Tur rates cross MSP after 2 yrs, hike expected due to fears of low output

Nagpur: After two years of slump which left the farmers in losses, rates of tur — the staple source of protein across the country — have finally crossed the minimum support price (MSP) mark, though marginally. As against the MSP of Rs5600/quintal, since a week tur is fetching Rs5,800 to Rs5,950 a quintal in the open markets.
Tur is the third important crop of the region after cotton and soybean. For the last two years, the low rates had left the farmers disappointed with the harvest also going down. The crop is harvested in January-mid, and farm activists say now when the rates have gone up not more than 10% of the produce is left with the farmers. On the other hand, traders say that farmers are still bringing the crop to markets.
Nikhil Bhojwani of Dayalu Dal Mill said the rates could inch up above the MSP level because of apprehensions of delayed monsoon. A low output in the coming season is expected on account of late rains, which has led to the increase in prices. “Though there is enough stock with the government, on account of earlier MSP procurement delayed rains can continue to impact the rates,” he said. If the prices slip below MSP, government steps in and purchases at the level.
Bhojwani said government has invited applications for importing 3 lakh tonnes of tur, and the quotas will be allotted by June 10. However, if the apprehensions over rains continue, the rates are expected to remain firm still.
Tur is processed into tur dal in the mills. Currently, tur dal is available at Rs88 a kg in the wholesale market taking it to Rs92-93 at the retail counters. Some of the premium brands are also available at Rs115 to 130 a kg. Retailers expect further hike.
Since two years the rates had not even touched the MSP level. Even now it’s only marginally higher than the MSP. “This may benefit the farmers as till 50% of stock is expected to be left with them,” said Pratap Motwani, secretary of Itwari Grain and Seeds Merchants Association.
“Even the government wanted to help the farmers by lifting the rates which was finally possible. The consumers may not be unhappy at this level as tur which had crossed Rs150 a kg in 2014-15 is still within Rs100/kg,” said Motwani.
Kishore Tiwari, chairman of Vasantrao Naik Shetkari Swavalamban Mission (VNSSM), a state government agency for farmers, said the trend will mainly benefit traders as hardly 10% of farmers may be left with the produce at this juncture.
Uncertainty over rains
Tur is the third important crop of the region after cotton and soybean
For two years, farmers suffered due to low harvest
Tur rates had not even touched the MSP level
Rates opened at Rs4,400 to Rs4,800 during Jan-Feb this year
Eventually, the price settled at Rs5,600 which is the MSP
Since a week it is fetching Rs5,800 to Rs5,950 a quintal in the open markets
Tur dal, which is the processed form, is being sold at Rs92 a kg
Traders expect further hike in coming days due to uncertainty over rains