Importers default on 20,000 tonnes tur as prices plunge

The slump in domestic prices of tur in the past six weeks have led to huge defaults by importers who have not taken delivery of the pulse. About 800-1,000 containers, each having 25 tn of mostly the Burmese variety of tur or lemon tur, have been lying unclaimed at the Chennai port for the last few days, a trade source told Cogencis.

 Most of these shipments from Myanmar were contracted in a range of $1,200-$1,300 per tn. But prices have slumped to $925-$950 since then, causing huge losses to importers. Some more defaults are likely in the coming weeks, said another Mumbai-based trader. An expected higher output of tur in 2016-17 (Jul-Jun) in India and a subdued demand have led to the fall in domestic as well as global prices, traders said.

Acreage under tur in the country so far in the kharif season is estimated at 4.99 mln ha as on Friday as compared to 3.35 mln ha in the corresponding period last year. India, the largest producer and consumer of the pulse, had to rely on the international market for the supplies due to lower output following deficient monsoon rains in the last two years.

Production of tur in 2015-16 fell 12.5% to 2.46 mln tn, farm ministry data showed. In 2014-15, the output of tur had declined to 2.81 mln tn as compared to 3.17 mln tn in 2013-14. About 45%-50% of the tur imports are sourced from Myanmar and remaining is sourced from Tanzania, Mozambique, Malawi and Sudan.

In Mumbai, the key consuming and importing centre, raw lemon tur was selling at 5,825-6,000 rupees per 100 kg, down 100-200 rupees and in Latur, it was selling at 6,000-6,200 rupees per 100 kg, down 300 rupees from Monday.
Expectation of higher output is likely to pull prices further down in the coming months.End