Buying Interest in Urad Picks Up at Lower Levels; Prices Expected to Rise Until New Crop Arrives
25-Aug-2026 11:58 AM
New Delhi. Following a slowdown in domestic market arrivals, active buying by pulse mills and stockists has resumed at lower price levels. Consequently, Urad prices have seen an uptick of approximately ₹200 per quintal. Given the current supply situation, there is potential for a further price rise of ₹400–500 per quintal before the new crop hits the market.
Tight Supplies Due to Reduced Arrivals
This year, Urad sowing in Madhya Pradesh and Maharashtra was delayed by about 15–20 days compared to the norm. Sowing was affected in several regions due to a weak monsoon, an impact now clearly visible in market availability. Arrivals of the old crop have virtually ceased in most domestic Urad markets, keeping the market pipeline lean.
Urad Prices Firm Up in Burma Too
Last week, prices for FAQ Urad in the Burma market had dipped to around $835 per tonne, while SQ prices stood at $915 per tonne. However, increased demand this week has led to a rise of approximately $20 per tonne for both varieties; FAQ Urad has climbed to around $855 per tonne, and SQ to $935 per tonne. This strengthening in the international market serves as a positive signal for the Indian market as well.
Market Supported by Chennai
The price decline in Chennai, caused by a shortage of ready stock, now appears to be stabilizing. With selling pressure easing and strong buying from pulse mills early in the week, prices for bold-grain Urad rose by about ₹200 per quintal to reach ₹9,200 per quintal, while quotes for small-grain varieties reached around ₹8,600 per quintal. These trends indicate increased buyer activity at lower price points and a strengthening demand base in the market.
Weather Outlook for the New Crop
Arrivals of the new Urad crop are expected to commence in the last week of September. However, weather conditions will remain the biggest risk factor for the market in the interim. Production estimates are not yet fully clear due to delayed sowing and persistent weather fluctuations. Meanwhile, supplies from Rangoon are not exerting significant downward pressure on prices, owing to limited stocks and controlled selling by exporters. Consequently, availability in the domestic market is likely to remain constrained until the arrival of the new crop.
Market Outlook
Strong buying by pulse mills and stockists at lower price levels is providing support to the market.
Supplies remain tight as the arrival of old-crop Urad in domestic markets has nearly ceased.
It will take approximately another month for the new crop to arrive.
Prices of imported Urad are also finding support from the recovery in rates within the Burma market.
Given the current circumstances, the possibility of a price rise of ₹400–500 per quintal before the arrival of the new crop cannot be ruled out.