Pulses set for short term sail, prices may rise 10pc
Tuesday, 12 October 2010
AHMEDABAD, Oct 11 (Commodity Online): At the onset of the festive season in India, the prices of pulses are set to sail as the demand for the pulses is seen rising during the festive season in the country.
In India, demand for pulses rise by around 10-20 per cent during the major festivals like Diwali. But as the production this year is estimated to be higher, not much price pressure is expected in the long run.
However, higher demand will drive up the prices but only for short term and that is because of festive season, but in long term prices can be expected to fall sharply on higher production.
India is poised to harvest record kharif pulses crop this year given the fact that as per latest estimates, acreage under pulses has expanded by a whopping 2.0 million hectares against last year.
Major kharif season pulses - arhar/tur (pigeon pea), urad (black matpe) and moong - have all been planted in larger acreages, with pigeon pea alone accounting for over half the additional acreage for pulses.
The statistics provided by the ministry of agriculture, total acreage for all pulses is seen at 11.0 million hectares this season, up by 2.0 million hectares from the last kharif's drought-hit 9.0 million hectares.
However, there have been several reports indicating damage to the crop in some regions due to extended rains, but the extent of loss is yet to be quantified; and there is broad consensus that such damage, if any, would be limited.
Even assuming an average yield of 500 kg a hectare, India may harvest an additional quantum of close to 1.0 million tonnes, a huge increase by any reckoning.
In India, demand for pulses rise by around 10-20 per cent during the major festivals like Diwali. But as the production this year is estimated to be higher, not much price pressure is expected in the long run.
However, higher demand will drive up the prices but only for short term and that is because of festive season, but in long term prices can be expected to fall sharply on higher production.
India is poised to harvest record kharif pulses crop this year given the fact that as per latest estimates, acreage under pulses has expanded by a whopping 2.0 million hectares against last year.
Major kharif season pulses - arhar/tur (pigeon pea), urad (black matpe) and moong - have all been planted in larger acreages, with pigeon pea alone accounting for over half the additional acreage for pulses.
The statistics provided by the ministry of agriculture, total acreage for all pulses is seen at 11.0 million hectares this season, up by 2.0 million hectares from the last kharif's drought-hit 9.0 million hectares.
However, there have been several reports indicating damage to the crop in some regions due to extended rains, but the extent of loss is yet to be quantified; and there is broad consensus that such damage, if any, would be limited.
Even assuming an average yield of 500 kg a hectare, India may harvest an additional quantum of close to 1.0 million tonnes, a huge increase by any reckoning.