maharashtra, Tamil Nadu, and Uttar Pradesh, have pre-registered 2,037, 1,611, and 1,663 farmers, respectively. This demonstrates the increased involvement of farmers in these programs.

    NAFED and NCCF are also now procuring the summer urad crop through the Price Support Scheme, according to the official statement. As a result of these activities, wholesale urad prices in the Indore and Delhi markets fell by 3.12% and 1.08% week on week, respectively, on July 6. In accordance with local prices, landed prices for imported urad are falling.



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