Decline in Gram Prices Due to Lack of Demand

11-Nov-2024 07:56 PM

Weekly Review: Decline in Gram Prices Due to Lack of Demand

 

New Delhi – The prices of gram have seen a significant decline in the past week due to a combination of factors, including weak demand and increased pressure from panic selling. The onset of imports from Australia, the start of sowing in the domestic sector, and the conclusion of the festival season have contributed to softening prices of Desi gram.

Key Highlights:

Import Trends: Australia's shipment of gram to India has begun, with expectations of an excellent harvest this season. The quantity of gram imported from Australia is expected to be high, and the quality is said to be the best in the last decade. During the April-August 2024 period, India imported around 3.70 lakh tonnes of gram, with Australian gram accounting for approximately 75,000 tonnes.

Domestic Impact: The end of the festive season has resulted in normalizing demand for gram, especially from large companies like Grain Corp and Bitera, putting additional pressure on prices. Weak demand from dal millers further contributed to the price decline.

Price Trends:

  • Delhi: Prices of Delhi gram dropped by Rs 175 per quintal this week, settling at Rs 6975–7075 per quintal.
  • Mumbai: Prices of Tanzania Chana fell by Rs 150, with Tanzania gram trading at Rs 6550–6600, and Australian gram at Rs 6700 per quintal.
  • Rajasthan: Prices in Rajasthan fell by Rs 50–100 per quintal. Notable prices include Jodhpur (Rs 5800–6600), Jaipur (Rs 7200–7275), and Bikaner (Rs 6700–6900).
  • Maharashtra: Weak demand led to a decline of Rs 100–200 per quintal, with prices in Solapur (Rs 6500–7350) and Akola (Rs 7050–7100).
  • Madhya Pradesh: Prices dropped by Rs 100–200 per quintal, with key prices at Ashoknagar (Rs 6700–6950) and Indore (Rs 7000).
  • Karnataka: A similar weak demand scenario led to a decline of Rs 100–200 per quintal, with prices in Gulbarga (Rs 7300–7500) and Bidar (Rs 5555–7011).
  • Other Regions: Prices in Raipur and Kanpur also saw a decline of Rs 100 and Rs 50 per quintal, respectively, due to the overall weak demand.

Gram Dal: The prices of gram dal also faced a reduction, dropping by Rs 150–300 per quintal. Prices at the weekend were:

  • Delhi: Rs 8375–8750
  • Bhatapara: Rs 8450–8750
  • Katni: Rs 8575
  • Gulbarga: Rs 8600–8800
  • Jalgaon: Rs 8700
  • Indore: Rs 8250–8550
  • Jaipur: Rs 8250
  • Kanpur: Rs 8300–8350

Conclusion:

The ongoing price decline in gram and gram dal reflects a combination of weak domestic demand, high imports, and increased pressure from both domestic and international markets. With the Australian gram harvest expected to be bumper, the market may continue to face price pressure in the coming weeks. As the sowing season begins and festival demand wanes, the market is likely to see a further softening of prices.


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