A sharp jump in pulses prices and reduced arrivals in the spot markets of Madhya Pradesh has slowed down processing at dal mills reducing production capacity by over 20 per cent.
Daily arrivals of pulses like tur, urad and chana have reduced in the spot markets amid apprehension of lower production lifting pulses prices. Lower arrival of pulses has affected availability of raw material for dal mills exploring outstation markets for purchasing pulses.
Dal millers said, pulses processed in MP are about 1.5-2 per cent more expensive than neighbouring states due to transportation and mandi cess of 1.70 per cent levied by the Madhya Pradesh government.
Madhya Pradesh is a major centre for dal mills with around 700 dal mills in the state of which 160 in Indore.