Chana prices fall on Monday

Chana prices after a sharp fall on Monday have bounced back today owing to hopes that government disbursement may reduce the inventories. Government’s nodal agencies have nearly 3.0-3.2 mln ton of chana which includes this years’ procurement of 2.03 mln ton. Centre has today extended the date for provision of 5 kgs of grains and 1 kg of chana to the economically weaker section and the needy until November. Government had started this scheme- Pradhan Mantri Garib Kalyan Ann Yojana in April for a period of three months. The scheme will cover 800 mln poor people for free. The grains and pulses to be provided under the above scheme is in addition to the rice or wheat that the government provides under the National Food Security Act. The government has already disbursed 579,000 tons of pulses so far to the states.

Prices of chana on Monday had fallen because NAFED, the government nodal agency said that it will start its sales from Jul 1. Now the investor’s focus have now shifted to the price at which the government will release its inventories. NAFED had released the previous stocks at 3800-3900 rupees per 100 kg. If it releases its stocks above 4,200 rupees, prices may find support while if it releases below 3,900 rupees, prices in the local market may correct.