Pulses futures surge on crop damage fears

INCESSANT RAINS SEND SHIVERS DOWN MARKET SPINE

Pulses futures, led by urad (black matpe), surged drastically on the National Commodity and Derivatives Exchange in the last four days on fears of damage to crops due to heavy rains in states like Maharashtra, Andhra Pradesh and Gujarat, analysts and traders said.

While Urad shot up 5 per cent other varieties of pulses "� lemon tur (2 per cent) and chana (2.5 per cent) "� rose in tandem.

Urad for near month futures today surged to Rs 2,941 a quintal from Rs 2,794 a quintal on Friday, while lemon tur closed upward at Rs 1,533 against Rs 1,508 on Friday. Chana (chick pea) ended the day up at Rs 2,518 compared with Rs 2,456 on Friday.

On Multi Commodity Exchange too, pulses moved up sharply on the rising local market demand and dearth of physical supplies.

Chana continues to attract traders' attention with the festival season ahead. Demand for the crop is rising unabated against inadequate supplies, said a source in commoditiescontrol.com, a city-based commodity portal.

The current rise in prices assumes significance as the local movement of goods has been badly hit by uninterrupted rains in Maharashtra and neighbouring areas, and the imported quantity, market sources say, is not sufficient to meet the rising domestic market demand.

The government ban on exports aiming to increase local supplies proved futile as the physical supplies, given the demand, remained lacklustre. Physical supplies can rise only when the quantity of imported varieties shoots up, a city-based trader said.

"Pulses may set another benchmark if the spate of rains continues for a few days more," another trader said.

Output of pulses is estimated to be lower partly due to drought "� and partly also due to flood "� in south as well as west India.

Andhra Pradesh and Maharashtra contribute nearly 40 per cent of the country's urad production of 1.0-1.2 million tonne.

Floods in two major tur producers "� Gujarat and Maharashtra "� are likely to hit the crop, which is passing through flowering season and requires frequent but slow rains.