Market Update/
India’s Mung Market, Februaru 22 - 27, 2021

This week’s highlights:

• For the first time in four years, prices of all pulse crops are near or above MSP. Pulse growers are receiving good prices for their crops.
• There are many factors behind the surge in the pulse market. Due to the tightening of imports, the level of pulse imports is down from January. Low production also added fuel to the fire.
• In Madhya Pradesh, the canal department controls irrigation for summer mung and has not yet cleared the allocated release of water although sowing has begun.
• The government’s advance estimate has this year’s pulse production up from last year, but production may actually be much lower than the government figure.
• When prices are above MSP, there is less government procurement, and this is a big factor keeping prices on the high side throughout the year.

Rundown of Indian Markets- New Rabi arrivals have started; Market unchanged

Mumbai

New arrivals of Rabi Mung started hitting the markets and demand in Rajasthan and Madhya Pradesh has weakened. Demand for processed Mung is seen, with millers purchasing raw product as needed and nothing more. Stockists are in no hurry to liquidate stocks. Rabi season crop is small and new arrivals may not pressure the market. Lat week, the price of Burma Mung at Mumbai Port remained at $1200 per MT. On the other hand, Delhi mung registered a fall of Rs 100 due to sluggish buying by pulses mills. With this decline, the price was Rs 6,700-7,200 per quintal over the weekend.

Madhya Pradesh

Mung selling was normal in Madhya Pradesh. Due to sporadic demand, prices remained unchanged through the weekend at Pipariya Rs. 5,000-6,900, Indore Rs. 7,500-8,000, Harda Rs. 5,000-8,150. 

Rajasthan

Prices fell by Rs. 100 as demand from pulses mills remains cool. At Jodhpur, pulses traded at Rs. 6000-7000, Jaipur Rs. 6600-7400, Sumerpur Rs.  5000-7000 and Kekri Rs. 6200-7000 per quintal (100 Kg).

Maharashtra

Mung prices fell by Rs 100-300 in Maharashtra. With this decline, prices in Akola stood at Rs. 6000-8100, Latur Rs. 4000-7000, Jalna Rs. 3000-6500, Jalgaon Rs. 6500-8100 and Ahmednagar Rs. 4000-8200.

Karnataka

Both demand and selling of mung in Karnataka was weak and prices fell by Rs. 100-200. Over the weekend, mung traded at Rs. 3800-7500 in Gulbarga, Rs. 4393-7150 in Bidar and Rs. 6095-6900 in Gadag. 

Other

No ups and downs were observed in Rajkot (Gujrat). Mung prices were stable and stood at Rs. 6000-8000 per quintal over the weekend. 

Mung dal (Processed Mung)

Demand for mung dal was normal throughout the week. Prices dropped by Rs. 50-100 and processed Mung traded at Rs. 8,400-9,800 per quintal.

STATEWISE RABI SEASON MUNG PROCUREMENT IN 2018

(IN METRIC TONS)

STATE- QUANTITY

GUJRAT 1,310.65

MADHYA PRADESH 2,650.96

KARNATAKA 29,136.74

TAMIL NADU 364.90

TELENGANA 13,375.31

RAJASTHAN 2,36,277. 28

MAHARASHTRA 13,007.73

HARYANA 224.90

TOTAL 2,95,406.03

STATEWISE RABI SEASON MUNG PROCUREMENT IN 2020

(IN METRIC TONS)

STATE- QUANTITY

ODISHA 5,958.58

TAMIL NADU 100.55

TOTAL 6,059.13

STATEWISE RABI SEASON MUNG PROCUREMENT IN 2019

(IN METRIC TONS)

STATE- QUANTITY

TAMIL NADU 5,383

ANDHRA 12,429.05

GUJRAT 2,066.15

ODISHA 6,086.056

TOTAL 25,965.14

STATEWISE KHARIF SEASON MUNG PROCUREMENT IN 2020

(IN METRIC TONS)

STATE- QUANTITY

TAMIL NADU 46.35

HARYANA 1,099.65

MAHARASHTRA 559.74

RAJASTHAN 12,024.46

TOTAL 13,730.19

News Blurbs

Confusion in Madhya Pradesh may affect summer season Mung sowing

In Madhya Pradesh, the summer season Moong crop is being sown. Summer mung is grown in many districts of Madhya Pradesh. Adequate water is available from dams and reservoirs, but there are issues with authorities releasing water to canals. In most places, the harvesting of Gram has started, and farmers began sowing moong. Farmers purchased the seeds and fertilizer, but the irrigation department has yet to allocate water. Summer Mung production depends on irrigation. The summer season is the driest of the year and without water, the Mung crop may suffer.

The irrigation department announced that a decision will be made soon on the basis of water availability. The reservoirs are full, though. Farmers may switch to alternative crops. 

The government is planning to increase buffer stocks of pulses by 15% to 2.3 million tons.

In 2019/20, the central government created a buffer stock of pulses to control prices. In the coming season, the government is planning to increase the buffer to 2-3 million tons, which will be 15% more than in 2020/21.

According to official sources, the government has to control prices and protect the interests of farmers and consumers.

During 2020, NCDEX Chana prices jumped by 34% to a peak level of Rs. 5,600 per quintal.

Domestic production is on the high side and the government may have to procure more from farmers. According to the second advance estimate, total pulse production may reach 24.42 million MT.

Under PSS, government agencies NAFED, FCI, SFAC procure pulses directly from farmers at MSP and these purchases are transferred to the buffer stock.

Presently, prices for all pulses are above MSP. In Madhya Pradesh and other states, procurement of rabi pulses may start on March 15^th.

The government began creating the buffer stock in 2016.

This season, pulse demand may reach 2.5-2.6 million tons. 

Ministry of Agriculture pulse production target at 25.4 lakh MT

The Department of Agriculture, Cooperation & Farmers welfare issued its second advance production estimate for the current season. The figures provided by the government indicate an increase in pulse production.

India’s Agriculture Ministry estimated pulse production at 24.42 million MT for 2020/21, including both Kharif and Rabi seasons.

This is more than 1.5 million MT above last year’s production, but shy of the government’s target of 25.36 million MT.

Pigeon pea production is estimated at 3.89 million MT. Gram production this year may hit 11.62 million MT, up from 11.08 million MT last season.

Lentil production may also increase from 1.1 million MT to 1.35 million MT.

Mung production is estimated to increase from 2.5 to 2.6 million MT. Urad production is also expected to increase to 2.45 million MT.

The production of other pulses, such as Kulthi, Khesari, Pea, is not included in these figures.

Urad production totaled 1.33 million MT this kharif season compared to 1.77 million MT the previous kharif season, and is expected to total 0.68 million MT this rabi season compared to 0.7 million MT the previous rabi season.

Similarly, Mung production is expected to increase from 1.8 to 2 million MT. 

Total pulse production was 27.08 million MT in 2017/18, 25.42 million MT in 2017/18 and 16.32 million MT in 2015/16.

PULSE PRODUCTION OVER THE LAST 10 YEARS: DEPARTMENT OF AGRICULTURE, COOPERATION & FAMERS WELFARE

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 73.36 )

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