Finance Update

Chana: Chana prices near three-month high

Agrawal claimed that chana prices may touch Rs 4,620 a quintal.

Production was also expected to be less compared to the previous year.

ET Bureau | Apr 01, 2019, 08.45 AM IST

New Delhi : Chana prices are nearing a three-month high as supplies appear to be tighter coupled with firm demand. Restricted import from Australia due to high import duty is also attributed to the bullish trend, said traders who are confident that prices will firm up.

At the Indore wholesale market, chana prices jumped by over 10 per cent in the past three months to trade at Rs 4,350 a quintal on Friday. The chana contract for delivery in June on the National Commodity & Derivatives Exchange (NCDEX) is being quoted at Rs 4,460 a quintal.

With increasing demand from packaged Indian snacks (namkeen) makers and rising awareness for protein-rich food among vegetarians, chana consumption is on a rise in India.

Production was also expected to be less compared to the previous year, said commodity companies’ officials and traders. According to the second advance estimate of the government, chana production is likely to be 103.2 lakh tonnes in 2018-19 which is down 8 per cent due to drop in area by 10 per cent compared to the previous year.

“Crop arrivals across Rajasthan, Madhya Pradesh and Maharashtra are less compared to the previous year and there is lower stocks with the trade which are supporting prices,” said Suresh Agrawal, chairman of the All India Dal Mill Association that is headquartered at Indore.

Agrawal claimed that chana prices may touch Rs 4,620 a quintal, which is the minimum support price for chana for the 2018-19 season with the Centre and state agencies procuring the pulses.

“Ïn March only, chana prices has moved up by almost 5.61 per cent due to lower arrivals and less imports. Production is also less compared to last year,” said Anuj Gupta, deputy vice-president of commodity research at Angel Commodity. Chana has been attracting 60 per cent import duty since March 2018, said Gupta. “In 2018-19 (April-January), imports are down 85.1 per cent to 1.43 lakh tonne compared to 9.58 lakh tonne in the previous year,” he said.

Source

Prakash Poojary
Business Analyst

Leave a Reply