Pulses, oilseed prices rise as rain deficit hits crops

Pune: Prices of key pulses like tur and chana and oilseeds such as soyabean and groundnut have increased sharply compared with last year, as scanty rains started affecting standing kharif crop and increased concerns about output in the upcoming rabi season.

Wholesale prices of tur have increased by more than 30% compared with this time last year, while chana has become costlier by 11%. Prices of soyabean have jumped by more than 40% and groundnut by 50%, show data from industry bodies Indian Pulses and Grains Association and Solvent Extractors' Association.

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"The prices are ruling firm as there is a concern about the condition of tur crop in Karnataka and adjoining parts of Maharashtra where the moisture stress has increased in recent weeks. However, the prices are still only moderately higher than the minimum support price levels," said Rupesh Rathi, executive member of the All India Dal Millers Association.

Karnataka, Maharashtra and Madhya Pradesh are the main producers of tur and chana, while Maharashtra and Madhya Pradesh are the top two in soyabean production. Karnataka has already declared drought in about 100 taluks, while several districts in Maharashtra's Marathwada have recorded a cumulative rainfall deficit of 36%.

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Nitin Kalantri, a processor of pulses from Latur, one of the prominent hubs of the pulses industry and known for premium-quality tur, agreed that the weather concerns were weighing on the prices. "Along with the gap in rainfall, the increasing intensity of heat can affect the yield of the crops. The concerns about production will increase if the break in rainfall widens," said Kalantri.

Prices of chana, the most consumed pulse of India that will be sown in the upcoming rabi season, have been firming up due to forecasts indicating strengthening of the drought-causing El Nino climate pattern, as the level of soil moisture is important for rabi crops. Government agency Nafed, which began selling chana from its stocks at ₹60 a kg about two and a half months ago, recently sold it at ₹66.

The chana crop of Australia, the most important import origin for India, is expected to be 40-50% lower than last year. Despite the concerns about crop output, industry veterans said the supply situation was not worrisome. In the case of tur, government and private trade has good carry-forward stock from last season, while about 0.7-0.8 million tonnes of tur is expected to be imported from Africa.