Tur prices likely to rise 10% on higher demand

Desi tur prices may see a jump of over 10 per cent on the back of rising demand and falling stocks. The prices today rose to Rs 1,949 a quintal from Rs 1,770 on August 5. Traders expect tur prices to rise further up to Rs 2,200 a quintal before they stabilise.

The prices have already flared up 10 per cent in the spot market during the last fortnight, when the commodity witnessed a surge in its demand, traders said.

"Earlier, there was no demand in the physical market as there were no sellers and buyers. However, since the beginning of this month, the demand for tur has gone up with the festive season ahead," said a Latur-based trader. In that city, desi tur was selling at Rs 2,030 a quintal, on Tuesday.

Another Latur-based trader, Shankar Nadar, said, "Previously, when demand was less, tur was selling at a flat rate of Rs 1,600 a quintal. Almost half our stock was bought at that price range."

He added that the last two weeks have seen a surge in demand mainly from Gujarat, and also Pune, Mumbai and Chennai. "Now the demand and supply situation is tight," Nadar said.

According to traders, the estimated stock of desi tur in Latur is around 2 lakh bags (100 kg each), which, they felt, is low.

The sowing of desi tur (a kharif crop) in June-July was good. It is almost two months now and the crop has not yet received the rainfall it needs, sources said.

"So far there has been less rainfall in the region. But we expect a good rainfall before mid-September which will strengthen the crop," said Raju S Miniyar, an Osmanabad-based trader.

He added that if it does not rain, there could be a decline of 20 per cent in the region's output. In the Osmanabad spot market, desi tur was quoting at Rs 2,030 a quintal, on Tuesday.

According to commodity analysts, a major reason behind the escalation in desi tur prices is the spiralling of chana and urad prices, which gave it the support. The analysts said they did not believe in the reports that there is less availability of tur stocks. The arrivals of new crop will start in December.

While domestic production of tur is around 24 lakh tonne, consumption is approximately 34 lakh tonne. For its unfulfilled consumption demand the country imports from Myanmar and Tanzania.