WORLD SCENARIO OF COFFEE

World Scenario of Coffee

Coffee plant is a shrub, which is a native to Africa and southern Asia, and whose seeds are used in preparing a sweet smelling drink which itself is known by the name of the plant itself. It is a bushy, evergreen plant is cultivated in the areas that lie in the tropical and semi-tropical belt ranging from 25 degrees north to 25 degrees south of the equator. Winter frost acts as a hindrance in the growth of this shrub. That is why it is generally found at places that are at heights.

Coffee belongs to the genus ‘Coffea’. Its seeds are dried, roasted and then grinded to make coffee powder, which again is used to make coffee drink 

Coffee is a world famous beverage and it is widely drunk in almost every part of the world. The seeds from which this drink is made are actually seeds of the fruit borne by the coffee plant and are called ‘beans’ in trading terms. These coffee beans stand at the 3rd place in the list of legally traded products in the world and are considered to be a very important commodity in terms of trading.

The world’s total production of coffee is around 6 million tons and is leaded by Brazil which has more than 30% share in the world’s total production. Vietnam and Columbia follow Brazil regarding production respectively. The major consuming and importing countries of coffee are

• United States
• Canada
• Japan,

European countries like

• Germany
• Italy
• United kingdom
• Poland
• Spain

Other than the above mentioned countries it is also imported by the African countries. The net imports of coffee figures around 4.5 million tons. The export scenario is that the major share of exports in the world is also held by Brazil and is followed by the other leading production countries.

There are around 25 varities of coffee under ‘Coffea’ known to the world. But two of these varieties are very much popular and are widely used throughout the world. These are coffea arabica and coffea canephora (or coffea robusta). Commercially too, only these types are traded in the various commodity markets. Around 70% of the coffee production is constituted by coffea arabica and 25% by coffea robusta.

Coffea arabica is largely produced by brazil and columbia is said to be of best quality. Some of the popular sub-varieties of this type of coffee are Typica, Bourbon, Caturra, Mundo Novo, Tico etc.

Coffea robusta is cultivated in the areas of West and Central Africa, Southeast Asia, South America including Brazil. It is said to be a more economical variety of coffee as compared to the other one as it can be grown on moist lands having low altitudes. And also it is harvested 3-4 times a year that leads to a higher production level and lower cost level.

• Brazil (33.16% share)
• Columbia (11.65% share)
• Vietnam (10.61% share)
• Indonesia (5.97% share)
• Mexico (4.59% share)
• India (4.60% share)
• Guatemala (rest of the countries have around 28% share)
• Ethiopia
• Uganda
• Honduras
• Cote d’Ivoire
• Costa Rica
• Peru
• Papua New Guinea
• Puerto Rico
• Castalia

The world production of coffee is around 6 million tons annually. Including the above-mentioned countries coffee is produced in 70 countries of the world. The top three producing countries account for over 50% of the total production and hence control the world coffee market. The level of production of these countries is on a declining stage except for Columbia, Uganda and Peru.

Major trading centre

• New York (Coffee, Sugar and Cocoa Exchange)
• London
• Uganda
• Kenya
• Brazil (Brazilian Mercantile and Futures Exchange)
• Singapore (Robusta coffee)

CULTIVATION AND PROCESSING OF COFFEE

Coffee Cultivation and processing

The history of the origination of coffee is quite interesting and has got many legends behind it. It is said that the coffee plant grew naturally in some areas of Ethiopia and was first observed by a sheepherder when his sheep ate the coffee fruit and became hyperactive. He then consumed the fruit himself. The plant was later taken to Arabia and there it became so popular that people there started relating it to their religious sentiments and made it monopolized. After year 1600, it started reaching the nearby countries like India through smuggling practices. The Turks first adopted coffee as a drink.

This is how coffee was popularized as a drink in the rest of the world and people started planting coffee as a crop.

