THE price of black gram (urad in India) is escalating and hit a high record of K1,560,000 per tonne, according to the bean market. On 1 June, it was priced at only K1,456,500 per tonne, whereas it tremendously rose to K1,560,000 per tonne on 16 June, reflecting an increase of over K100,000 per tonne in 15 days.
The domestic black gram prices climbed as India, the main buyer of Myanmar’s black gram, has a growing need for bean consumption. Additionally, India’s government hiked the minimum support price (MSP) of pulses, from Rs 6,300 to Rs 6,600 for pigeon peas and black gram, Rs 7,275 to Rs 7,755 for green gram, Rs 3,950 to Rs 4,300 for soybean, Rs 7,307 and Rs 7,830 for sesame, Rs 6,015 to Rs 6,400 for sunflower and Rs 5,550 to Rs 5,850 for peanuts.
The price is expected to remain on upward trends if India’s demand grows. The prevailing prices of black gram in the domestic market are highly correlated with the rise in fuel oil prices and the exchange rate against the dollar. Moreover, India slashed purchase volume from Myanmar this year compared to the same corresponding period last year as they fulfil their requirements of bean consumption with the supply by Pakistan as well.
Despite the low demand, Myanmar’s black gram market raises its head with high prices tracking the prices recorded in India. Black gram prices stand above K1,500,000 per tonne. India, the main buyer of Myanmar’s black grams, has a high consumption of black grams. Furthermore, it reexports them to the external market after processing the grams.
The annual consumption of black grams in India is estimated at 2.7—2.8 million tonnes. India extended relaxations of conditions regarding clearance consignment for black gram and pigeon peas until 31 March 2023. Myanmar conveyed $272.918 million worth of over 360,383 tonnes of various beans and pulses to foreign trade partners between 1 April and 3 June 2022 in the current financial year 2022-2023. The country shipped $227.416 million valued at over 292,114 tonnes of pulses and beans to foreign markets through the sea route, and $45.5 million valued at over 68,269 tonnes were sent to the neighbouring countries through the land border.
Myanmar exported US$1.57 billion worth of over 2 million tonnes of various pulses to foreign trade partners last financial year 2020-2021. The country shipped $966.4 million valued in 1.24 million tonnes of pulses and beans to foreign markets through the sea route, and $604.3 million valued in 786,920 tonnes were sent to the neighbouring countries through the land border.
Myanmar yearly produces approximately 400,000 tonnes of black gram and about 50,000 tonnes of pigeon peas. Myanmar is the top producer of the black gram which is primarily demanded by India, while pigeon peas, green grams and chickpeas are cultivated in Australia and African countries besides Myanmar. — NN/GNLM