The Indian government will have to manage the prices of pulses prudently as the acreage under the crop is down by eight percent. Besides, farmers in key growing States such as Karnataka and Maharashtra are in desperate need of water to irrigate the standing crops amid up to 77 percent rainfall deficit this month.
According to kharif sowing data released on Friday by the Indian Ministry of Agriculture, the area under all pulses is lower by 8.3 percent at 11.744 million hectares (mh) as of August 25 against 12.807 mh a year ago. Even individually, all three major crops — Pigeon pea, Black lentil, and moong — have been sown in less area than last year.
Moong (green gram) has been covered on 3.064 mh (-8.1 percent), Black lentil on 3.110 mh (-13.81 percent) and Pigeon pea on 4.211 mh (-5.3 percent). Other pulses (except kulthi) are also down five percent at 1.334 mh.
Rajasthan an exception
While Rajasthan has reported 0.136 mh higher area, most other major pulses-growing States have witnessed lower acreage. Madhya Pradesh reported 0.358 mh less acreage, Karnataka 0.315 mh, Maharashtra 0.273 mh, Uttar Pradesh 0.61 mh, Telangana 0.46 mh, Andhra Pradesh 0.44 mh and Gujarat 0.40 mh.
According to the India Meteorological Department, rainfall during August 1-25 was 77 percent below normal in Rajasthan, 75 percent lower in Karnataka, 58 percent less in Maharashtra and 28 percent deficit in Madhya Pradesh.
Lower acreage
The lower acreage seems to have its reflection on prices of pulses as the all-India average retail price of Pigeon pea reached $1.69/kg, that of Black lentil to $1.40/kg and moong dal $1.36/kg. Compared with retail prices six months ago, Pigeon pea has jumped by a quarter, but moong dal and Black lentil prices have increased by seven percent and eight percent, respectively.
The wholesale rates of these three key dals are higher by six-26 percent from rates six months ago, according to data from the Consumer Affairs Ministry. In a report on Friday, Kotak Economics Research said weekly prices of Indian pulses jumped seven times and declined six times since June 1, indicating the fluctuation in rates was more influenced by demand-supply factors rather than any negative sentiments.
However, traders said the scarcity of tur and Black lentils is influencing prices of other pulses after chana (Bengal gram) increased by ₹ six to seven a kg in the retail market in recent days despite higher production estimates by the Ministry of Agriculture.
“Production will be a key factor that will decide the price behavior after October. Though the government’s crop production estimates may come next month, traders will keenly wait for the mandi (market) arrivals as they will be more authentic to indicate a trend,” said Anurag Desai, a food price analyst in Jaipur.
Meanwhile, the Agriculture Ministry data show that paddy sowing is higher by four percent at 384 mh and only 15 mh less than the normal area of the season. Unlike pulses, where the sowing window is complete and only data has to be compiled, the paddy transplanting goes on till September-end. The overall acreage of all kharif crops reached 105.36 mh, which is 0.363 mh more than the year-ago period.