Chana

The prices of gram are continuing steadily due to lower stock prices in the market. For the past one month, the price of gram has risen about Rs 1,000. The demand for gram flour is rising due to increased demand for gram flour in the monsoon. After the increase in gram, the market price has more than the minimum support price. The MSP government has fixed Rs 4,400 per quintal for the Rabi season of gram in the crop year 2017-18. The demand of consumers is increasing in demand due to increase in prices of vegetables. The demand for mills remained, whereas the pipeline is empty because the government agencies have a large stock of gram.

Price of chana in Delhi rose due to improved demand from dal millers amid low arrivals. In Delhi, the benchmark market, chana was sold 50 rupees higher at 4,650 rupees per 100 kg. Arrivals of chana in Delhi were unchanged at 300 tn, but were less than the daily average of 525-600 tn. In Akola, prices were unchanged at 4,300 rupees per 100 kg. The August contract of chana on NCDEX fell 1.07% to 4,332 rupees per 100 kg.

Chana futures gain 3.68% on rising demand. Chana prices rose 3.68 per cent to Rs 4,169 per quintal in futures trade as participants created fresh positions, driven by rising demand from dal mills in the spot market. Besides, tight stocks positions following drop in arrivals from producing regions, too, fuelled the uptrend. The rise in chana prices to surging demand in the spot markets against restricted supplies from the producing regions.

Chana is trading at Rs 3,932 per quintal at the benchmark Bikaner market. In the coming days, prices are expected to head towards Rs 3,950-4,000 per quintal. Low availability in free market coupled with strong demand from processors would continue to drive prices higher in the near term.

Canada’s agriculture agency has lowered the average price view of chana or chickpeas for 2017-18 (Aug-Jul) on expectation of higher acreage and thereby higher output in 2018-19. Agriculture and Agri-Food of Canada’s April report has forecasted average prices of Canadian chana to decline to $1,070-$1,100 per tn from $1,120-$1,150 view in March. Average price forecast of Canadian chana in 2018-19 is estimated to decline to $1,000-$1,030 per tn on year. Output of chana in 2018-19 is estimated to rise to 145,000 tn from 92,000 tn in 2017-18. The agency has kept the price outlook for Canadian peas and masur unchanged from its March forecast. Peas price in 2017-18 is estimated at $240-$270 per tn, while for masur it is estimated at $480-$510 per tn. In 2018-19 average peas price is forecast at $220-$250 per tn, while that of masur is estimated at $455-$485 per tn.

Chana prices in Delhi were down as arrivals in markets of Madhya Pradesh increased sharply, despite government procurement. Farmers are currently not interested in selling their produce to the government because of a delay in payment and as farmers are being asked to bring fair average quality stocks.

Madhya Pradesh government has announced an incentive of 100 rupees per 100 kg on minimum support price of chana to registered farmers of the commodity. The incentive is valid for the crop harvested in 2017-18 (Jul-Jun) rabi season. The state government is giving the incentive to the farmers registered under Krashak Samruddhi Yojana. The minimum support price and the incentive would be credited directly into the accounts of farmers.

Chana prices were up in Delhi due to improved demand from dal millers and lower arrivals of the commodity in the market. The most-active May contract on the NCDEX was up 0.7%. Higher marking of chana in the April delivery is also indicating revival of the demand.

Chana prices in Delhi were down because of subdued demand from the dal millers. Sufficient stocks at the ports and higher supply of chana is seen weighing on the sentiment.

Futures contracts of chana fell on the NCDEX because of sluggish demand from the dal millers in the domestic market and reports of slow progress of government procurement. A weak sentiment is seen due to talks that Maharashtra government is insisting local traders buy chana at the minimum selling price, causing trade participation to reduce

Chana prices in Delhi eased further because of subdued government procurement. On NCDEX, the most-active May contract was down 19.

Madhya Pradesh aims to procure 2.1 mln tn chana and 7.5 mln tn wheat at minimum support price. Most states are procuring chana to jack up prices, which have remained below the support price of 4,400 rupees per 100 kg amid bumper output in the last few months. The target for wheat procurement has been increased from the earlier estimate of 6.7 mln tn due to a similar revision in output of the grain.

Futures contracts of chana fell on NCDEX due to higher stocks in NCDEX-accredited warehouses. Traders were also cautious after licenses of eight traders were cancelled for buying chana below minimum support price. The most-active May contract was down 1.54%.

Stocks of chana, barley and coriander rose at the exchange warehouses ahead of staggered delivery period in the April contract.

Prices of chana were up in Delhi due to improved demand from domestic stockists and dal millers after a recent fall in prices. Procurement of pulse by the government and a fall in arrivals also supported prices of the commodity.

India did not import any chana in February from Australia as compared to 675 tn in January and 20,999 tn in December after the former levied a customs duty. India is traditionally, Australia’s biggest chana importer. India had imposed a 60% customs duty on chana in March to curb cheaper imports and support prices. Overall, exports of chana from Australia in February were at 50,832 tn as compared to 58,190 tn in January. However, exports from Australia to other destinations particularly Bangladesh have increased in the above months.

Chana prices were down in most markets because of subdued demand from the stockists and dal millers. The arrivals of chana in Delhi was at 300 tn and in Bikaner it was at 100 tn, both unchanged. Traders are waiting for the government procurement in Madhya Pradesh which may support prices slightly but sharp gains are unlikely because of bumper output of the pulse this season. The most active May chana futures on the NCDEX was down 1%.