Market Update/
India’s Pigeon Pea Market, April 16 - 30, 2021


Rahul Chauhan

Contributor

At a glance



This week’s highlights:

  • The Indian Metrological Department is forecasting a normal monsoon, with rainfall of 98% of the long-term average.
  • India has had good monsoon rains for the past three years, but some parts of the country, like Madhya Pradesh, did not receive sufficient rains. This affected pulse production.
  • Last crop year, the production of pigeon pea, gram, lentil, urad and mung was less than expected and a vast difference existed between the official government estimate and traders’ estimates.
  • International pigeon pea prices dropped. Tuar Lemon traded at $800 and Linke at $820. By the weekend those values dropped to $770 and $785 respectively.
  • India’s pigeon pea crop is smaller than expected.
  • In Myanmar, there are fewer inventories this year. Africa will be the main supplier of pigeon peas.
  • The government allocated 6 lakh MT of pigeon pea imports (2 lakh MT for Mozambique and 4 lakh MT for the rest of the world), as well as 4 lakh MT of black matpe and 1.5 lakh MT of mung imports.
  • This year, traders, as well as millers and processors, are being allowed to import pigeon peas.
  • Canada and Australia expect the government will relax import duties on lentils and desi chana.
  • The elections have concluded in five states and the ruling party lost in the main lentil/pigeon pea consuming states. The opposition is gaining strength as pulse prices rise.
  • Consumption has been impacted by the second wave of COVID-19.
  • As of March 31st, the government procured 124,130.84 MT of gram this season. Last year, 2,143,282.28 MT were procured.
  • Government procurement is lower than last year because pulse prices are above MSP.
  • The government may have issues building its pulse buffer stocks. The lower the government inventories, the higher the prices.
  • Some importers have filed a legal challenge against the DGFT’s proposed algorithm-based lottery system to allocate pulse import quotas.
  • The government set a pulse production target of 25 million MT for the next cycle. This amount is equivalent to consumption.

 

Rundown of Indian Markets- Second wave of COVID-19 severely impacts pulse demand and supply chain.

Pigeon pea stocks are limited at ports. Because of the aggressive spread of COVID-19, state-wide lockdowns have been declared and many market yards, stockists and shops are closed. Demand and the supply chain have been disrupted. Weddings, religious functions and similar gatherings have been banned. Hotel, restaurant and catering services are doing minimal business. Consumers are not eating out. Labor shortages are being felt as people have returned to their homes. Consequently, the pulse industry is going through a difficult time. Several states, including Madhya Pradesh, Delhi, Karnataka, Maharashtra, Rajasthan, Kerala, Jharkhand, Chhattisgarh, Bihar, Tamil Nadu, Telangana and Andhra Pradesh have imposed lockdowns and nighttime curfews.

Mumbai Port

Last week, due to decreased demand, pigeon pea lemon prices at Mumbai port fell by $30-35 to $770 per MT and Linke to $785/MT. Spot prices at port slipped by Rs. 100-150 and by the weekend Lemon traded at Rs. 6,550, Arsuh 6,200 ????, Gajri 6100 and Sudan Rs. 6,600/ 100 Kg. Prices at Chennai port also fell to Rs. 6550-6600.

Maharashtra

Half of the market yards with few traders opened shop. Processed dall demand is negligible. Traders buying as per their needs. Prices fell by Rs. 100-150 and traded at Rs. 6700-6950 in Solapur, Rs. 6200-6800 in Jalna, Rs. 6300-6850 in Latur and Rs. 7000-7050 in Akola.

Karnataka

Processed pigeon pea demand fell off. Weekend prices were Rs. 6400-6850 in Gulbarga, Rs. 6162-6683 in Raichur and Rs. 6541-6766 in Talikot.

Uttar Pradesh

Prices dropped on decreased demand from processors. On Friday, pigeon peas traded at Rs. 6600-6700 in Bareilly and were reported at Rs. 6600/100kg in Kanpur.

Others

In Dahod market, pigeon pea prices fell by Rs. 100 and sold at Rs. 5800-6100 by the weekend.

Processed Pigeon Peas / Tuar Dall

Demand was severely affected by the lockdowns and processed pigeon pea prices fell by Rs. 100-300 pan India. Fatka Daal traded at Rs. 9500-10,500 and sawa no. 9000-9500.

 

Government Procurement figures

GRAM RABI 2021 (as of April 14)
State- QTY MT
Andhra Pradesh 5,481.30
Telangana 15,100.90
Maharashtra 85,475
Karnataka 18,720.86
Gujrat 84,961.80
Madhya Pradesh 35,723.76
Rajasthan 3,527.40

Total 2,48,990.97

Masur Lentil Rabi 2021 Procurement till 14.04.21
State-Qty (MT)
Madhya Pradesh 2.6
Total 2.6


Pigeon Pea Procurement by agencies as of April 14
State- Qty (MT)
Karnataka 8,969.05
Maharashtra 1,246.76
Gujrat 554.95
Tamil Nadu 31.95
Andhra Pradesh 184.55
Total 10,987.26

PULSES IMPORT FIGURES

Abbreviations

Tuar/ Arhar: Pigeon Peas PP
Mung: Green Mung
Urad: Black Matpe
Chana: Gram, Desi Chickpea
Matar: Pea
Masur: Lentil
Mandi: Market yard
Bhav: Prices
Dal/Daal: Processed Pulses (Directly for human consumption)
Rs: Indian Rupees (1$= Rs 73.84)

 

Rahul Chauhan
Director, IGrain India
igrainind@gmail.com
+91 9350141815
Twitter igrain_india

 

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