Bears Try to Emerge in India

NEW DELHI - Oct /15 - SNS -- State governments in India have confiscated over 124,000 metric tons (MT) of pulses in almost 11,000 raids since anti-hoarding rules were expanded to include all market participants except farmers.

While representing roughly two days supply, the seizures had a strong psychological impact on India's internal markets, with retail prices for some categories of pulses reportedly easing in most major cities.

State officials in Andhra Pradesh, Telangana, Tamil Nadu and Maharashtra have met with wholesalers in an effort to convince them to lower their margins. States like Andhra Pradesh, Tamil Nadu, Telangana, Haryana and Himachal Pradesh are also distributing pulses at subsided rates through public distribution system.

Much of the focus is on tur or pigeon pea, with India's Ministry of Consumer Affairs, Food and Public Distribution reporting wholesale prices have fallen between Rs 1000 and Rs 41000 per metric ton (MT) or between U.S. $15 and $630 MT. Wholesale prices in India currently range between $1920 and $2890 MT. Retail prices have dropped between $30 and $77 MT, now ranging between $2000 and $2925 MT.

Efforts to tame retail prices are made tougher by the fact international pulse markets remain strong, maintaining higher average prices relative to grains and oilseeds since the start of the calendar year.

In recent weeks Pakistan has again emerged as a bullish influence on pulse markets, with the Trading Corporation of Pakistan (TCP) issuing two tenders to buy 10,000 MT of desi chickpeas.