As mentioned above, coffee crop is cultivated in the semi tropical areas of the world having a good amount of rainfall. Coffee plant grows to a height of about 3 metres and its commercial life is around 50 to 60 years. The fruits start to grow in 3 to 5 years of time and take 9 months to ripe. Harvesting of coffee is done by either by hand picking process or by stripping process or by mechanical process. The harvesting periods of various coffee producing countries are different as it is harvested during the dry season. The harvesting time of the coffee crop in different countries are: -

• Brazil – March to October
• Columbia – October to February and April to June
• Mexico – November to January and August to November
• India – November to February
• Guatemala – October to January
• Ethiopia – August to January

Processing and grading

After the fruits are harvested from the coffee plants, the soft flesh of the fruit is removed and the seeds undergo the following processes: -

1. Firstly the seeds are fermented in water from 10 to 36 hours.
2. Washing of seeds is done after fermentation.
3. Seeds are then dried in the sun.
4. Then finally the seeds are roasted at around 200°C

Coffee beans are graded on the basis of various factors. The most important of all factors are the size of beans and the level of imperfections. These grades are described below: -

1.      Specialty grade – This grade has no primary defect and it is selected keeping in mind a specified size with 5% variation. The beans in this classification show 1 or more different characteristic in either of these – taste, acidity, or size. No Quakers are allowed in this grade and a limit of 0 to 3 full defects.

2.      Premium grade – This grade is the same as above except regarding the Quakers and full defects. In this, 3 Quakers and 0-8 full defects are allowed at maximum.

3.      Exchange grade – Quaker limit is 5 at maximum in this grade and 9 to 23 full defects are allowed.

4.      Standard grade – A limit of 24 – 86 full defects is allowed . Off grade – If the beans contain more than 86 full defects, it is called off grade.

COFFEE MARKET IN INDIA

Indian Coffee

The traditional coffee producing areas in India are: 

• Karnataka – Chikmagalur, Coorg including Mysore, Hassan districts
• Tami Nadu – Pulneys, Nilgiris, Shevroys (Salem), Anamalais (Coimbatore)
• Kerala – Wyanad, Travancore, Nelliampathies

The non-traditional coffee producing regions in India are: -

• Andhra Pradesh
• Orissa
• Assam
• Manipur
• Meghalaya
• Mizoram
• Tripura
• Nagaland
• Arunachal Pradesh

  India stands at the 6th position in the list of coffee producing countries. The production of coffee in India fell drastically in 2002-03 like in the other countries of the world. But it has started recovering from that downfall and the production increased slightly in 2003-04. The areas having a good altitude are indulged in cultivating coffea arabica and the low-lying areas having a hot climate cultivate coffea robusta. Robusta coffee production contributes to about 62-65% of the total coffee production whereas Arabica contributes to 35-38%. Karnataka has the maximum cultivated area i.e. 53%.

Though India just contributes a mere 4% share in the world’s coffee contribution but still Indian coffee is considered to be one of the most stimulating coffee in the world. India is indulged in producing coffee that is mild in nature i.e. having a low acid content. Most of the coffee grown in India is cultivated under shade. India’s production stands at around 3 lakh tons annually and around 70% of the total production of coffee is exported i.e. around 210000 tons. The countries, which import coffee from India, are: -

• Italy
• Russia
• Germany
• Belgium
• Spain
• Slovenia
• France
• Finland
• Algeria

India produces some specialty types of coffee also namely

1. Monsooned coffee – This coffee is very much popular in the world. Earlier when there were less resources available for transportation, the coffee from India, in transit to Europe, faced humidity and that turned the color of the coffee to pale yellow and the taste also. This was the birth of a new variety i.e. the Monsooned coffee.Even today, through out the months of monsoon, the coffee is left in an open warehouse to make it ‘monsooned’.
2. Mysore nuggets extra bold – This type of coffee have extra large beans, greenish in color and have quite strong fragrance. Unlike the other varieties produced in India, mysore nuggets has a good acid content.
3. Robusta Kaapi Royale - Robusta Kaapi Royale is a smooth, less acidic coffee made from Robusta Parchment AB class of coffee. The coffee beans are round in shape and grayish in color.

The Indian consumption of coffee is also increasing with time. India consumes around 30% of the total quantity produced. Before liberalization, the Coffee Board controlled coffee marketing in India but after liberalization that interference of the board was completely removed.

Coffee traded at the Indian commodity exchanges like  ·         National Commodity & Derivatives Exchange ltd ·         National Multi Commodity Exchange of India ltd

Future contract specifications of coffee in various commodity exchanges

COMMODITY TRADING IN INDIA

Commodity trading in India

Before the advent of the industrial revolution, trading mainly took place with agricultural commodities such as corn, maize, oats, wheat, livestock, hogs and pigs. In 1848, the world’s oldest futures exchange was formed and it was named the Chicago Board Of Trade [CBOT]. Thereafter, many such exchanges were formed all around the world. 

