Crop Conditions and Market Arrivals

The arrival of the new moong crop in Karnataka marks a significant event in the agricultural calendar. As farmers in regions such as Gadag and Bagalkot begin harvesting the Kharif 2024 crop, the market trends are set to shift. This report decodes the factors influencing the current moong crop, the implications for exporters, and the broader trends observed in moong cultivation across India.

The initial arrivals of the new moong crop in North Karnataka have shown high moisture content, exceeding 20%. This is attributed to the cloudy weather and intermittent rains. Such conditions affect the quality of the crop and subsequently influence the market. Farmers are hoping for clearer skies and some sunshine to improve the crop quality further.

No Major Crop Damage

So far, the moong crop has been largely free from damage due to excessive rains or pest attacks. This is a positive indicator for the market, suggesting that the overall yield may be higher than in previous years. A miller in Gadag confirmed that the crop condition is good and that timely rains have benefitted the yields.

Karnataka has seen a substantial increase in the area under moong cultivation. Farmers have planted moong on approximately 0.4 million hectares, a 228% increase from the previous year's 0.122 million hectares. The drought conditions that impacted major parts of North Karnataka last year had previously limited the acreage. However, improved weather conditions this year have enabled a significant expansion in moong cultivation.

Comparative Data from Other States

Rajasthan, the largest kharif moong-producing state, has also reported a marginal increase in moong acreage, reaching 2.162 million hectares. Similarly, data from the India Pulses and Grains Association shows that summer moong cultivation is thriving in states like Madhya Pradesh, Gujarat, and Uttar Pradesh. These states have reported robust planting and yield expectations, indicating a strong season for moong across India.

There is a good demand for dry moong, with trade sources reporting active trading in key markets. The modal price, which reflects the rate at which most trades take place, has been substantial. This trend highlights the robust demand for moong and suggests that farmers are likely to receive favourable returns for their produce.

Implications for Exporters

Given the positive crop conditions and increased acreage, exporters can expect a stable supply of moong. However, the high moisture content in early arrivals may necessitate additional processing to meet export quality standards. Ensuring the quality of exports will be critical in maintaining market reputation and meeting international demand.

The increased acreage and favourable market conditions in multiple states suggest a strong supply of moong. Exporters should monitor market trends closely, as the high domestic demand and government support through MSP may influence export volumes and pricing strategies.