Increase in Gram Prices Just in Two Days
The recent dynamics in the gram market reflect a swift increase in prices by $1,20 per kg, driven by reduced local production and higher import costs. This surge points to a potentially profitable phase ahead, with no signs of an immediate decrease in prices.
Significant Production Decline in Major States
Key gram-producing states are witnessing a substantial downturn in crop production, with a 27-28% decrease from the previous year. This significant drop in production is tightening supply and propelling the demand for this cost-effective pulse.
Market corrections have seen prices temporarily dip, but they remain elevated across various regions. For instance, while Rajasthan experienced a price hike to $0,768 per kg, cities like Indore, Bhopal, Gwalior, and Agra report consistently higher prices due to constrained supplies.
Quality Issues Impacting Local Markets
The variability in crop quality this season is affecting market dynamics significantly. Different regions are reporting lighter grains, which impacts productivity per hectare and influences local market transactions and consumption patterns.
Steady Market Outlook Amidst Production Challenges
Despite some stabilization following the initial price rise, the gram market’s outlook remains strong. Production estimates of 68-70 million metric tonnes suggest sustained market vitality, supported by limited pulse mill stocks and cautious trading practices in response to government policies.