The trading is done by contracts, which include 

1.) spot trading, where the delivery takes place immediately or in minimum time

2.) forward contract, where the buyer and seller agree to a price for a commodity, which is to be delivered at a mutually agreed date and quantity

 3.) futures contracts, where the conditions are the same as the forward contract, but are transacted through a futures exchange. 

There are many agricultural and industrial commodities now being traded in the commodities market. The list of the most common commodities and the exchanges they are normally dealt through are given below:

The Indian commodity market is estimated to be around Rs 11,00,000 crore, which includes agricultural commodities (rice, wheat, soya, groundnut, tea, coffee, jute, rubber, spices, cotton,
etc), precious metals (gold and silver), base metals (iron ore, aluminum, nickel, lead, zinc, etc) and energy commodities (crude oil and coal).

"The aspiration of a strong commodity market is based on the fact that commodities-related industries constitute about 58% of the country's GDP," says Jignesh Shah, managing director, MCX, a Mumbai-based independent commodity exchange.

Currently, the various commodities traded across the exchanges clock an annual turnover of Rs 2,90,000 crore, which includes the high-volume crude oil trade listed recently on the MCX. This figure can grow multifold with the introduction of futures trading and participation of more retail investors.

According to the commodity research site indiancommodity.com, the commodity market is expected to grow at an annual rate of 40% over the next five years. The lucrative commodity futures volumes touch $800 mn a day on an average. This is expected to grow at 100% every year. With FIIs eying the Indian markets in a big way, commodities can also gain unfathomable depth.

With a minimum investment of as low as Rs 5,000 and more than 42 traded commodities on offer for the investor, commodity trading is a hot option. The trading has been further boosted by the emergence of a highly evolved national commodity markets on the lines of NSE.

Besides the three national exchanges -- National Commodity and Derivative Exchange, the Multi Commodity Exchange and the National Multi Commodity Exchange -- there are 22 more exchanges and trading boards recognised by Forward Markets Commission (FMC), the market regulator.

Several high-profile equity brokers have become members with NCDEX and MCX. The names include Refco Sify Securities, Sharekhan, ICICI Commtrade, ISJ Comdesk and Sunidhi Consultancy, and are already offering commodity futures services. Some of them also offer trading through the Internet just like the way they offer equities.

With the WTO regime ushering in a new era in global trade, commodity trading becomes a global phenomenon as price issues cannot be manipulated easily, hence futures and options can be used in trading.

India being a major user of crude oil, (which is the world’s most traded commodity), edible oil and gold can become the hub of such commodities. Every year, India buys $25bn worth of crude oil, $8.5bn worth of gold and $9 bn of edible oils.

WORLD WIDE MOST TRADED COMMODITIES

Most Traded Commodities Worldwide

1. Crude Oil
When we say “CRUDE OIL” it doesn’t only mean Hydrocarbon liquid but a lot more than that. The crude oil producers are normally the Middle East; it is being extracted out of the ground, transported to refineries through pipelines and then shipped to tankers to the markets all over the world. It is one of the top ten traded commodities of the world; in fact it is the most traded commodity.

The most commonly traded commodity is Crude Oil, and its various derivatives such as heating oil and gasoline. These commodities are mostly traded in the New York Mercantile Exchange [NYMEX], ICE Futures, the Dubai Mercantile Exchange [DME] and the Central Japan Commodity Exchange [C-COM]. 

2. Coffee
It might be a great surprise for you but coffee really is the second most common traded commodity of the world. It is produced in South Asia, Asia and Africa and the main consumers are United States and Europe. You can see the fact that 2.25 billion cups of coffee are consumed in the world every day.

The second most traded commodity is Coffee [value wise]. Coffee is mainly traded through the New York Board of Trade [NYBOT], the Kansai Commodities Exchange [in Osaka, Japan], the Singapore Commodities Exchange [SICOM] and Euronext [London]. 

3. Natural Gas
Natural gas is traded a lot because it is the only thing used everywhere from cooking to heating water in winters. It has a volatile marketing style because of its price fluctuation.

