Last week, the Toor Dal market showed signs of sluggishness, but as the week came to an end, it improved to a certain level. Most markets are experiencing lower arrivals and weak demand due to high prices. Let’s explore more about the same:

Price Trends In Toor Dal

Akola: Toor Dal market opened at Rs. 12,100 per quintal on 11 September 2023 and closed at Rs. 12,000 per quintal on 16 September 2023. The drop of Rs.100 per quintal was attributed to waning demand. Although Desi Toor Dal remained weak throughout the week, Lemon Toor Dal saw a slight increase after the decline.
Nagpur: The Nagpur market also witnessed a decline with prices starting at Rs. 16300 per quintal on 11 September 2023 and ending the week at Rs. 16000 per quintal on 16 September 2023.

Limited Purchases Due To High Prices

Toor Dal’s high prices have restricted purchases, but experts believe that demand could improve soon. The weak Toor Dal stock has caused significant concerns for millers, and deliveries from Burma for September 2023 are still pending due to this low stock.

Experts suggest that if 40-50% of deliveries are met, there won’t be any Toor Dal shortage, and it will continue to be available, though possibly in limited quantities.

Viable Alternative

In this situation, the African Toor Dal remains the only viable alternative. However, African Toor Dal import is currently quite weak. Crop conditions in India are favourable, with rainfall providing relief to the crops. New Toor Dal arrivals are expected to start in January 2024.

The domestic stock of Desi Toor Dal is low, and Karnataka’s Toor Dal pressure is likely to build up in February 2024. This means that the domestic demand for African Toor Dal will remain until at least February- March 2024.

Supply-Demand Gap

Now, the big question is when the African Toor Dal will meet India’s demand completely. There is a significant difference between Toor Dal’s supply and demand. Experts believe that for the next three months- October, November, and December – India will depend heavily on the African Toor Dal. If African Toor Dal imports increase, it could lead to a surge in demand due to empty pipelines. Currently, the risk of Toor Dal prices exceeding Rs. 200-300 in the near future seems unlikely.

Market Outlook

In the coming days, Mozambique may release Toor Dal, which could increase market availability. This could bring some relief to consumers and help stabilize prices.

OFB’s Insight

The Toor market in India is experiencing fluctuations, with prices showing signs of weakness but also hints of improvement. High prices are limiting purchases, and the weak stock of Toor Dal is a cause for concern. African Toor Dal is an alternative, and if imports increase, it could bridge the supply-demand gap.

Consumers can hope for some relief in the near future, but prices are expected to remain stable for the time being. The situation will become clearer in the coming months as new arrivals and imports shape the market dynamics.