Output slump may jack up urad

Urad prices may see 33 per cent rise in the spot market on the back of lower production because of excessive rainfall in major urad producing states in the country, market sources said.

Though the exact output loss was not yet known, the sources said, the impact was so serious that the usual lowest price range of Rs 1,600-1,800 a quintal could be a far cry.

The new desi urad has started arriving in the Karnataka and Latur mandis, but the prices are currently hovering over Rs 3,600- 3,700 a quintal.

At present, the Karnataka mandis are reporting daily arrivals of 800-1,000 bags (of 100 kg each).

Commodities analysts said as these were new arrivals, urad was selling at premium rates. The market sources said the rates would not slip below Rs 2,400.

This year, Madhya Pradesh reeled under heavy monsoon rains and subsequent floods.

"Urad crop is weak in the state. There could be a decline of 25-30 per cent in production this year. So, the prices will rise," said Rajendra Agarwal, a Satna-based trader.

Incessant rains in the Marathwada and Vidarbha regions (main urad growing belts of Maharashtra) might have damaged the crop, but the increase in acreage in Madhya Pradesh and Karnataka, analysts believe, should offset part of the production loss.

The acreage under urad in Madhya Pradesh and Karnataka has gone up 42 per cent and 105 per cent, respectively, over last year.

Andhra Pradesh, Orissa and Tamil Nadu are the other major urad growing states in country.

"Farmers have shown inclination towards sowing of urad crop because of the prevailing higher prices. Sowing was good, but we have no clear clue to the exact crop damage that excessive rainfall had caused. Had there been not much rainfall, with higher output the prices would have come down to Rs 1,800-2,000 a quintal. But now it seems unlikely," said Rahul Vohra, an Indore-based trader said.

He, however, added, "Areas like Bundelkhand (north of Bhopal) have received optimum rainfall and crop is expected to be good there."

Due to the heavy rains, the crop is already late, and sources said if it did not rain again, the new crop could arrive at the market only by mid-September.

The country produces around 13-15 lakh tonne urad a year, which accounts for 10 per cent of its total pulse output of 120-150 lakh tonne.

This year, the urad production, sources said, was expected to be around 11 lakh tonne against consumption of around 13 lakh tonne.

A part of the total domestic demand for the crop, estimated at 2 lakh tonne, is met through imports, mainly from Myanmar.