Tur prices in Maharashtra plunge; traders fear a bigger crash coming soon

By: |
Pune | Published: February 16, 2017 3:50:59 AM

Prices of tur (arhar) continue to fall throughout several key pulses market yards of Maharashtra with fears being expressed by several traders that the prices are likely to fall further by another Rs 100-200 per quintal on heavy arrivals.

While the government has issued notices to traders warning traders who are purchasing pulses below the Minimum Support Price ( MSP), the heavy arrivals in the markets has led to a crash in prices, industry experts said. (Reuters)While the government has issued notices to traders warning traders who are purchasing pulses below the Minimum Support Price ( MSP), the heavy arrivals in the markets has led to a crash in prices, industry experts said. (Reuters)

Prices of tur (arhar) continue to fall throughout several key pulses market yards of Maharashtra with fears being expressed by several traders that the prices are likely to fall further by another Rs 100-200 per quintal on heavy arrivals.

While the government has issued notices to traders warning traders who are purchasing pulses below the Minimum Support Price ( MSP), the heavy arrivals in the markets has led to a crash in prices, industry experts said.

Prices dropped to Rs 4,500 per quintal in Latur, a key pulses producing region of the state and were in the range of R4,100-4,200 and R4,300 per quintal in Vidarbha region, another major pulse producing region in the state with the beginning of the new season.

According to Hukumchand Kalantry, president, Latur Dal Millers Association, the crop size this year is the highest in several years, largest in 10 years, he said.

“The current arrivals are in the range of 10,000 quintals. Arrivals are slow currently because of the elections and once the elections are over, arrivals will come under heavy pressure which will again lead to a drop in prices,” he said.

Maharashtra is one of the major tur-producing states in the country and had a bumper crop this year. Tur dal production in the state is estimated at 11.71lakh metric tonnes against 4.4 lakh metric tonnes the previous year. The area under tur also rose last year.

A total area of 15.33 lakh hectare was under tur in 2016 against 12.37 lakh hectare in 2015. The MSP for tur dal is Rs 5,050 per quintal, but farmers are getting only Rs 4,200-4,300 per quintal, prompting them to complain to the government.

The state government started taking action against such traders with market yards committees in Parbhani, Latur, Akola and Hingoli — key markets for pulses in the state — issuing notices to them. Several Agriculture Produce Market Committees ( APMCs) had remained shut and trade was suspended with traders demanding that the government should pay the farmers, the additional bonus Rs 425 per quintal.

Although Nafed is making purchases, there is a limitation on the quantity that can be purchased, since there is not enough storage space, not enough manpower for weighing the commodity, he said. In several places procurement centres are not operating for the same reason, he said.

The India Pulses and Grain Association (IGPA) has also urged the Centre to review and remove the current export ban on pulses in the country.

IPGA has proposed that the removal of export bans on pulses will enable the farmers to get an additional source of revenue, apart from selling in the domestic market and level out spikes and troughs, besides giving elbow room to government to manage prices better during shortages.

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