Natural gas is traded in the New York Mercantile Exchange [NYMEX] and ICE Futures.

4. Gold
Gold has always been valuable, the reason is may be the beautiful color or maybe it is rare, for women may be it’s the essential part of them or anything else. It is a very important trading commodity these days.

Gold are traded in the New York Mercantile Exchange [NYMEX], the Brazilian Mercantile and Futures Exchange [BMF], the Dubai Gold and Commodities Exchange [DGCX], the National Commodity Exchange Limited [in Karachi, Pakistan] and the Tokyo Commodities Exchange [TOCOM]. 

5. Brent Oil
After crude oil it is the second most traded oil product in the market. This oil is basically taken from the North Sea and Norway and areas like Europe and Africa use Brent oil more as compared to crude oil.

6. Silver
Aesthetic Usage, Silver investors and Industrial usage; these are the three markets of silver. Bill Gates and a few more people have invested a lot on silver. It is traded a lot and is one of the most popular traded commodities of the world.

Silver are traded in the New York Mercantile Exchange [NYMEX], the Brazilian Mercantile and Futures Exchange [BMF], the Dubai Gold and Commodities Exchange [DGCX], the National Commodity Exchange Limited [in Karachi, Pakistan] and the Tokyo Commodities Exchange [TOCOM]. 

7. Sugar
It is the seventh most popular traded commodity, because everybody likes sweet. There is not any place in the world where it is not traded.

Sugar is also commonly traded in the New York Board of trade [NYBOT] and Euronext.

8. Corn
This one is the most versatile agricultural products; it has quite massive demand from all over the world. It is also referred as “YELLOW GOLD”. N70% of the corn is grown in United States; around 80 million acres are dedicated for its production. Hence, we can surely know why it is important.

Corn is traded in the Chicago Board of Trade [CBOT], the Kansai Commodities Exchange [in Osaka, Japan], the Risk Management Exchange [RMX-in Hannover], the Minneapolis Grain Exchange, the Winnipeg Commodity Exchange [WCE], The Tokyo Grain Exchange [TGE] and Euronext. 

9. Wheat
This is the 9th most popular traded commodity; it is the most important food grain in the world. Its worldwide prominence is the major reason of it being a commodity.

Common commodities in agriculture include wheat, corn, maize, oats, rice, soybeans and they are traded in the Chicago Board of Trade [CBOT], the Kansai Commodities Exchange [in Osaka, Japan], the Risk Management Exchange [RMX-in Hannover], the Minneapolis Grain Exchange, the Winnipeg Commodity Exchange [WCE], The Tokyo Grain Exchange [TGE] and Euronext. 

10. Cotton
It is a fibrous material, it is strong and durable. Its demand is always greater, so when the demand is more the thing is traded more. That is why it is at the tenth position.

YELLOW PEA MARKET IN INDIA

Market of dry pea in India

India is the major player in the world market when it comes to the pulse scenario. The country is among the major producers, the largest consumer and also the largest importer of pulses in the world. Due the fact that India is the second most populated country of the world and majority of the population depending upon pulses as food, the advantage of being one of the largest producers of pulses in the world is wasted. That is why the country has to rely on pulse import to satisfy the domestic demand. Regarding peas production, India produces around 800000 metric tons of dry peas annually and stands 4th among the major pea producing countries of the world. Uttar Pradesh produces the major share of the country’s produce.

The consumption level for yellow pea in the country is so large that being a dominant producer; India is not able to satisfy its domestic consumption demand. The reason for the large demand is the ever-increasing population of the country and more and more people depending on the dry pea as their staple diet. This is the reason that India also has to import high levels of pulse. This makes India one of the largest importers of the crop. As a matter of fact, pea is heavily imported into the country and accounts for around 40% of the total pulse import of the country. Most of the yellow pea traded in the country is imported from various pea-exporting countries and the imports account up to around 9 lakh tons annually. Imports of yellow pea into India have shown a rising trend as the imports have increased sharply since last few years. The exporters from which India imports yellow peas are

• Canada
• Australia
• Myanmar
• France

Market influencing factors

• Flow of information in the value chain of peas
• Black marketing and Hoarding
• Crop situation in the major pea producing countries
• Prices of the competitive pulses in the country like chickpea, tur, urad etc

Major trading centres

The major trading centres of yellow pea in India are

• Mumbai (Maharashtra)
• Jalgaon (Maharashtra)
• Latur (Maharashtra)
• Akola (Maharashtra)
• Indore (Madhya Pradesh)
• Bhopal (Madhya Pradesh)
• Vidisha (Madhya Pradesh)

Yellow pea is traded in Indian commodity exchanges namely

 National Commodity & Derivatives Exchange ltd 

 Multi Commodity Exchange of India ltd.

