This week the prices declined by Rs. 200~300/q. The buying in the mandis was very less. Selling of pigeon peas split is also weak due to a lack of demand in pulses.
The arrival in the mandis is very less and now the remaining stock is of low quality.
With this, Lemon ready in Chennai opened from Rs.10,000/q on Monday and fell to Rs.9800/q by Saturday.
Gajri was trading at $1,000 for September-October on Monday, but fell to $950 by Saturday due to weak demand.
According to the traders, everyone is trying to adjust their stock to abide to the stock limit leading to extremely weak buying, but improvement might be seen in a couple of days.
Monsoon is delayed by 20 days in Karnataka. Although it rained a bit yesterday. Sowing will now start in Gulbarga, Bidar, Raichur, Bijapur, Feram, and Yadgir regions.
Due to delay in rains, farmers have sown cotton in the Deglur region. There is a possibility of delay in the pigeon peas crop this time.
For a few days, there will be slight softening in the market, however, in the first week of July, the price is expected to increase due to good demand.
There was a tremendous jump in prices this week. Solapur pigeon peas opened at Rs. 10,100/q on Monday and reached Rs. 10,650/q during the week. However, due to the imposition of stock limit on Friday night and due to weak buying a fall of Rs. 150~200/q was recorded on Saturday.
In order to control the rising prices of pulses and inflation in food grains, the central government has imposed stock limit restrictions. The stock limit has been implemented till October 31st, 2023.
Traders will no longer be able to keep stock of pigeon peas and black matpe in excess of the prescribed quantity.
A ceiling of 200 MT has been fixed for wholesalers. 5 MT for retailers and large retail chains will not be able to keep more than 5 MT of stock at their stores and 200 MT in depots. Mills will also not be able to keep a stock equal to the production of the last 3 months or more than 25% of their total annual production capacity.
Despite the imposition of stock limit, there was not much fall in Chennai Lemon on Saturday. July deals are done in Rs. 10500~10600/q. The sentiments were again strong till afternoon.
On the other hand the stock of Africa is also less. Forward deals of new crop are being done for $1050/MT. Demand is also very good at these prices.
The arrivals in the mandis are very low and stock with the millers is also not much. Due to this, the rise in prices is getting support.
There are more than 7 months left for the new crop to arrive in the country.
However, there will be no shortage of pigeon peas in the next season. Farmers informed Khoj that due to the high price of pigeon peas, their interest will be more in growing pigeon peas in the next cropping.
Overall, there is little chance of a major fall in prices due to the shortage of pigeon peas in the country.