Sorghum Prices Poised for a Boost as Crop Dwindles in Rajasthan
Rajasthan’s Sorghum Crop Faces Production Hurdles
Sorghum prices are on the rise, with analyst Darshit Shah forecasting an increase of $0,03 to $0,04 per kg. Reduced jowar production in Rajasthan, particularly in key regions like Nagore, Medta, and Kekri, is driving this price surge.Currently, prices in these areas range from $0,52 to $0,54 per kg, reflecting early supply pressures. Interestingly, while last year’s prices opened higher at $0,57 to $0,60 per kg, the market this year has started lower due to subdued demand for jowar during the early season.
Saurashtra and Tamil Nadu: Regional Prices
In Saurashtra, jowar is trading between $0,48 and $0,51 per kg, but sluggish local demand has kept business quiet. Meanwhile, Tamil Nadu is adding its crop to the market, with prices ranging from $0,47 to $0,49 per kg, creating additional supply competition.This influx of Tamil Nadu’s jowar has helped stabilize prices regionally, even as Rajasthan grapples with lower production. Farmers in Saurashtra's Porbandar and Una-Kodinar lines are shifting to cultivating gram instead of jowar due to last year’s unprofitable prices, which is expected to further impact supply.
Stability in the Short Term, Movement Expected in January
With old stocks still circulating, immediate price increases are expected to remain moderate. However, prices are projected to climb by $0,03 to $0,04 per kg in January as supply tightens further.At present, market arrivals remain low. For instance, Rajkot, Gujarat, has reported daily arrivals of just 200 to 300 bags, while other centers are seeing even smaller volumes. Although new harvests from Rajasthan are anticipated soon, prices are unlikely to drop significantly unless a major surplus emerges.
Stock Levels: Traders Are Waiting for Demand Uptick
Along the Mansa-Vijapur trading line, traders are holding onto modest stock levels, waiting for demand to pick up. For now, the market remains in a stable range, but a surge in demand could push prices upward as supplies dwindle.While a large-scale price rally is unlikely, market watchers expect fluctuations in the weeks ahead, particularly as old stocks diminish and buyers adjust to the evolving supply landscape.
Conclusion: Sorghum Market Prepares for Price Changes
Sorghum prices are rising due to reduced yields in Rajasthan and limited planting elsewhere. Current stability offers a brief respite, but demand and supply constraints may soon drive the market upward..Click here to reach our trading platfrom CMBroker
