Urad Market Faces Limited Supply

Urad prices in India have started rising due to dwindling stock levels in both producer and distributor markets. Pulse millers are running low on inventory, and demand for washed and peeled urad has increased significantly. With traders struggling to secure fresh supply, prices are reflecting the tightening market conditions.

Import and Domestic Supply Trends

Myanmar, a key supplier of urad, has reported price hikes due to reduced availability. The current price for SQ quality urad has risen to USD 0,87 per kg, while FAQ quality urad is now priced at USD 0,78 per kg. This price increase has impacted Indian markets, where import costs have surged, pushing domestic urad prices higher.

In Chennai, urad is currently being sold at USD 0,84 to 0,85 per kg. Meanwhile, market participants note that Indian stocks are nearly exhausted, and traders are relying on limited imported quantities to meet the growing demand.

Speculative Market Trends

The absence of sufficient stock has led to speculative activities in the urad market. Some traders are holding onto existing inventory, expecting further price hikes before the new crop arrives in Myanmar. The previous month's sales indicate that urad prices have seen sharp fluctuations, ranging between USD 0,98 to 1,08 per kg, before stabilizing at current levels.

In addition, the speculative approach of some traders has delayed the release of fresh stock into the market, further fueling price surges. Pulse millers have been forced to purchase imported containers directly from Chennai at increasing costs to maintain their production.

Future Market Expectations

With no major domestic urad arrivals expected before March, prices are likely to remain firm in the short term. Market experts predict that urad prices will remain elevated until the new Myanmar crop enters the supply chain. Given the upcoming seasonal demand, buyers are advised to secure stocks early to avoid paying higher prices in the near future.

Additionally, the upcoming Kharif season will play a crucial role in determining future price movements. If domestic urad production remains low, import dependence will continue to exert upward pressure on prices.

Conclusion: Market Likely to Remain Firm

With no substantial arrivals expected before March and limited stocks available, urad prices are set to stay elevated. Traders and millers must navigate a challenging supply landscape, and buyers should prepare for potential price hikes before the next domestic harvest. Strategic procurement and timely purchases will be key in managing costs and ensuring supply stability.

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