Weak demand pushes pulses futures past circuit

Several pulses contracts fell steeply, past the first circuit of 4 per cent on Friday on the National Commodity and Derivatives Exchange because of weak demand and a current lull in monsoon. Also, big deliveries from Myanmar is expected to significantly increase supply.

The lull in the rainfall was worrying, leading to some questioning the forecast of slightly below normal rainfall.

"Uncertainty over prospects of the monsoon has made spot traders overcautious in building up new positions," said S Kishore, a Mumbai-based importer.

"This trend was reflected in lower volume of chana. Although urad and tur futures volume rose, yet it was considered very low compared to the norm during monsoon months," he said.

Puneet Jain, from Delhi's Oswal Traders said supply would rise in the coming weeks following duty exemption on imported pulses announced on Thursday.

Fall in tur (pigeon pea) and urad (black matpe) invited as many as five circuit-breakers, including one each for June and July contracts of tur and one each for June, July and August urad contract.

Meanwhile, customs officials in Mumbai refused duty exemption to pulses imported in containers. Jawaharlal Nehru Port customs also refused the exemption, claiming ignorance about the exemption announcement.

K C Bhartiya, president of the Pulses Importers Association, sought intervention of the finance ministry.

A ministry official said the exemption notification didn't specify how the pulses should be imported.