New urad crop arrivals start in Madhya Pradesh, prices may fall more

New crop of urad or black matpe has started arriving in some parts of Madhya Pradesh and Maharashtra, the two key producing states, over the last few days. However, the new crop is being sold at 2,800-3,000 rupees per 100 kg, compared with 3,500-3,700 rupees a year ago, as urad prices are already 46% below the minimum support price of 5,600 rupees per 100 kg fixed by the government for 2018-19 (Jul-Jun). Prices are down this year due to higher moisture content in the new crop. New crop arrivals have started on time this year in Madhya Pradesh, and about 50-60 bags (1 bag = 100 kg) are arriving daily in the market as against 100-120 bags last year. The new crop this year has moisture content of 15-16% compared with 12-13% last year, which has led to fall in domestic demand. In Maharashtra, another key market, arrivals of urad have started in Latur, and 2,500-3,000 bags (1 bag = 100 kg) are arriving daily in the market as against 5,000-6,000 bags last year. Arrivals of the pulse are lower as output is expected to fall due to erratic weather conditions in the key growing areas of the state. New crop is currently being sold in the range of 3,500-4,000 rupees per 100 kg, up 50-100 rupees from the year-ago period.