Urad market under pressure due to weak demand from pulse mills and a $15 price drop in Burma

Urad prices in the domestic market remained subdued for the second consecutive day due to weak demand from pulse mills and a decline in prices in Burma. Today, Urad prices in Burma fell by $15 per tonne, bringing the rates to $940 per tonne for FAQ and $1,020 per tonne for SQ varieties. This decline in the overseas market has impacted sentiment in the domestic market.

Prices remain under pressure due to continued selling by stockists and limited buying by pulse mills; mills are currently purchasing Urad only to meet their immediate requirements. Meanwhile, sporadic arrivals of new-crop Urad have begun from the Saharanpur region, raising the likelihood of increased market supply. Under these circumstances, the scope for a significant price surge in the near term appears limited.

Favorable weather conditions are expected to boost arrivals of domestic Urad from major producing states. Additionally, increased availability of imported Urad this month could further intensify supply pressure in the domestic market. If stockist selling persists and demand from pulse mills does not improve, a further softening of current prices cannot be ruled out.

However, demand for Urad dal is expected to remain strong over the next two months due to the festive season. Last week, prices had risen due to festive demand and concerns regarding potential crop damage caused by adverse weather in key producing regions. The market's future direction will now depend on prices in Burma, domestic arrivals, the availability of imports, and purchasing activity by pulse mills.