Pigeon Pea Prices Poised for Increase

Pigeon pea prices might climb further as mills and market dynamics push up costs. Today, pigeon pea (Tuvar dal) saw a $0,036 increase per kg. Despite a market correction, another rise is expected soon. Additionally, high international prices have made imports pricier.

Agricultural Practices Impact Pigeon Pea Cultivation

Over the last decade, pigeon pea cultivation has declined due to changes in farming practices. As more areas in India become irrigated, farmers have shifted from this long-term crop to cultivating three types of vegetables simultaneously, which offer quicker returns.

Regional Market Trends Influencing Prices

This month, the arrival of new pigeon pea crops in Madhya Pradesh has not been significant. This scarcity has sparked competition among mills for available supplies. Especially for the Chaitua Tuvar Katni pulses, causing prices to rise by $0,084 to $0,09 per kg. A 23 percent reduction in the sown area has compounded these effects.In states like Uttar Pradesh, Bihar, and Jharkhand, the pigeon pea harvest has concluded, and the results have been underwhelming. Sowing areas are rapidly decreasing due to more efficient water use, reducing the pressure to sustain crop presence in markets for extended periods.

International And Domestic Market Scenario

Meanwhile, deals made in Rangoon are facing delays, with fewer shipments reaching Indian ports. In Rangoon, C&F prices have reached $16,08 to $16,20 per tonne, with a delay of at least ten days expected for shipments to arrive in Chennai and Kolkata. This situation is set to push domestic prices up by another $6 per kg soon.Domestically, the strong position of pulse mills and market speculation are driving prices up, with pigeon pea now reaching $1,37 per kg in spot markets, up from $1,24 in the previous fortnight. In Maharashtra, prices range from $1,32 to $1,40 per kg, depending on quality. Conversely, in Akola, Jalgaon, and Budhlada lines, there's less market pressure due to low inward stock.

Limited Stock and Future Projections

In Karnataka’s Gulbarga Kalikothi line, stock shortages mean less pressure from domestic Kharif season goods in local markets. As both new and old crops continue to sell at higher prices, it's becoming costlier for dal mills to produce various types of dal. The current production estimate for pigeon pea, including both Rabi and Kharif seasons, is about 3.4 to 3.5 million metric tonnes. This is down from 4.2 million metric tonnes three years ago and roughly equivalent to last year’s 3.3 million metric tonnes. With old stocks depleted, prices are expected to rise, reflecting corrections and market adjustments.