Commodity Outlook – Tur (Red Gram)

agribazaar October 26, 2020

Sowing period: June to July
Harvesting period: November to February
Crop season: Kharif

Key growing locations for Tur:

Maharashtra – Amarawati, Wardha, Vashim, Latur, Buldhana, Akola
Telangana – Adilabad, Warangal, Karimnagar, Nalgonda
Karnataka – Gulbarga, Raichur, Bidar, Bijapur
Madhya Pradesh – Raisen, Sehore, Hoshangabad, Narsinghpur
Gujarat – Junagarh, Rajkot, Dahod
Uttar Pradesh – Kanpur, Hathras, Hardoi, Agra

Production trend and Stock position:

According to Ministry of Agriculture, the sowing acreage of Tur as on September 18, 2020 was 48.24 lakh hectares (lh) up by 6.12 percent compared to 45.46 lh during the corresponding period.
As per the Ministry of Agriculture first advance estimate released on September 22, 2020, Tur production for 2020-21 was 4.04 million metric tonnes (Mn MT) compared to previous year which was 3.83 Mn MT, up by 5.48 percent.
According to media reports in a bid to cool down the recent hike in pulses prices, the Union government plans to release 40,000 MT of Tur dal from its buffer stock into the retail market in small lots.
According to the notification issued by the Directorate General of Foreign Trade (DGFT) on October 13, 2020 a list of eligible and verified applicants who have been allotted quota for import of restricted quantities of Tur for the fiscal year 2020-21 until November 15, 2020.
With reports from various media sources of damage to Tur crops in Maharashtra, Karnataka and Madhya Pradesh on account of continuing rains could see a decline in yield.

Monsoon Update

For the country as a whole, Seasonal cumulative rainfall during this year’s southwest monsoon season upto October 21, 2020 was above Long Period Average (LPA) by 10%. Details of the rainfall distribution over the four broad geographical regions of India are given below:

Market commentary: Price outlook

Overall Tur prices are likely to trade steady to slightly firm in the immediate / short term with a possibility of an uptrend to continue in spot market due to the coming festive season.
The Government had increased the Minimum Support Price (MSP) on September 21, 2020 of Tur by 3.45 percent to ₹ 6,000 per quintal for 2020-21 compared to ₹ 5,800 in 2019-20.