Tur dal price may touch Rs 140 in Andhra Pradesh

Traders indicate the tur dal price could go up to Rs 140 in the next two months, as arrivals from key markets plummet. The failure of monsoons too might add to the problem.

The State, which recorded a dip of 33 per cent (one lakh tonnes) in tur dal production in 2008-09 over the previous year’s three lakh tonnes, is likely to witness a further fall in production this year due to the failure of the monsoon.

Though the price has seen a downward trend in the last few days, it is likely to touch Rs 140 a kg.

While the State Government puts the blame on the traders for the unprecedented crisis, the traders allege the huge dip in arrivals resulted in the price increase this year.

The arrivals of raw tur dal from Tandur market, which used to be 3.70 lakh bags annually, are down to 1.70 lakh bags this year, a shortfall of two lakh quintals.

Reacting to the allegation that traders were resorting to hoarding, Mr Rajendar Kimtee, General-Secretary of the Twin Cities Daal Millers and Merchants Association said, the total stocks in the twin cities and Rangareddy district markets were pegged at 15,000 quintals of raw tur dal and a same quantity of tur dal.

The State imposes a stock limit of 2,000 quintals (of all pulses put together) on wholesalers.

The raw dal itself is costing (the millers) Rs 54 a kg. After conversion, it costs Rs 68-70. Added to this is the 4 per cent VAT and the retailer margins, resulting in the high price.

Realising the sensitiveness of the dal price issue, traders have decided to open special counters to sell it at a lesser price.

Also, the kharif season indicates still harder days ahead. The State, which grows tur in 4.52 lakh hectares, is expected to end with lesser output this year due to severe shortage of rainfall. The area shrunk from 4.63 lakh hectares in 2007-08 to 4.42 lakh hectares in 2008-09.

As on July 30, there is a shortfall of 30 per cent in the total area sown. This would further increase as rains continue to elude the tur growing area.