YELLOW PEA WORLD SCENARION

World Pea scenario:

Pea is one of the most popular food crops in the world as they are very nutritious and also an easy to grow crop. Dry peas usually grow in the cooler areas of the world unlike the other major pulses of the world. But they have a universal appeal, as they are required in all over the world for consumption. They are excellent source of proteins, carbohydrates and other vitamins, which are good for human consumption and also for the livestock consumption. Due to the regular developments, a number of varieties of pea have been discovered. Dry peas are naturally dried peas that are consumed in soups, stews and various other cuisines. Dry peas further have two sub categories namely dry green peas and dry yellow peas.

The world production of dry peas in the world is somewhat concentrated as a few countries only are indulged in the production of the major share of world’s produce. The world production hovers around 12 million tons, Canada being the largest producer among all. The dry peas are consumed in the split form as it takes lesser time to cook after splitting. The pulse that is so rich in nutrients is mostly used as a food but it is also used as a manure crop, forage crop, and it also produces a pea starch that is used in industrial application. Around 30-35% of the world production of dry peas is traded in the world market, making it up to a quantity of around 2.5 million tons. The list of major countries that export dry peas leaded by Canada is given below

• Canada (1042427 metric tons)
• France (528207 metric tons)
• United States of America (118964 metric tons)
• Australia (91795 metric tons)
• United Kingdom (61608 metric tons)
• Germany (49779 metric tons)
• Russia (43624 metric tons)
• Ukraine (43239 metric tons)
• Denmark (33023 metric tons)
• Tanzania (27076 metric tons)

As the production of this pulse in the world is concentrated, over 140 countries are relying on the imports of dry peas. Still, the imports are also concentrated as most of the countries produce pea and have lesser population to feed. The major dry pea importing countries with their import figures pertaining to the year 2003 are

• India (700017 metric tons)
• Netherlands (267523 metric tons)
• Belgium (248923 metric tons)
• Spain (190305 metric tons)
• Bangladesh (115069 metric tons)
• Italy (87651 metric tons)
• China (76301 metric tons)
• Pakistan (64395 metric tons)
• Cuba (41780 metric tons)
• United States of America (39622 metric tons)

INDIAN YELLOW PEA PRODUCTION

Production of dry pea in India

India is one of the largest producers of dry pea in the world and stand at the 4th place in the list of major dry pea producers. The Indian production contributes to around 7% in the world’s total produce with the production figures of 800000 metric tons. Uttar Pradesh is the major field pea producing state in India producing about 60% of the country’s produce. The other major pea producing states in India are

• Uttar Pradesh
• Madhya Pradesh
• Bihar
• Punjab
• Himachal Pradesh

India is the major player in the world market when it comes to the pulse scenario. The country is among the major producers, the largest consumer and also the largest importer of pulses in the world. Due the fact that India is the second most populated country of the world and majority of the population depending upon pulses as food, the advantage of being one of the largest producers of pulses in the world is wasted. That is why the country has to rely on pulse import to satisfy the domestic demand. Regarding peas production, India produces around 800000 metric tons of dry peas annually and stands 4th among the major pea producing countries of the world. Uttar Pradesh produces the major share of the country’s produce.

