Low demand and ample supply: Chances of price recovery bleak for tur growers

Maharashtra has reported 12.19 lakh hectares of tur cultivation in 2017-18 as compared to 15.32 lakh hectares in 2016-17. State government estimates say Maharashtra will produce around 9.83 lakh tonnes of tur this year. In view of the continuing low prices, Nafed through its agencies — the Maharashtra State Cooperative Marketing Federation and the Vidarbha Cooperative Marketing Federation (VCMF) — has started more than 180 procurement centres.

Till about last week, the State Cooperative Marketing Federation had reported procurement of over 1 lakh quintals of tur. This year, the state is set to see more than 4.8 lakh tonnes of procurement under the Price Support Scheme (PSS). However, prices in the wholesale markets continue to be much lower than the declared MSP. At Latur’s wholesale market, which sets the national trend for the pulse, the price is hovering between Rs 4,385-4,400 a quintal.

Trade sources said chances of prices rising in the future were remote as the country has already 9 lakh tonnes of tur procured last year. To add to this stock, around 80,000 quintals of imported tur is lying unutilised in the godowns of importers. The state marketing federation has over 1 lakh tonnes of tur it procured last year. This the government is now releasing into the market for milling and offloading the daal in the open market.

Traders said this would keep prices low in the months to come. Chances of export, market sources said, are dim given the Indian produce lacks price parity in the international market. Nitin Kalantri, CEO of Latur-based Kalantri Foods, called for steps to increase the demand for pulses. “The government should include pulses in the mid-day meals and also take up campaigns to increase consumption of pulses by people,” he said.

An increase in demand will create newer avenues for the commodity and thus help firm up prices in the wholesale market. Similarly agro-analyst Deepak Chavan called for a five-point programme to increase consumption of pulses and help farmers get assured returns. Chavan suggested the inclusion of the old stock in the public distribution system as well as other government-run schemes like mid-day meals. Chavan too called for a campaign to help increase the consumption of pulses among the general public.

“At the farm gate-level, the government should take up projects to build small pulses godowns which will allow the farmer to store his produce,” he said. Such on-field storage structures, Chavan said, has helped onion growers in Nashik to store their produce and offload it at better prices. “Banks should provide finance for such structures,” he said.