Throughout May, the costs of kitchen staples such as pulses, wheat, and sugar have experienced a steady increase. This surge can be attributed to the shortfall in domestic production caused by the deficient monsoon of 2023. Additionally, the limited availability of chana, urad, and tur in the international markets has resulted in sluggish and costly imports. Furthermore, the prices of sugar and wheat have remained high due to the diminishing buffer stock, raising concerns about stability.
Tur Dal and Chana Dal Prices
For several months now, tur dal has maintained its retail price at around INR 200/kg. Recently, chana dal has followed suit, surpassing the INR 100/kg mark in retail trade. This increase comes as the ex-mill prices for chana dal have reached INR 93/kg in Indore and INR 86/kg in Akola, two significant processing hubs for chana dal in the country.
In the local market, the prices of raw chana have risen for the third consecutive week, as indicated by data gathered by the Indian Pulses and Grains Association (IPGA). Within a week, they surged by approximately 5%, and within a month, they soared by over 10%.
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“Chana dal prices have been on the rise due to the expectation of lower production and farmers and traders holding back stocks, anticipating further price increases,” explained a trader from Maharashtra, who chose to remain anonymous.
After India waived the import duty on chana on May 7, 58,000 tonnes of chana were imported from Australia in March through the diversion of the commodity in transit. According to trade estimates, consumers are unlikely to see a significant decrease in high chana prices, as availability in the international market remains low, while demand for chana flour (besan) rises during the monsoon season.
Sugar Price Fluctuations
Over the past month, ex-mill sugar prices in Maharashtra have surged by INR 100/quintal, reaching approximately INR 3600/quintal, propelled by robust demand. “The demand for sugar remained robust owing to the severe heat wave conditions across the country,” stated Abhijit Ghorpade, a sugar broker based in Maharashtra.
Sugar prices are anticipated to remain strong in the upcoming months.
In the last 15-20 days, wheat prices have escalated by 4-5%. This surge has prompted the processing industry to call for wheat imports to mitigate potential shortages during the lean period following Diwali.
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