Decrease in urad prices: impact of increased sowing areas and weak demand

As of July 31, the area under urad in India has increased by 10% and reached 21.08 lakh hectares compared to 19.8 lakh hectares a year earlier. Significant growth in sowing was recorded in several regions: in the state of Uttar Pradesh, the area increased by 61% (to 5.52 lakh ha), in Madhya Pradesh by 16% (to 6.72 lakh ha), in Rajasthan by 20% (to 3.75 lakh ha), and in Gujarat by 40% (to 0.71 lakh ha). Growth was also noted in the states of Jharkhand, Chhattisgarh, and Andhra. At the same time, in the states of Karnataka and Maharashtra, the sown areas decreased by 25% and 50% respectively.

Against the backdrop of improved harvest prospects and favorable conditions for sowing the crop during the Kharif season, wholesale prices for urad have trended downward. According to the Ministry of Agriculture, the average all-India wholesale cost of the crop as of August 3 was 8,638 rupees per quintal. For comparison: a week earlier, the price was 8,908 rupees, two weeks earlier it was 8,980 rupees, and peak values three weeks ago reached 9,132.55 rupees per quintal.

The India Pulses and Grains Association (IPGA) notes that price dynamics are also influenced by expectations regarding import volumes, the strengthening of the rupee, and the decline in quotes for products from Myanmar. Traders and millers remain cautious in their procurement due to weak demand for finished products. Currently, urad from Myanmar is trading at a price of about 9,500 rupees per quintal; experts do not rule out a decline to 9,350 rupees if the current price level is broken.

Further pressure on the market is exerted by stable supplies from abroad through the port of Chennai, which are expected until mid-August. If weather conditions remain favorable, harvesting in India will begin in mid-September and will become more intensive by the end of the month, coinciding with the arrival of shipments from Brazil.