Navigating The Moong Price Surge And Market Dynamics

In recent times, the Moong market in India has been thrust into the spotlight, which has left both farmers and traders concerned. The sudden surge in Moong prices has ignited debates about the sustainability of this upward trajectory and has raised questions about the overall pace of the season. Let’s delve into the key factors affecting Moong prices and their implications.

Current Price 

1. Maharashtra: The prices range from Rs. 9,000 to 11,100 per quintal, depending on quality.
2. Karnataka: It is traded between Rs.9,500 to 12,000 per quintal. Moong supply is mostly dependent on Rajasthan, as the Karnataka side will see arrivals sorted out by the first week of October 2023.

Regional Trends

1.    Rajasthan: One of the key reasons behind the skyrocketing Moong prices in Rajasthan is the dwindling supply. The absence of Moong in the pipelines of Rajasthan, coupled with a decrease in arrivals from the Kanpur-Ranchi line, has led to a significant drop in loading from Rajasthan. This imbalance between supply and demand has resulted in a price increase, with Rajasthan produce now fetching around Rs. 9550-9600 per quintal. 

However, this rapid price hike might not be sustainable in the long run and could result in losses for the market. While there has been an improvement in the arrival of new Moong from Rajasthan, reports suggest that there is a significant reduction in yield after good sowing.

2. Andhra Pradesh and Karnataka: The prices are high & both regions are struggling with transportation issues, so prices are unlikely to drop significantly in these circumstances, and temporary increases could occur due to short supply.

The prices are high in producer markets because farmers have held back their produce due to lower market demand. After a period of rapid price increases in recent days, the market has suffered due to weak consumer demand. Traders are cautiously optimistic, and although a further decline is not imminent, the high prices could be detrimental in the near future.

Government Stocks’ Slow Sale

Although government Moong stocks are available, their sale is progressing slowly. The MSP for Moong in the country is set at Rs. 8558 per quintal. NAFED has also issued a circular to sell Moong purchased under the PSF scheme from Madhya Pradesh. But the market remains uncertain.

Global Dynamics

According to data released by the Ministry of Commerce of Myanmar, during the initial financial year period, from April to August 2023, the country exported 2,22,600 tons of Moong, earning more than 14.90 billion US dollars. Out of this, more than 1,70,600 tons of Moong were exported via sea routes, and around 52,000 tons were exported through land or border routes. Myanmar exports Moong to several countries, including China, India, and the European Union.  However, there has been a decrease in exports to India compared to the previous year, primarily due to the Indian government’s ban on Moong Bean imports from Myanmar imposed on February 2022

Market Outlook

Recent improvements in weather conditions have brought relief to major Moong-producing states. The traders and other stakeholders are advocating for the removal of import restrictions due to weak domestic Moong production and high prices. In the long run, the fundamentals of Moong production appear strong due to lower yields.

OFB’s Insight

The market is currently exhibiting mixed trends, with prices fluctuating in different regions. While Moong prices are high in producer markets, weak consumer demand has caused some instability. Farmers are cautiously holding back their produce, and the market is navigating through uncertain waters. There is an anticipated production of 30,412 tons in Haryana, and the government plans to commence procurement on 1 October 2023 at the MSP, which will provide some stability to the market. In the coming days, it will be crucial to monitor how these various factors play out and their impact on Moong prices in India.