Record Myanmar crop, higher rabi and zaid output to weigh on urad prices
India’s imports of urad during 2024-25 is expected to have increased by 32 per cent to over 8.23 lakh tonnes from 6.24 lakh tonnes in 2023-24
Prices of urad or black matpe continue to trend lower on weak demand. This comes amidst good rabi crop arrivals and expectations of higher imports from Myanmar, which has harvested a record crop this year. Also, with summer crop set to hit the markets in state such as Gujarat and Madhya Pradesh in the weeks ahead, the prices are likely to come under further pressure, trade sources said.
“Myanmar has produced a record crop of around 6.5 lakh tonnes this year against last year’s 5.5 lakh tonnes. People there want to export more, and most of the urad that Myanmar produces finds its way to the Indian market. As a result, the imports could go up this year,” said Rahul Chauhan of Igrain India. The new crop from Myanmar has already started coming to the Indian market, he said.
A section of the trade has pegged the Myanmar crop at 9-10 lakh tonnes. India’s imports of urad during 2024-25 is expected to have increased by 32 per cent to over 8.23 lakh tonnes from 6.24 lakh tonnes in 2023-24, Chauhan said.
Trade cautious
Since November last year, urad prices have crashed by 25 per cent on weak demand and rise in imports from countries such as Myanmar and Brazil. From around ₹95 a kg in November last, the urad prices have come down to the level of ₹72 a kg, said B.Krishnamurthy, Managing Director, Four P International Pvt Ltd.
“The trade has turned very cautious as the prices have been coming down for months together. People are buying only on need basis,” Krishnamurthy said.
The bearish price trend is seen hurting the confidence of the trade. Even millers, who had stocked up, are seeing the value of their inventory going down due to the declining price trend, Krishnamurthy said.
Urad production during the kharif 2024 cropping season was impacted by excess rain. The urad output was down by about 20 per cent at 12.82 lakh tonnes against 16.04 lakh tonnes in the previous year, as per the government estimates. The Rabi output, as per the second advance estimates, is projected higher at 5.17 lakh tonnes over 4.87 lakh tonnes a year ago.
Pressure to continue
“The Rabi crop in Andhra and Tamil Nadu was good this year. We hear the summer (zaid) crop, which will start arriving in a couple of weeks in states like Gujarat and Maharashtra is also expected to be good,” Krishnamurthy said. The higher summer crop is also seen weighing on the urad prices, which are already ruling below the minimum support price of ₹7,400 per quintal.
Chauhan said in recent months, the prices of Myanmar urad have witnessed significant fluctuations. Prices of SQ grade, which had earlier touched $1,200 per tonne, have now consistently declined and stabilised between $880-890 per tonne. The major reason for this decline is the record production in Myanmar, leading to increased competition among the exporters, he said.
The India Pulses Grains Association, in its market update, said on Monday that trade expects urad prices to stay under pressure due to weak buying and no sales of processed urad. “Ongoing disparity from Myanmar is a concern and with the large crop in Myanmar, they may start selling, which could lead to panic sales,” it said. The market may face additional pressure as the new summer crop from MP and Gujarat will arrive soon, followed by Brazil shipments starting mid-June.
“Trade sources expect urad prices to hit bottom in May month. Sentiment remains cautious with price trends depending on Burma’s CNF quotes for India” it said.
Published on April 28, 2025
