Production of urad at 10-year low during Kharif 2024 season
12-Nov-2024 09:23 AM
Production of urad at 10-year low during Kharif 2024 season
The production of urad (black gram) in India during the Kharif 2024 season is reported to have hit a 10-year low, with estimates pegging the output at 12.1 lakh tonnes. This marks a significant decline compared to previous years, where production ranged between 12.5 lakh tonnes in Kharif 2015 and a peak of 27.5 lakh tonnes in Kharif 2017.
Key Points:
Production Decline: The drop in production is largely attributed to a reduction in the sowing area, with farmers in key urad-producing states like Maharashtra and Karnataka shifting their focus to other crops like tur (pigeon pea) due to various factors including crop rotation preferences and possibly better returns from tur.
Imports Surge: To compensate for the shortfall in domestic production, India has been importing urad in large quantities. Between April and October 2024, imports reached 4.6 lakh tonnes, a notable increase from the same period last year (3.21 lakh tonnes). This marks an almost 43% rise in imports, highlighting the increasing reliance on imports to meet domestic demand.
Global Imports:
The import trend suggests India is becoming more dependent on international markets for urad. Imports from Myanmar and Brazil were notable in October, with Myanmar supplying 46,425 tonnes and Brazil contributing 9,629 tonnes.
Myanmar, traditionally a key supplier of urad to India, saw a decrease in exports in October, although overall imports from Myanmar reached 7.77 lakh tonnes from January to October 2024.
Price Trends:
In India, the prices of urad have shown an upward trend. On November 11, 2024, the Mumbai FAQ (Fair Average Quality) was recorded at ₹8,650 per quintal, while Chennai FAQ stood at ₹8,450 and SQ (Special Quality) at ₹9,200. These prices reflect a tightening of domestic supply, driven by reduced local production.
On the global market, prices for Burma (Myanmar) FAQ have seen some fluctuation, dropping from $1,005 per tonne on November 4 to $975 per tonne on November 11, signaling some price volatility.
Future Outlook:
The outlook for urad production in Myanmar is uncertain at the moment, although there is a possibility of increased sowing there. However, any impact on overall global supply will depend on the actual harvest.
Given the ongoing decline in domestic production and the possibility of increased imports, there is concern that India may need to rely even more on foreign supplies in the coming months, which could further drive up prices.
In summary, the reduced urad production in India and the rise in imports suggest that the domestic market may face price pressures, especially as global supply dynamics continue to evolve.