News Capsule: International Pulse Prices Firm, Adding Pressure on Domestic Markets
★ International pulse prices have strengthened sharply in the past week, with most major pulses showing a rise in export offer prices for September/October shipment. The increase is likely to keep domestic pulse prices under pressure, particularly as several parts of India have received deficient rainfall, raising concerns over crop yields and productivity.
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Key international price movements
★ Black Matpe: Brazil-origin Grade 1 to India increased to $960/tonne from $950, up 1%. Myanmar SQ to India rose to $965 from $960, while Myanmar SQ to Pakistan increased to $990 from $975, up 2%.
★ Desi Chickpeas: Australian chickpeas increased by $25/tonne across Bangladesh, India, Nepal and Pakistan, with prices rising 3-4%. Australia-to-India prices reached $685/tonne. Tanzania-to-Pakistan jumped $60 to $700/tonne, up 9%.
★ Pigeon Peas: Mozambique-origin Gajri to India rose sharply to $760/tonne from $710, up 7%. Malawi red pigeon peas increased to $675 from $620, up 9%. Myanmar lemon-type pigeon peas rose 3% to $895/tonne.
★ Yellow Peas: Canadian yellow peas to India increased to $425/tonne from $415, up 2%, while vessel prices to India rose 4% to $375. Canada-to-Bangladesh prices increased 5% to $485/tonne.
★ Red Lentils: Canadian Crimson-type lentils to India rose to $590/tonne from $555, up 6%. Prices to Sri Lanka and Turkey also increased 4% and 3%, respectively. Australian Nipper-type lentils to India rose to $555/tonne.
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Market outlook
★ The broad-based increase in international pulse prices is an important bullish factor for the Indian market. Higher import costs could raise the landed cost of pulses and gradually translate into higher domestic prices.
★ At the same time, rainfall remains a key concern. Several pulse-growing regions have received less-than-normal rainfall, which could affect crop development and ultimately reduce productivity. If production estimates are revised lower, the combination of tighter domestic availability and higher import costs could provide further support to pulse prices.
★ With international prices firming across chickpeas, pigeon peas, yellow peas, lentils and matpe, the domestic pulse market is likely to remain firm in the near term, subject to further developments in rainfall, crop conditions and imports.
★ Note: Prices shown are international offer prices in USD/tonne on a CNF basis for September/October shipment.
