Urad Prices Slip for Second Week as Acreage Surges 10% and Demand Stays Weak

After rallying sharply from around ₹8,233 per quintal to a recent high of ₹9,132.55 per quintal, urad wholesale prices have reversed course over the past fortnight. Agriculture Ministry mandi data shows the all-India average wholesale price slipping to ₹8,908 per quintal a week before August 3 and further to ₹8,638 per quintal by August 3 — marking the second consecutive week of decline.

The trade body India Pulses and Grains Association (IPGA), in its weekly market update, attributed the slide to a confluence of factors: expectations of higher imports, softer Myanmar quotes, a firmer rupee, and weak buying interest from millers and traders amid sluggish retail demand for urad dal and gota. IPGA noted that buying remains cautious and that the near-term price outlook stays under pressure.

Urad sowing data as of July 31 paints a broadly bullish supply picture. All-India urad area has climbed 10 per cent year-on-year to 21.08 lakh hectares (lh), compared with 19.8 lh in the same period last year, even as the aggregate pulses acreage continues to trail last year's totals.

State-wise highlights:

• Uttar Pradesh: +61% to 5.52 lh (from 3.42 lh)
• Madhya Pradesh: +16% to 6.72 lh (from 5.79 lh)
• Rajasthan: +20% to 3.75 lh (from 3.11 lh)
• Gujarat: +40% to 0.71 lh (from 0.50 lh)
• Jharkhand: +72% to 0.44 lh (from 0.26 lh)
• Chhattisgarh: +21% to 0.58 lh (from 0.45 lh)
• Andhra Pradesh: +43% to 0.16 lh (from 0.11 lh)

Not all states are contributing to the upswing. Maharashtra has seen a sharp 50 per cent decline to 1.76 lh from 3.58 lh, and Karnataka is down 25 per cent to 0.71 lh — partially offsetting the gains elsewhere.

Import dynamics are amplifying the domestic price correction. Myanmar SQ urad is currently trading at around ₹9,500 per quintal, and IPGA flagged that a break below this level could drag prices toward ₹9,350 per quintal.

Continuous overseas supplies arriving at Chennai port are expected to persist through mid-August, keeping import sentiment soft. September and October forward deals are already available at a discount, and local forward prices remain below import parity — a signal that the trade does not anticipate a quick recovery. Brazil shipments are additionally expected to hit the market around the same time as domestic new-crop arrivals, compounding the supply overhang in the September–October window.

IPGA struck a cautiously optimistic note on crop prospects, stating that kharif urad sowing has progressed well following good rainfall and that a good crop is expected if weather remains favourable. New-crop arrivals are anticipated to begin from mid-September and gain momentum by end-September.

For farmers, the timing of arrivals relative to the current price slide will be critical. Those who can store or stagger sales may be better positioned to avoid selling into a heavily supplied market. With overall pulses area still trailing last year's levels nationally — even as urad acreage expands — the crop mix shift toward urad reflects farmer responsiveness to the price signals that prevailed earlier in the season. Whether those price signals persist into the arrival period remains the key question.