Dal Prices are Going to IncreaseHome

According to data with the Ministry of Consumer Affairs, retail price of pulses have suddenly shot up since April. Making idli/dosa/uttapam has become costlier in Mumbai as urad dal prices have increased 51% in less than two months. Retail price of urad increased from Rs 42/kg on April 1 to Rs 123/kg on May 20. India's pulses production in FY15 is likely to decline 9.71% to 17.38 million tonne, according to the third advance estimate of food grain production.

At the state level, pulses pulses production in Maharashtra, the second-largest producer of pulses after Madhya Pradesh, is set to drop 64%, as per the state's third advance estimate.

Traders, processors and importers blamed the high prices on insufficient production due to faulty government policies, erratic monsoon and speculation on pulses.

Bimal Kothari, VP, Indian Pulses and Grains Association, blamed government policies for the price rise, especially chana. Nitin Kalantry, a dal miller from Latur a prominent hubs of pulses trade, felt farmers' interest in pulses has waned in the past two years. "Farmers have shifted to cotton and soybean as they didn't get good price for tur and urad," said Kalantry.

Trade sources said retail prices can remain stable at the current level till the next kharif harvest hits the market from September. However, in case of pulses such as tur, prices can move up slightly.

Source: Economic Times