Prices of pulses trade below MSP on account of bumper production

Traders demand to lift stock limits and allow exports

by Natasha Nadkar

According to Agmark’s data, prices of moong, urad, arhar and lentils are trading below their minimum support prices (MSP). Pulses production has touched an all-time high of 22.14 million tonnes in 2016-17, as per the second advance estimates of the Ministry of Agriculture. Market intervention agencies are either unable to buy pulses at MSP or facing storage issues while making the purchases. The India Pulses and Grain Merchant Association (IPGA) has suggested the government to lift stock limits on pulses and allow exports. The government has not achieved even half of the two million tonnes target set for buffer stock, as per media reports.

Pulses traded below the MSP
Pulses MSP Market Prices*
  (Rs./Quintal) (Rs./Quintal)
Arhar (Tur) 5,050 2,890-4,789
Bengal Gram 3,425 1,925-2,800
Black gram (Urad) 5,000 4,185-4,700
Green gram (Moong) 5,225 3,900-4,675
Masoor (Lentil) 3,325 2,701-3,000
Note: *Market Prices during 1-15 February 2017
**Prices of pulses as reported by the Business Standard

References
1. http://www.business-standard.com/article/markets/record-yield-has-pulses-prices-slide-below-msp-117021600456_1.html
CMIE STATISTICS
Unemployment Rate
Per cent
5.5 -0.1
Consumer Sentiments Index
Base September-December 2015
94.4 -0.4
Consumer Expectations Index
Base September-December 2015
96.2 -0.3
Current Economic Conditions Index
Base September-December 2015
91.4 -0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Mar 16 Jun 16 Sep 16 Dec 16
New projects 3.31 1.54 2.34 1.42
Completed projects 2.26 0.90 2.15 0.76
Stalled projects 1.04 1.32 0.35 0.44
Revived projects 0.63 0.42 0.51 0.17
Implementation stalled projects 0.92 0.50 0.57 0.79
Updated on: 24 Feb 2017 12:20PM
Quarterly Financials of Listed Companies
(% change) Mar 16 Jun 16 Sep 16 Dec 16
All listed Companies
 Income -0.2 -0.9 2.1 6.4
 Expenses 0.9 -0.4 1.8 6.7
 Net profit -29.1 -3.5 15.3 36.4
 PAT margin (%) 4.9 6.9 7.0 6.0
 Count of Cos. 4,397 4,354 4,314 4,228
Non-financial Companies
 Income -2.1 -2.5 0.6 6.1
 Expenses -3.9 -2.9 -0.2 7.6
 Net profit 4.8 10.3 27.5 20.5
 PAT margin (%) 6.2 7.4 7.0 6.1
 Net fixed assets 3.8 -9.2
 Current assets 3.1 8.1
 Current liabilities 10.6 11.5
 Borrowings 6.7 3.1
 Reserves & surplus 7.9 8.6
 Count of Cos. 3,456 3,426 3,394 3,337
Numbers are net of P&E
Updated on: 24 Feb 2017 12:28PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 11.9 9.3 4.3 0.2
 Expenses 12.1 9.2 4.3 0.3
 Net profit 1.0 -4.2 2.7 -12.1
 PAT margin (%) 3.6 3.2 3.3 3.4
 Assets 14.1 12.2 8.9 7.7
 Net worth 9.5 9.4 8.2 6.2
 RONW (%) 6.8 6.0 6.1 5.7
 Count of Cos. 23,087 20,259 18,916 14,317
Non-financial Companies
 Income 11.1 8.9 3.3 -1.1
 Expenses 11.4 8.6 3.4 -1.9
 Net profit -8.9 -5.6 -3.6 14.1
 PAT margin (%) 2.4 2.1 2.2 3.1
 Net fixed assets 12.9 11.3 12.3 10.8
 Net worth 7.7 8.3 6.6 5.0
 RONW (%) 5.4 4.8 4.8 6.1
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.0 1.9 1.9 2.1
 Net working capital cycle (days) 71 69 68 68
 Count of Cos. 17,721 15,860 14,813 11,415
Numbers are net of P&E
Updated on: 21 Feb 2017 3:48PM

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Low government spending and low consumer expectations to keep growth subdued

Modest increase in capital expenditure; no incentive to private players

Rs.5.34 trillion or 3.2% of GDP