Black Gram Prices Explained

The increasing demand for black grams in established Asian cuisine, particularly in the preparation of stews, soups, and fermented food products drives up its prices.

This surge in demand positively impacts the market, supported by the growing awareness among the general public regarding its benefits, causing the fluctuation of black gram prices. The lifting of Sri Lanka’s import ban to address domestic needs creates another profitable market of the commodity. Presently, India contributes to 70% of global production. Myanmar and Thailand follow distantly.

Why are black gram prices fluctuating?

1. Weather Conditions

Weather-related conditions cause fluctuations in the supply of black gram which in turn affects the product’s general availability on the market. Therefore, changes in supply have the potential to affect black gram prices.

For example, the intense rains that India experienced this year impacted producers’ interests which resulted in higher domestic purchases by millers across multiple states.

2. Currency Exchange Rate

Fluctuations in exchange rates affect the cost of importing and exporting black gram as it is a globally traded commodity. If a major importing nation’s currency depreciates relative to a significant exporting nation, then the cost of imports may increase.

For instance, the local gram market in Myanmar frequently changes its retail price due to fluctuations in currency exchange rates.

3. Supply and Demand

When the demand for black gram surpasses its available supply, prices tend to rise due to increased competition among buyers.

Conversely, if there is an oversupply of black gram in the market, prices may decrease as sellers adjust to attract buyers and clear their inventories.

For example, the price of black gram is declining in the Indian market as a result of new black grams being added to the market every day.

4. Foreign Policies

Changes to trade agreements, import/export restrictions, taxes, or other foreign policies affect the cross-border flow of black grams.

Additionally, the rise in tariffs on imports of black grams has the potential to decrease domestic supplies and raise prices. One factor that affects market prices is India’s commitment to buy specific quantities of black grams from Myanmar every year.

Which variables impact the price of a black gram?

• Weather Conditions
• Currency Exchange Rate
• Supply and Demand
• Foreign Policies
• Market Trends
• Economic Conditions

Where does black gram come from?

Black gram is a native legume of South Asia and a popular bean in India, where it is well known for its use in Indian cuisine. It is harvested in several steps.

1. Timing – Crop maturity is identified by farmers based on the color of the pods as mature pods have a black tint and fully grown seeds inside.

Generally, harvesting occurs approximately 90 to 120 days after sowing, varying based on the specific variety and local growing conditions.

2. Cutting – Black gram is harvested by cutting it at the base, using sickles or other cutting tools. Additionally, extra care is applied to protect the plants to ensure successful production.

3. Drying – The harvested crop is spread out in the field to dry after cutting and it is done for several days to reduce the moisture content.

4. Threshing – This is done after the crop is properly dried to extract the seeds from the pods. Traditional approaches include beating the dried plants while modern methods may utilize mechanical threshers.

5. Winnowing – After the threshing process, the mixture of seeds and chaff undergoes winnowing. The heavier seeds are left behind when they are tossed into the air and the wind sweeps away the lighter chaff.

6. Cleaning – The seeds go through additional cleaning procedures to get rid of any remaining debris or contaminants.

7. Packaging – The final step involves packaging the cleaned and processed black gram seeds for storage or transport.

What are the uses of black gram?

Black gram is abundant in protein, vitamin B, potassium, calcium, iron, niacin, thiamine, and riboflavin. Additionally, it provides dietary fiber, isoflavones, copper, magnesium, zinc, and phosphorus.

Some of the industrial applications of black gram include:

1. Flour Production – The procedure is to transform black gram into flour, an essential ingredient in many recipes. This flour is used to make baked goods, appetizers, and thickening agents in some recipes.

2. Fermented Products – Black gram frequently plays a role in the creation of fermented items. For instance, Urad dal, a type of black gram, is a fundamental component in making idli and dosa, traditional fermented South Indian foods.

3. Papad Manufacturing – Its flour is a prevalent component in crafting papads, a well-liked crispy Indian snack. They are made by rolling the dough into thin sheets and sun-drying it after mixing flour with other ingredients.

4. Cosmetic Industry – Black gram includes extracts or byproducts in some skincare and cosmetic products to maximize its potential benefits for the skin.

What is the future price of a black gram?

The extensive use of black gram in the food and beverage sector, particularly in some Asian countries is the main factor driving its potential profitability in the global market. This commodity is largely utilized in making stews, soups, and fermented food products that are slowly integrated into the international market. 

Additionally, the rising application of natural ingredients in the nutraceutical sector opens opportunities for black gram. The commodity is important in treating hormonal imbalances, joint pains, colic, and liver issues. Furthermore, black gram finds another market in sustainable construction crucibles such as ceramics and metal vessels as a natural binder. 

Overall, the black gram price will be $1.34 per kilogram in 2028 and its market size is projected to reach $5.0 million by 2028, exhibiting a CAGR of 6.64%.