iGrain India - Buyers of Gram remain calm due to increased selling pressure
Weekly Review-Gram Market: Prices Under Pressure Due to Weak Demand and Rising Imports
The gram market this week experienced significant price declines across various regions due to a combination of weak demand and increased imports, especially from Australia. The major factors contributing to the downturn include panic selling by stockists, reduced demand from dal millers, and increasing supplies from Australia.
Market Trends:
Australian Gram Imports: The prices of Australian Gram saw a notable drop, with prices falling by $30 per tonne. For ready December shipments, the price settled at $700/tonne, with January shipments priced at $670 and $650/tonne. Australia is expected to produce 1.6 million tons of gram this year, with a substantial portion (8-10 lakh tons) set to be exported to India. This influx has contributed to downward pressure on local prices.
Domestic Price Declines: As stockists faced pressure to sell off their inventories, gram prices across key Indian markets dropped, especially in regions with weak demand from dal millers. The overall sentiment remained bearish, with several markets experiencing declines of Rs. 150-300 per quintal.
- Delhi: Gram prices fell by Rs. 400 per quintal, with rates in Delhi remaining around Rs. 6700-6725 per quintal.
- Madhya Pradesh: Prices declined by Rs. 200-300 per quintal, with weekend prices at Ashoknagar Rs. 6400/6700, Ganjbasoda Rs. 6400/6800, and Indore Rs. 6700/6900 per quintal.
- Rajasthan: Prices were down by Rs. 150-300 per quintal, with Jodhpur seeing rates of Rs. 5700/6500 and Jaipur at Rs. 6775/7025.
- Maharashtra: Gram prices here also fell by Rs. 150-300 per quintal, with Solapur quoting Rs. 6700/7200 and Nagpur at Rs. 6950/7000 per quintal.
Tanzania and Other Imports: The weak buying sentiment also affected imported grams like Tanzania and Australian Gram. Tanzania prices saw a decline of Rs. 150 per quintal, with the range now between Rs. 6450-6500 per quintal. Australian Gram prices also dropped by Rs. 150, with old stock at Rs. 6600 and new stock at Rs. 7000 per quintal.
Regional Performance:
- Karnataka: Prices fell by Rs. 200-250 per quintal, with the weekend prices for Gulbarga at Rs. 7100/7300 and Bidar at Rs. 5869/6767 per quintal.
- Raipur and Kanpur: Both markets saw price declines of Rs. 250-350 per quintal, with Raipur prices standing at Rs. 6650/6750 and Kanpur at Rs. 6950 per quintal.
Dal Market:Gram dal also saw price declines due to sluggish demand. Prices dropped by Rs. 150-300 per quintal, with the following weekend prices:
- Delhi: Rs. 8175/8550
- Bhatapara: Rs. 8450
- Katni: Rs. 8250
- Gulbarga: Rs. 8600/8700
- Indore: Rs. 8200/8300
- Jaipur: Rs. 8025/8050
- Kanpur: Rs. 8100/8200
Conclusion:The gram market continues to face downward pressure due to a combination of weak local demand and an influx of cheaper imports, particularly from Australia. As stockists look to clear inventories, prices are expected to remain under pressure in the short term. Market sentiment remains cautious, with buyers waiting for potential price stabilization before making further purchases.
