Decline in Tur Prices Before Harvest Despite a Lower Crop

Rising imports put pressure on prices; growers want a head start on public procurement.

Tur (pigeon pea/red gramme) prices have fallen by 10-15% in the last month to around the minimum support price (MSP) level of 6,600 per quintal, ahead of the harvest season. Growers have expressed a desire to begin procuring pulses as soon as possible.

Furthermore, the increased availability of low-cost imported tur from East African countries and Myanmar puts pressure on domestic prices. According to Agmarknet data, the modal price (the rate at which most trades occur) in the Gulbarga market has now dropped to 6,800 levels from 7,800-7,900 in early November. Growers are concerned that prices will fall further as the new crop arrives in markets in the next two weeks.

The tur crop in Karnataka, a major producer, has been delayed by 2-4 weeks this year. According to Basavaraj Ingin, President of the Karnataka Pradesh Red Gram Growers Association in Gulbarga, this is primarily due to excessive rains affecting the early sown crop during June-July, forcing a section of farmers to replant in several areas. "This year, we have demanded that public procurement begin early in the harvest season," he said.

Market arrivals of the new crop have begun in some parts of the two major tur producers, Karnataka and Maharashtra. According to Rahul Chauhan of IGrain India, the moisture content of the new crop arriving in markets is high. Prices for the new tur crop in Maharashtra are hovering around 6,800-7,111 in places like Solapur, while it is lower in Dudhni at 6,300-6,800. In Karnataka, the new crop in Gulbarga is worth $7,250, according to him.

According to the Agriculture Ministry's preliminary estimates, Kharif tur production this year is expected to be 3.89 million tonnes (mt), down from 4.34 mt last year. However, the trade anticipates that the overall output will be lower than initially estimated. "Tur production is expected to be 3.5 million tonnes," Chauhan stated.

"The crop in Karnataka is lower this year, owing primarily to the impact of excessive rains. While growers faced excessive rains in the early part of the cropping season, they are now dealing with wilt disease, which has resulted in crop drying up in affected fields in parts of Kalaburgi," said Santosh Langar, a miller in Kalaburgi. "Considering the smaller crop size, prices should be firm but they have been seen coming down over the past month, which could be due to increased availability of imported tur," he added.