With rising dollar, pulses too get dearer.

NAGPUR: The fallout of a rising greenback against rupee has spilt the common man's platter too. Tur dal, the staple source of protein for masses, is making headlines as its prices have spiked yet again - this time due to the dollar.

The country, which consumes over 210 lakh tones of pulses in a year, imports 30 to 32 lakh tonnes of the commodity, of which Tur accounts for 25% to 30% of the imports that comes from Myanmar. Since the contracts are settled in dollars, the rising greenback has taken a toll on the prices. Rates of the commodity have seen an increase of over Rs 500 a quintal in a month, now being priced at Rs 68 a kg in retail outlets. Chana dal, which is largely sourced from Australia, has seen a similar jump in the rates.

Ironically, tur dal's global prices at $625 a tonne are lower by over $100, as compared to the same period last year. However, a weaker rupee against the dollar has mounted the rates. Traders say that had the dollar remained at the earlier constant level of Rs 48 to 59, tur dal would have not been priced more than Rs 57-60 in the retail market this season. This has not only affected the common man but even the dal millers' (processors) margins have been hit. Due to a high dollar, the rates have surpassed previous year's level.

Certain pulses including tur have seen a constant rise in the last one month. "Tur dal has risen by over Rs 500, touching over Rs 6,200 a quintal in the wholesale market. Similarly, chana dal has seen a jump of around Rs 800, to Rs 5800 a quintal," said Pratap Motwani, secretary of The Itwari Grain and Seeds Merchants Association. The retail rates of the pulses boils down to Rs 68 to Rs 70 a kg, said sources in the market.

Motwani said minor pulses like batri dal have become dearer by around Rs 500 a quintal (Rs 5 a kg) due to the overall phenomenon. Imported tur plays a key role in the local prices. "If its rates go up, even the domestic variety follows the trend," he said.

Manohar Bhojwani, of Dalayu Dal Mills, claims the rising greenback has hit processing margins. "Had the rupee not weakened to this extent, tur dal in the domestic markets would have been easily priced at Rs 55 a kg," he said.

Motwani expects a further bullish trend ahead for this commodity. Prices will be fuelled by both, due to dollar as well as other market factors. The Andhra Pradesh government is expected to issue a tender of around 2 lakh tonne to be sold through public distribution system (PDS). This will take away a chunk of supply from he open market and in turn increase the prices. There are plans to increase the minimum support price for pulses by around Rs 1000.

Fresh sowing of pulses is expected to go down to as farmers are shifting to soyabean and other crops. This may finally lead to the prices firming up.

Source : timesofindia.indiatimes.com