Source- Business Standard
Arhar or tur is India’s second most important pulse and grown only in the kharif season, making it dependent on the monsoons. The FY14 3rd Advance Estimates set production at 3.38 million tonnes, the highest, 11% more than previous year's output. Arhar prices have been moving up over the past two years at a slow pace, the average all-India wholesale price has been rising since the summer of 2012, staying above ~6,500 a quintal for seven months. One of the reasons why prices have stayed high is the higher MSPs. The FY14 MSP was fixed at ~4,300 a quintal, 11.68% more than previous year’s. However, this year, the CACP has recommended a moderate 1- 3% rise in MSP. With the Met revising monsoon forecast downwards, this year’s production levels are uncertain. The recent rupee appreciation will help in easing pricing pressures via cheaper imports.
IPM data till week ending June 7. The Indicus Price Monitor (IPM), a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from 3,000 mandis. Due to differences in methodology, the IPM levels differ from the corresponding Wholesale Price Index. Broad trends are in sync.