The consumption level for yellow pea in the country is so large that being a dominant producer; India is not able to satisfy its domestic consumption demand. The reason for the large demand is the ever-increasing population of the country and more and more people depending on the dry pea as their staple diet. This is the reason that India also has to import high levels of pulse. This makes India one of the largest importers of the crop. As a matter of fact, pea is heavily imported into the country and accounts for around 40% of the total pulse import of the country. Most of the yellow pea traded in the country is imported from various pea-exporting countries and the imports account up to around 9 lakh tons annually. Imports of yellow pea into India have shown a rising trend as the imports have increased sharply since last few years. The exporters from which India imports yellow peas are

• Canada
• Australia
• Myanmar
• France

YELLOW PEA CULTIVATION IN INDIA

Yellow Pea cultivation

According to the archeologists, the green pea, also known by the name of garden pea originated in China or Egypt dating back to around 10000 years. The clues of the presence of peas have been found from the archeological sites of the Middle East. The people in china believe that the father of agriculture in china, Shu Nung, discovered peas 5000 years ago. Also, there are many legends and stories related to the origination of peas. One of the legends suggests that pea occurred in the world as a punishment to the humans when Thor, the lord of thunder, sent dragons to foul all the wells on the earth with the help of peas. The earliest references of peas in charred form were obtained from the Egyptian tombs of the 12th dynasty. The crop was domesticated shortly after wheat and barley were domesticated.

The peas were not a popular food crop initially as the other pulses were preferred. In the middle ages, people use to dry these seeds and use to keep it with them to consume it at the time of famine. After America was discovered, the peas was introduced into the country as the people who use to sail to America from Europe kept with them dry peas as they are nutritious and require less space for storage. In fact, it was one of the first crops that were planted into America by the Europeans.

The people in Europe started consuming peas properly as late as in the 17th century. The popularity of wheat shot up at that time and it became a staple food crop for many of the countries.

Pea is a crop that grows well in cool and moist weather. Unlike other vegetable crops, it cannot survive warm temperatures and only yield efficiently if cultivated in cool conditions, though; heat tolerant varieties have also been developed. It takes around 2 months for the planted seed to reach maturity level. The soil should be well drained for the pea plant to prosper without direct contact with fertilizer. Though most of the varieties of pea are self-supportive, once the seed germinates and the plant shows up, it can be tied to a stick or pole for better support.

Different varieties of peas are harvested differently. The garden peas are ready for harvest when they are swollen. The other pea that include sugar snap pea are harvested every 1 to 3 days and the snow peas are picked when the pod reaches it maximum length generally after 5 to 7 days of flowering. In India, pea is an important rabi crop as it is sown in the winter season.

Dry pea is an annual pulse, legume crop that is consumed throughout the globe. It is usually used in split form and forms integral part of various cuisines of the world. The pea is obtained as seeds from the pod that occurs on the pea plant and is dried in the sunlight to produce dry pea. This crop is considered to be the best crop for the purpose of nitrogen fixing of the soil as it converts nitrogen into nitrogen nodules in large numbers, keeping the soil fertile. Two types of dry pea are cultivated – dry green cotyledon and dry yellow cotyledon. 

URAD MARKET IN INDIA

Urad Market in India

The production of urad in India hovers around 1.3 to 1.5 million tons annually. It is approximately 10% of the total pulses produced in India. Madhya Pradesh leads the production figures of this crop in India. Urad’s consumption pattern is quite dispersed as it is used in most of the regions in India. Though the per capita consumption of urad has declined over the years, consumption level of this crop is too high to be fulfilled by the country’s domestic production. That is why it has to rely upon imports from other countries. The countries that export urad to India are

• Myanmar
• Thailand
• Singapore
• Australia

Around 90% of the imports are contributed by the imports from Myanmar and the rest of the countries fill up the remaining gap in the country’s demand & supply. India imports around 35000 tons of black gram and the trend in these imports has been increasing constantly.

Influencing Factors

• Weather conditions in the country
• Hoarding and Black-marketing
• Crop situation in other countries especially Myanmar
• Prices of the other competitive pulses

Major trading centre

In India, urad or black gram is traded at the following trading centers

• Mumbai (Maharashtra)
• Jalgaon (Maharashtra)
• Latur (Maharashtra)
• Akola (Maharashtra)
• Nanded (Maharashtra)
• Dhulia (Maharashtra)
• Indore (Madhya Pradesh)
• Bhopal (Madhya Pradesh)
• Vidisha (Madhya Pradesh)
• Sagar (Madhya Pradesh)
• Jhansi (Madhya Pradesh)
• Delhi
• Chennai
• Kanpur (Utar Pradesh)
• Hapur (Uttar Pradesh)
• Hatras (Uttar Pradesh)
• Ganjdhundwada (Uttar Pradesh)
• Aligarh (Uttar Pradesh)
• Hydrabad (Andhra Pradesh)
• Vijaywada (Andhra Pradesh)
• Gulbarga (Karnataka)
• Sirsa (Haryana)
• Jalandhar (Punjab)
• Ludhiana (Punjab)
• Sangrur (Punjab)
• Madosa (Gujarat)
• Himmatnagar (Gujarat)
• Talod (Gujarat)
• Rajkot (Gujarat)
• Junagarh (Gujarat)

Urad is also traded at the various commodity exchanges in India namely 

National Commodity & Derivatives Exchange ltd

Multi Commodity Exchange of India ltd 

National Multi Commodity Exchange of India ltd.

