Urad Prices Rise Sharply as Crop Damage

Urad (black gram) prices are on the rise as significant crop damage in Tamil Nadu, Andhra Pradesh, and Karnataka disrupts supplies. Traders predict prices will remain firm until new stocks arrive from Myanmar, as the market grapples with tight fundamentals.

Severe Crop Losses in Tamil Nadu and Andhra Pradesh

Unrelenting rains and floods caused by Cyclone Fengal have wreaked havoc on urad crops in Tamil Nadu. Adding to the challenges, Andhra Pradesh’s crop has been hit hard by a yellow mosaic virus outbreak.

“Villupuram in Tamil Nadu has seen near-total crop failure, and the outlook from Ongole in Andhra Pradesh isn’t much better,” shared B. Krishnamurthy, Managing Director of Chennai-based Four P International.

Karnataka Faces Rainfall Issues

In Karnataka’s northeastern regions, persistent rains during the harvest season left farmers struggling with poor-quality yields. “It rained non-stop for nearly a month. Most farmers were able to salvage only about 20% of their expected crop,” said Basavaraj Ingin, President of the Karnataka Pradesh Red Gram Growers Association. Moong crops also faced challenges, but the damage wasn’t as extensive as that of urad.

Declining Acreage and Output

The kharif season saw urad cultivation drop to 3 million hectares, down from 3.26 million hectares last year. While some states like Karnataka, Maharashtra, and Uttar Pradesh reported increased planting, this was offset by declines in Madhya Pradesh, Odisha, and Rajasthan.

The reduced acreage, coupled with bad weather, has slashed production by 25%, with estimates pegging output at just 1.2 million tonnes, compared to 1.6 million tonnes last year.

Price Surge in Domestic and Global Markets

Domestic urad prices have jumped from USD 0,98 per kg to USD 1,07 per kg in the past month. Globally, Myanmar has raised its export prices for urad to USD 1,09-1,11 per kg, reflecting strong demand from India and Pakistan.

Telangana’s urad crop is showing promise, with an expected yield of 60,000 tonnes, which could ease the supply crunch. Myanmar, one of India’s primary suppliers, is also expecting a strong harvest of around 1 million tonnes. Arrivals from Myanmar, expected in February or March, and the Indian rabi crop in April could help stabilize prices.

Rising Imports from Brazil and Russia

India is increasingly looking to imports to meet its urad demand. Brazil has already exported 50,000 tonnes this year and is set to boost shipments to 150,000 tonnes next year. Russia is also exploring the possibility of exporting urad to India. Alongside its ongoing shipments of yellow peas and green lentils.

Supply Shortfall Looms

India’s monthly urad requirement stands at 250,000 tonnes, translating to an annual demand of 2.5 million tonnes. Current supplies, however, are estimated at just over 1.6 million tonnes, leaving a substantial shortfall. With domestic crops falling short, imports from Myanmar, Brazil, and Russia will play a critical role in bridging the gap until the next kharif harvest arrives in October.





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