Ban on exports hits pulse prices

Tags fall 4% in spot, futures markets.

Following the Centre's ban on exports, prices of pulses declined about 4 per cent in the domestic spot and futures markets. On MCX, the July and August masur contracts declined 3.99 per cent and 3.59 per cent to close at Rs 1,856 and Rs 1,967 a quintal, respectively.

Similarly, chana "" the most volatile pulse variety "" for the July, August and September contracts slumped 3.98 per cent, 4.01 per cent and 3.67 per cent to close at Rs 2,562, Rs 2,642 and Rs 2,695, respectively.

The July tur futures too fell in tandem by 3.86 per cent to end Thursday's trade at Rs 1,709 a quintal. However, for urad, the July and September contracts lost only 2.07 per cent and 1.35 per cent to Rs 3,002 and Rs 2,732 a quintal, respectively. And in contrast, the August contract gained a meagre 0.60 per cent to Rs 2,828.

The government ban on exports affected the pulses futures on National Commodity & Derivatives Exchange on similar scales.

Prices of sugar fell marginally by 1.5 per cent in the spot and futures markets to close at Rs 1,922 (July), Rs 1,954 (August) and Rs 1,970 a quintal (September) of sugar M and Rs 1,892 of sugar S July contracts on MCX.

In the spot Vashi (Mumbai) market, sugar on Thursday fell by Rs 10. S30 on Thursday closed at Rs 1,745-1,755 (mill delivery) and Rs 1,820-1,830 (naka delivery). Similarly, M30 ended the day at Rs 1,770-1,780 for mill delivery and Rs 1,850-1,870 for naka delivery.

"Only time will tell the real impact (of this government's move to control the prices) on the physical and futures markets," said Ashok Jain, secretary, Bombay Sugar Merchants' Association.

Vashi sugar trader Rajendra Shah said,"Sugar prices will go up in the near future as the domestic price is lower than import prices. At present, the domestic prices are ranging between Rs 1,750 and Rs 1,850 a quintal and import prices are above Rs 1,900 a quintal."

Wheat was the other loser on Thursday, consequent upon the government's import permission to private players. Wheat futures on comexes fell around 1.5 per cent to close at Rs 886.40, Rs 912.50, Rs 932.60 and Rs 950 a quintal for the July, August, September and October futures, respectively.

In the spot market, wheat fell in the Rs 10-20 a quintal range in Mumbai, but it perked up in the same range in rest of the country's mandis. In MP, wheat gained Rs 20 on enquiries from south.