Chana

Chana futures on the NCDEX fell for the second day ahead of the launch of price deficit scheme in Madhya Pradesh, and also as new crop arrivals began in the state. Price guarantee under the state government’s Bhavantar scheme has made farmers less concerned about the selling price despite a significant lowering of bids by traders.

Farmers in Australia have been asked to continue with the sowing of chana, despite fears that India, the largest market for the commodity, may increase its import duty to 100%, as experts think the import hike might be temporary. India recently increased its import duty on chana to 60% from 40%. The tariffs were first imposed in December and raised further last month. Expects the tariffs to be revoked after general election in India in April next year.

Australia’s chana exports in January are estimated at 62,781 tn, down 22% on month. The fall in exports is attributed to lower imports by India, the biggest market for Australian chana. In January, India imported a total of 675 tn of the commodity, down from 21,000 tn in December.

Futures contracts of chana rose on NCDEX due to renewed demand from dal millers. On NCDEX, the most-active April contract was at 3,721 rupees per 100 kg, up 0.98%. A rise in prices of the pulse in the key spot markets also supported chana contracts on the bourse. A rise in arrivals was, however, insufficient to meet demand which supported chana prices.

Chana prices were up in Delhi and Indore on demand from dal millers and on low arrivals. The most active April futures on the NCDEX were up 0.8%.

The Centre has approved the procurement of 400,000 tn of chana and 800,000 tn of mustard in Rajasthan to support falling prices. The move comes in the wake of the state government requesting the Centre to approve procurement in Rajasthan, as prices of the pulse and the oilseed started falling below their minimum support prices. In major markets, prices of both the commodities declined because of a spike in arrivals of the fresh crop, while demand from millers was subdued.

Prices of chana fell in Delhi because of low demand from millers. Sentiment is likely to remain bearish because of expectation of record high production. The most-active April futures on NCDEX were down 1.6%.

Australia’s January chickpea exports at 62,781 tonnes dropped 22 per cent from the revised December total of 80,161 tonnes. The drop reflects the impact of the tariff imposed by India in December, which saw January sales to that market total 675 tonnes, down from 21,000 tonnes in December and 185672 tonnes in november.

The Maharashtra government has started online registration of farmers for the purchase of chana at the minimum support price (MSP). Chana prices have been sluggish and hovering between Rs 3,300 per quintal and Rs 3,500 per quintal in the market, while the MSP has been fixed at Rs 4,250 per quintal with a bonus of Rs 150 per quintal taking the total price to Rs 4,400 per quintal. The government has set up around 185 procurement centres in the state. The Centre has decided to procure some 3 lakh tonne chana under the Price Stabilistation Scheme ( PSS) from the state and begun the online registration process for farmers from last week onwards. Chana procurement is expected to continue till May 29.

Prices of chana rose in Delhi due to a rise in demand from dal millers. The most-active April futures of chana on the NCDEX was up 12 rupees.

Prices of chana rose in Bikaner, Rajasthan, due to lower supplies amid a slight increase in demand from dal millers. Inventories in Rajasthan have fallen as the season draws to an end, and new crop arrivals will only start from mid-March.

Prices of chana rose in Delhi due to improved demand from dal millers and domestic stockists. In Bikaner, chana was quoted at 3,850 rupees per 100 kg, unchanged. The rise in prices was also because the central government has raised the import duty on chana for the third time so far in 2017-18 (Apr-Mar) to 60% from 40%. The most active March futures on the NCDEX were up 32 rupees.

The Madhya Pradesh government has extended the deadline for farmers to register for rabi crops under its pricedeficit scheme by 12 days to Mar 24. The earlier deadline for farmers to register for the scheme ‘Bhavantar Bhugtan Yojana’ was Mar 12. For 201718 rabi season, the state has included key crops like chana, masur and mustard seed and onion in the scheme.

Prices of chana fell in Delhi because of lower demand from dal millers amid steady supply. Prices in Bikaner, a key market, were up due to expectations of higher demand. The March contract on NCDEX was up 0.6% from the previous close.

Roughly 20% of India’s total import deals of about 400,000 tn for desi chickpeas this year are under a cloud due to the imposition of import duty on chana. Deals for import of about 40,000 tn desi chickpeas are being renegotiated, after the duty. Another 40,000 tn of pulses, including Desi chickpeas and yellow peas, is being diverted to China, as import duties have made imports unviable. India imposed 30% import duty on chana in December and then raised it to 40% on Feb 6, to check the fall in local prices. The deals to import desi chickpeas, most of which are coming from Australia, were inked at over $700 a tn last year. With the import duty now in place, and the fall in local prices, traders have faced a loss of about $350 a tn.

NCDEX chana down 1% on sluggish demand from millers

The imposition of 30% import duty on chana by the government recently is likely to hit deals of around 150,000 tn of the commodity that has been largely contracted from Australia. About 40,000-50,000 tn Australian chana out of the 150,000 tn shipments in transit have been diverted to other destinations such as Dubai, Pakistan and Bangladesh. A sharp fall in domestic chana prices despite a levy of import duty has made these deals unfeasible now.

Chana prices were slightly up in Delhi due to improved demand from dal millers. The most active January contract traded up by 19 rupees from the previous close.

Chana contracts on the National Commodity & Derivatives Exchange were volatile due to mixed cues following the government’s move to scrap all restrictions on exports and remain silent on import duty on chana and masur. After the government announced the measure, the December contract of chana on the NCDEX rose but later closed 1.8%.