Indian Black Gram Market Edges Higher on Sowing Deficit and Costly Imports

Urad (black gram) prices in India are grinding higher, underpinned by a sharp kharif sowing deficit and costlier imports from Myanmar, even as overall pulses trade remains subdued. Domestic whole and processed urad values have gained modestly week-on-week, but the structural tightness in 2026/27 supply is becoming more visible. Domestic pulses trading activity is cautious, with dal mills resisting aggressive buying. However, materially lower kharif urad acreage so far, especially in Madhya Pradesh, and firm import offers are preventing any meaningful price correction. Weather-related delays in kharif sowing across India have added to concerns that pulse acreage, including urad, will continue to lag last year’s levels, reinforcing a constructive near-term price outlook for black gram.

Prices

Imported Myanmar urad for June–July shipment is quoted around USD 835/tonne for FAQ and USD 915/tonne for SQ, with currency depreciation and higher import costs nudging FAQ offers towards USD 840/tonne. In the domestic market, urad FAQ has risen to roughly USD 870/tonne and SQ to about USD 947/tonne after a weekly gain of USD 10–16/tonne. Processed urad prices mirror this firmness: urad dal chilka trades around USD 953–1,160/tonne, while washed urad dal is indicated at USD 953–1,139/tonne.

*Converted at ~0.92 EUR/USD; values rounded.

Supply & Demand

As of June 12, India’s kharif urad sowing is reported near 155,000 hectares, sharply below about 273,000 hectares at the same time last year. Madhya Pradesh shows a particularly steep drop, from roughly 35,000 hectares to only about 8,000 hectares, while Gujarat has improved only marginally from 7 to about 23 hectares. This sizable acreage deficit is heightening concerns over domestic availability in the coming marketing year.

On the demand side, dal mills and traders are buying cautiously, reflecting high prices and still-uncertain consumer demand recovery. Yet limited imported availability—partly due to elevated Myanmar prices and higher landed costs—and restricted arrivals from deficit-producing states are ensuring that spot supplies remain tight enough to support the market despite restrained downstream offtake.

Weather & Kharif Outlook

India’s overall kharif sowing is still trailing last year’s progress, with pulses among the most affected groups. Recent reports indicate total kharif acreage in early July is roughly 16–21% below the previous year, as an uneven monsoon and intermittent dry phases have delayed planting in several rain-fed regions. Pulses, including urad, are particularly exposed to these rainfall swings given their concentration in central and western India.

IMD guidance points to alternating spells of active and subdued monsoon conditions, with some recent press releases flagging weaker rains over west-central and south peninsular India, key belts for pulses. While improved rains later in July could help partially close the acreage gap, current deficits suggest that urad area is unlikely to fully catch up with last year, maintaining a structurally tighter balance for the 2026/27 season.

Fundamentals & Market Drivers

• Sowing deficit: National urad acreage is down by more than 40% year-on-year at the latest reported date, led by a sharp contraction in Madhya Pradesh. This is the single most important bullish fundamental for 2026/27.
• Import cost inflation: Depreciation of the local currency and rising freight and finance costs are pushing Myanmar FAQ offers from about USD 835 to near USD 840/tonne, raising the floor for domestic prices.
• Tight spot arrivals: Limited arrivals from key producing belts and restricted imported flows have allowed domestic FAQ and SQ prices to gain USD 10–16/tonne in a week, despite muted trade volumes.
• Processing margins: Higher raw urad costs are being passed through into dal prices, keeping urad dal chilka and washed dal firm and discouraging any discounting by mills.

Trading Outlook

• Short-term bias: The near-term price bias for whole urad and urad dal remains mildly bullish, with dips likely to find support from acreage concerns and strong import parity.
• For buyers (dal mills, food processors): Consider staggered coverage rather than waiting for a deep correction, focusing on FAQ grades where domestic and imported parity is still relatively favourable.
• For sellers (farmers, stockists): Gradual sales on strength are advisable, but holding a portion of stocks into the peak monsoon period may capture additional upside if acreage fails to recover and weather turns adverse.
• Risk factors: A late but strong improvement in monsoon rains and a policy-led boost in imports could cap prices; conversely, any further weather setbacks or logistical issues in Myanmar would reinforce the current uptrend.

3-Day Market Direction (Indicative)

• Indian domestic mandis (whole urad, EUR/tonne): Slightly firmer to steady, with an upward bias of EUR 5–10/tonne as buyers cover immediate needs.
• Imported urad CNF India (EUR/tonne): Steady to marginally higher, tracking currency moves and freight; offers expected to remain near current levels.
• Processed urad dal (EUR/tonne): Mostly steady at elevated levels; mills are likely to defend margins, limiting downside in dal quotes over the next few sessions.