Signs of improvement in the price of Tuvar due to complex supply and strong demand
03-Sep-2024 05:32 PM
Mumbai. Although in recent days there was some softening in the domestic market price of Tuvar, but now there are signs of improvement in it again.
According to trade analysts, on one hand the import of Tuvar from abroad is decreasing and secondly, the demand for the festive season has also started coming.
The sowing of Arhar has almost ended and its area has also increased, but it will take a long time for this new crop to be ready and come to the markets.
According to an analyst, there is no doubt that there is not enough stock of Tuvar in India. Its demand and consumption often increases during festivals.
It is being imported in limited quantity from Myanmar and African countries. The government has imposed storage limits on Tuvar, but still its arrival in the markets is very less.
The stock of Tuvar with the producers is gradually decreasing. There is limited stock of this important pulse left in the central pool. There is no country that can export Tuvar to India as much as it needs.
Actually the problem with tuvar is that its domestic production is much less than its use. According to government data, during the Kharif marketing season of 2023-24, about 34 lakh tonnes of tuvar was produced in the country while its domestic consumption is likely to be close to 45 lakh tonnes.
To bridge this huge gap of 11 lakh tonnes between demand and supply, imports from abroad are required but such stock is not available in the exporting countries.
Apart from government figures, industry and trade analysts believe that the domestic production of tuvar in the 2023-24 season was less than 30 lakh tonnes because on one hand there was a decrease in the sowing area and on the other hand there was a severe drought in August 2023 due to the outbreak of El Nino. The tuvar crop in top producing states like Karnataka and Maharashtra suffered heavy damage due to this.
At least 9 lakh tonnes of tuvar will be required to meet the festive demand during September to November 2024.
This period is considered to be the time of maximum consumption in which 9 to 12 lakh tonnes of tur is consumed.
Even if we assume a reduction of 2 lakh tonnes in the demand this time due to very high prices and non-availability of stock, there will not be sufficient stock of tur (tuvar) in the country to meet the remaining demand.