Rupee has again started depreciating against the dollar and now again at new historical low of 80.73 when this report is made. The depreciation in Rupee Vs Dollar is likely to continue further and as per the chart reading, AgriWatch expects that it may cross 81 mark soon and may deprecate further towards 82 levels.
The depreciating Rupee in one side is making the exports very lucrative but on other hand it is making imports unviable. Currently, in this Kharif 2022 the acreage of Pulses of Urad, Toor and Moong is down my 4 to 6 percent in the country and continuous excess rains over the key growing states have adversely affected the crop which is expected to keep the production of the pulses especially for Tur and Urad at a lower level and partly in Moong. So, the dependency in imports is increasing for both Tur and Urad from Myanmar and African countries.
Already, the international prices of Tur and Urad especially in Myanmar is at higher side (C&F quotes for Lemon Tur is USD 925/MT & for Urad SQ and FAQ is USD 985 & 845/MT) and there is no parity in imports. Continuing depreciation in Rupee is further expected to widen the disparity in imports due to which moving ahead, volume of imports is very likely to be lower. Given situation, is expected to fuel the prices when the country is already expected to harvest a lower crop.