Prices of key pulses such as tur and chana and of oilseeds such as soybean and groundnut have risen sharply compared with last year, as scanty rain damages the standing kharif crop and raises concern about output in the coming rabi season.

Wholesale tur is more than 30% dearer than at this time last year and chana 11%, while soybean has jumped more than 40% and groundnut 50%, according to data from the Indian Pulses and Grains Association and the Solvent Extractors' Association.

'The prices are ruling firm as there is a concern about the condition of the tur crop in Karnataka and adjoining parts of Maharashtra, where the moisture stress has increased in recent weeks,' said Rupesh Rathi, executive member of the All India Dal Millers Association. 'However, the prices are still only moderately higher than the minimum support price levels.'

Karnataka, Maharashtra and Madhya Pradesh are the main producers of tur and chana, and Maharashtra and Madhya Pradesh lead soybean. Karnataka has already declared drought in about 100 taluks, and several districts of Maharashtra's Marathwada carry a cumulative rainfall deficit of 36%. 'Along with the gap in rainfall, the increasing intensity of heat can affect the yield of the crops,' said Latur pulse processor Nitin Kalantri; concerns will grow if the break in rain widens.

Chana, India's most consumed pulse and a rabi crop, is firming on forecasts of a strengthening El Niño, since soil moisture decides the winter sowing: Nafed, which began selling chana from its stocks at ₹60 a kg about ten weeks ago, recently sold at ₹66, and Australia's chana crop — India's main import origin — is expected to be 40–50% smaller than last year. Even so, industry veterans say supply is not worrying: tur carry-over stocks are good and 0.7–0.8 million tonnes of tur imports are expected from Africa.

Source: The Economic Times