Urad (black matpe) prices have started easing after an uptrend of a few weeks, with the All-India average wholesale mandi price slipping to Rs 8,638 per quintal as of August 3, according to Agriculture Ministry data reported by The Hindu Business Line. The level is roughly 3 per cent below the Rs 8,908 per quintal recorded a week earlier, as kharif acreage improves across Central and North India and millers keep buying weak.
Price momentum turns negative
The All-India average wholesale mandi price of urad eased to Rs 8,638 a quintal as of August 3, compared with Rs 8,908 a week earlier and Rs 8,980 two weeks ago, The Hindu Business Line reported. About three weeks earlier, the average price had touched a recent high of Rs 9,132.55 per quintal, after climbing from around Rs 8,233 a month before.
Both imported and domestic urad prices declined for the second straight week ending August 1, according to the India Pulses and Grains Association (IPGA) in its weekly market update.
| Period | All-India average wholesale mandi price (Rs/quintal) |
|---|---|
| A month earlier | 8,233 |
| Recent high (~3 weeks earlier) | 9,132.55 |
| Two weeks ago | 8,980 |
| A week ago | 8,908 |
| August 3 | 8,638 |
Sowing improves across northern and central India
Urad area stood at 21.08 lakh hectares (lh) as of July 31, up 10 per cent from 19.8 lh a year earlier, according to Agriculture Ministry data cited by The Hindu Business Line, even as the overall pulses area trails last year's levels. The biggest jump came in Uttar Pradesh, where acreage rose about 61 per cent to 5.52 lh from 3.42 lh a year ago. Madhya Pradesh gained 16 per cent to 6.72 lh, Rajasthan 20 per cent to 3.75 lh, Gujarat 40 per cent to 0.71 lh, Jharkhand 72 per cent to 0.44 lh, Chhattisgarh 21 per cent to 0.58 lh and Andhra Pradesh 43 per cent to 0.16 lh. Karnataka, however, saw area fall 25 per cent to 0.71 lh, and Maharashtra dropped 50 per cent to 1.76 lh.
| State | Area as of July 31 (lh) | Year ago (lh) | Change |
|---|---|---|---|
| Uttar Pradesh | 5.52 | 3.42 | +61% |
| Madhya Pradesh | 6.72 | 5.79 | +16% |
| Rajasthan | 3.75 | 3.11 | +20% |
| Gujarat | 0.71 | 0.50 | +40% |
| Jharkhand | 0.44 | 0.26 | +72% |
| Chhattisgarh | 0.58 | 0.45 | +21% |
| Andhra Pradesh | 0.16 | — | +43% |
| Karnataka | 0.71 | 0.95 | -25% |
| Maharashtra | 1.76 | 3.58 | -50% |
Supply: imports, Myanmar quotes and Chennai port flows
IPGA said urad prices are under pressure due to expectations of higher imports, softer Myanmar quotes, a stronger rupee, improved kharif sowing after good rainfall and weak buying by millers and traders because of slow demand for urad dal and gota. Continuous overseas supplies at Chennai port until mid-August are also weighing on sentiment, the trade body said. Myanmar SQ urad was trading around Rs 9,500 per quintal; if this level breaks, prices may fall towards Rs 9,350 per quintal, according to IPGA. September and October forward deals are available at a discount, while local forward prices remain lower than import parity, it added.
Demand and processing
Demand-side support remains thin. IPGA described buying from millers and traders as cautious because of the slow offtake of processed urad products such as dal and gota. The weak end-consumption pull, along with the expectation of larger imports, has kept sentiment subdued, the association said, and the trade expects urad prices to remain under pressure in the near term.
Outlook: arrivals from mid-September
In recent weeks kharif urad sowing has progressed well, and a good crop is expected if weather remains favourable, IPGA said. New crop arrivals are likely to begin from mid-September and increase by the end of September, along with Brazil shipments. Until then, the trade body expects continuous overseas supplies at Chennai port and cautious miller buying to keep urad prices under pressure.
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