URAD PRODUCTION IN INDIA

Production of Urad in India

India is the largest producer of black gram in the world. The annual production of urad in India is around 1.5 million tons contributing around 10% of the total quantity of pulses produced in India. The major states that produce black gram or urad in India are

• Madhya Pradesh
• Uttar Pradesh
• Punjab
• Maharashtra
• West Bengal
• Andhra Pradesh
• Orissa
• Tamil Nadu
• Karnataka

The area under the cultivation of urad in the country is about 2.5 million hectares. Madhya Pradesh is the leading producer of black gram in India. Two varieties of urad are produced in the country – Desi and T9. Most of these urad producing areas in India produce Desi urad. Also there is a significant price difference between these two types of the pulse, Desi being more expensive than T9.

Pulses dominantly constitute the staple diet of the people in India. India has always been the largest producer, consumer and importer of pulses. The same trends follows in the context of Urad or the black gram. Urad has been consumed widely in India since very long. It is one of the most important and highly prized pulses in India. Due to the fermenting capability of this pulse, it is used widely in fermented foods that are the specialty of South Indian cuisine.

Indian Urad market

The production of urad in India hovers around 1.3 to 1.5 million tons annually. It is approximately 10% of the total pulses produced in India. Madhya Pradesh leads the production figures of this crop in India. Urad’s consumption pattern is quite dispersed as it is used in most of the regions in India. Though the per capita consumption of urad has declined over the years, consumption level of this crop is too high to be fulfilled by the country’s domestic production. That is why it has to rely upon imports from other countries. The countries that export urad to India are

• Myanmar
• Thailand
• Singapore
• Australia

Around 90% of the imports are contributed by the imports from Myanmar and the rest of the countries fill up the remaining gap in the country’s demand & supply. India imports around 35000 tons of black gram and the trend in these imports has been increasing constantly.

URAD EXPORT AND IMPORT SCENARION

World Scenario:

Urad or black gram is a highly prized pulse crop in many countries. It is a crop that is grown in warm climatic conditions on an opportunity crop basis. This dull grey-black colour crop constitutes an important part of the recipes and cuisines of many countries in South and Southeast Asia. It contains a wide variety of nutrients and is popular for its fermenting action and thus it is largely used in making fermented foods. In some countries it is called Black Matpe.

The production of urad is mostly confined to the Asian countries as their tropical climates and soil type suit the pulse’s cultivation. The largest producer of this pulse is India followed by Myanmar and Thailand. But being the largest producer of urad does not take India to a comfortable situation, as it is also the largest consumer of the black gram in the world and its total production is not able to fulfill its domestic consumption demand. The incapability of Indian production to satisfy its domestic demand makes it the largest importer of this pulse as well. The major consuming cum importing countries of black gram or urad are

• India
• China
• Pakistan
• Japan
• Thailand

These importers of this pulse get their gap in demand and supply filled up by getting supplies from the following exporting countries

• Myanmar
• Thailand
• Singapore
• Australia

Urad is the largest exported pulse crop among the total beans and pulses. The total exports of urad in the world figures around 62.5 million tons contributing to a 40% share in the total quantity of the beans and pulses.

Urad producing countries

• India
• Myanmar
• Thailand
• Singapore
• Japan
• Bangladesh
• Canada
• Iran
• Greece
• East African countries

The production of this crop has been confined to Asian countries as the climatic conditions and the soil types in these countries suit the conditions required by this crop to support its survival. India is the leading producer of Urad in the world with the production of around 1.5 million tons and is the leading consumer also. Myanmar and Thailand follow the Indian lead in the list of urad producing countries, though Myanmar produce black gram mainly to export this pulse and it even exports it to the leading producer of this crop.