Limited Price Fluctuations Expected for Urad Due to Adequate Supply

Mumbai: With ample stocks available and a largely balanced supply-demand scenario, domestic market prices for Urad (black gram) are expected to remain within a specific range with limited fluctuations in the near future. However, if prices rise in exporting countries (Myanmar, Brazil) or the Indian Rupee depreciates, the cost of importing Urad could increase, potentially leading to a rise in prices.

According to the apex trade body, the India Pulses and Grains Association, the supply outlook for Urad appears comfortable. Adequate imports from Myanmar and Brazil are making it possible to easily meet the rising domestic demand and consumption. Arrivals of the new Kharif-season Urad crop in the domestic market are likely to pick up pace next month. Concerns regarding the Urad crop persist due to less-than-ideal monsoon and weather conditions, suggesting that prices may remain relatively stable.

Notably, imports of premium-quality Urad from Myanmar are currently limited because the economics do not work out favorably for the Indian market. However, significant quantities of Urad were imported from Brazil during August and September. Consignments from Brazil, comprising approximately 3,000 full containers, are expected to arrive at Indian ports in October; shipments that were previously delayed are also due to arrive soon.

Meanwhile, Myanmar still holds an old stock of 3.50–4.00 lakh tonnes of Urad, with an FOB (Free On Board) export offer price reported at $940–$950 per tonne. However, there is a need to sell this stock quickly to clear storage space for the upcoming new harvest.