Urad Prices Decline as Government Measures Take Effect

Urad prices are falling due to proactive measures by the Central Government and favorable rainfall. Key states are expecting a strong Kharif production, driven by initiatives for pre-registration of farmers. Consequently, wholesale prices have dropped in major markets, and imported Urad prices are also declining.

Urad prices are showing signs of relief, thanks to several strategic measures implemented by the Central Government. The Department of Consumer Affairs has been instrumental in stabilizing prices, ensuring that consumers benefit from reduced costs while farmers still receive favorable price realizations. According to the Union Ministry of Consumer Affairs, Food and Public Distribution, good rainfall has further bolstered this trend by significantly increasing the sowing area for Urad. As of July 5, the area sown for Urad reached 5.37 lakh hectares, a substantial rise from 3.67 lakh hectares during the same period last year.

Major Urad-producing states, including Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, Rajasthan, Tamil Nadu, and Maharashtra, are expected to yield a fruitful Kharif production this year. The government has encouraged farmers to pivot towards pulse cultivation through pre-registration initiatives led by the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperative Consumer's Federation of India Ltd (NCCF).

These pre-registration drives aim to ensure farmers are adequately prepared for the Kharif sowing season. In Madhya Pradesh, 8,487 Urad farmers have registered via NCCF and NAFED. Other significant states such as Maharashtra, Tamil Nadu, and Uttar Pradesh also reported considerable participation with 2,037, 1,611, and 1,663 farmers respectively, according to a press release.

Additionally, the procurement of summer Urad under the Price Support Scheme (PSS) by NAFED and NCCF is currently ongoing, further stabilizing the market. As a result, wholesale prices of Urad have experienced a week-on-week decline of 3.12 percent in Indore and 1.08 percent in Delhi as of July 6.

Moreover, the landed prices of imported Urad are also trending downward, reflecting the positive impact of domestic market dynamics.