Chana

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%.

Madhya Pradesh government is likely to commence procurement of chana at minimum support price from Tuesday to support the dwindling prices. Procurement would begin from Apr 10. Unlike mustard and masur, quantity of procurement for chana has yet not been fixed by the government.

Chana prices in Delhi and Akola were unchanged because of subdued demand from dal millers, and as many sellers stayed away from the market.

National Agricultural Cooperative Marketing Federation of India had procured 128,297 tn of chana under the price support scheme across Telangana, Karnataka, Maharashtra, Rajasthan and Andhra Pradesh. The federation bought 8,762 tn in Rajasthan, 5,785 tn in Maharashtra, 18,505 tn in Andhra Pradesh, 63,901 tn in Karnataka, and 31,344 tn in Telangana as market prices in these states have slipped below the minimum support price of 4,400 rupees per 100 kg, inclusive of a 150-rupee bonus.Prices of chana have plunged due to poor demand from dal millers and rise in supply of the new crop in key markets.

Prices of chana rose in Delhi due to lower supplies and expectation of an increase in demand from dal millers in the coming days. Prices in Indore fell as demand from dal millers was lower, however a sharp downside in prices was restricted as the government may start procurement of the pulse.

India’s chana output in 2017-18 (Jul-Jun) is seen rising 17% to 9.0 mln tn due to a rise in acreage and prospect of better yields.

Chana prices fell in Delhi and Bikaner because of expectation of a rise in arrivals in the coming days.

Prices of chana were up in Delhi because of demand from dal millers and procurement of the pulse by the government in Madhya Pradesh. Bulk buying by the stockists at lower rates is seen supporting prices. The most active April futures of chana on the NCDEX were up 1%.

Prices of chana rose in Delhi due to higher demand from dal millers and domestic stockists, as well as a fall in supply. In Delhi, prices of chana were up 25 rupees. The rise in prices was also because the Madhya Pradesh government it would buy chana at the minimum support price, not under the price-deficit Bhavantar Yojna scheme.

The government has approved procurement of 100,000 tn chana in Andhra Pradesh and 3,000 tn from Tamil Nadu during the ongoing rabi season. The government will also purchase 32,000 tn moong from farmers in Andhra Pradesh. The minimum support price, at which the government procurement takes place, is 4,400 rupees per 100 kg for chana and 5,575 rupees per 100 kg for moong. The move comes in the wake of high domestic supplies due to a bumper pulses output in 2016-17 (Jul-Jun) and anticipation of a record high crop this year as well. Currently, black chana attracts a customs duty of 60% and imports of moong have been capped at 300,000 tn per year.

Prices of chana rose in Delhi, owing to improved demand from dal millers and domestic stockists, as well as a fall in supply.

Chickpeas For 2017-18, Exports are expected to rise sharply from 2016-17, due to increased import demand from Pakistan, Turkey and the US. As a result, carry-out stocks are expected to remain tight. The average price is expected to be higher than last year, due to the world shortfall of quality chickpeas. US chickpea production is estimated by USDA at a record 313 Kt, a 27% increase from 2016-17. For 2018-19, the area seeded is expected to rise from 2017-18 because of lower carry-in stocks and the potential for good returns. As a result, production is expected to rise to 145 Kt. Supply is forecast to rise sharply from 2017-18 despite the lower carry-in stocks. Exports are forecast to be lower but carry-out stocks are expected to rise. The average price is forecast to be lower, due to expectations of larger world supply.

Prices of chana rose slightly in the benchmark market of Delhi due to lower supplies and on improved sentiment after the government announced export incentive. A 7% duty credit incentive on export of desi chana for a period of three months, effective Wednesday, was announced. This is aimed at disposing off huge stocks of chana, thus lifting prices of the commodity.

Prices of chana in the key market of Bikaner, Rajasthan, fell as arrivals of the new crop commenced in the region. In Delhi, the benchmark market, prices of chana were unchanged.

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.