Peas prices surge on falling output

Import prices of peas are continuously rising after fall in output in exporting countries. The last one month saw a surge of around 14 per cent in the booking prices, which importers feel may go up.

Yellow peas import price jumped to $ 295 a tonne during the period from $ 260 one month back. Similarly, green peas, which was at $ 280, breached the $300 mark and reached $ 325.

"Poor production in Canada, France and America is pushing the prices up. The rates are expected to continue at these levels," said KC Bhartiya, president, Pulses Importers' Association.

Peas are among the heavily imported commodities in India. The country imports around 7-8 lakh tonne annually.

In the domestic market also, spot prices saw a jump in the last fortnight. Yellow peas touched Rs 1,300 a quintal while green peas are being quoted above Rs 1,400 a quintal mark. There are estimation that in Uttar Pradesh (one of the yellow peas producing states), crop is expected to be on the lower side.

According to the traders, there is decline in acreage area, which is resulting in shortfall of crop. In Agra, yellow peas was quoted at Rs 1,450 a quintal on Monday and in Kanpur it was at Rs 1,475 in the physical market. Though the prices have already gone up, traders now expect no big rally in the market.

The crop arrives in the country between November and January. "After January, we do not have much domestic arrival and local requirement is met by imports," said a Mumbai-based pulses importer.

According to him, farmers in Canada and America are not releasing their stocks.

"Government is in the buying spree there. Because of shortage, and next crop expected in September next year, they are apprehensive that the stock may not last and the prices are soaring," he added.

In America alone, green peas output is likely to be short by one lakh tonne.

At these high rates, even traders are reluctant to book fresh orders and feel booking is not workable.

"Out of ten, only three importers, at present, are booking orders as there is a risk factor involved in case the prices in domestic market declines," said SP Goenka, director, U Goenka Sons, a Mumbai-based importing firm.