Week Ahead:Chana prices expected to remain strong due to reduced arrivals, crop damage, and NAFED's procurement at MSP.

Mumbai, March 25th (Commoditiescontrol): During the week ending March 25th, 2023, Chana prices continued to rise steadily for the fourth consecutive week at the Indore market, as mills increased their purchases due to good offtake in Chana dal and besan. The recent rain and hail had an adverse effect on Chana crop quality and caused damage in Rajasthan, and Madhya Pradesh, resulting in lower arrivals pressure this week. In addition, the rise in prices can be attributed to the improved market sentiment due to increased government procurement at the Minimum Support Price (MSP) in several states, including Maharashtra, Karnataka, Gujarat, and Andhra Pradesh.

In contrast, Rajasthan-origin Chana prices traded weak at the Delhi market, dropping by Rs 25-75, while local buyers preferred to purchase new Chana of Maharashtra and Rajasthan origin at lower rates, around Rs 5,175. Meanwhile, Tanzania-origin Chana prices rose by Rs 50 in Mumbai, reaching Rs 4,600-4,750/100 kg. Due to good counter demand at Jaipur and Akola markets, Chana dal prices increased by Rs 50-100/100Kg. However, Chana dal prices remained unchanged in the Indore market due to limited need-based buying. Branded Chana dal besan prices also rose by Rs 100/100Kg at the Mumbai APMC market due to good demand.

During the Rabi season of 2023, as of March 25th, the National Agricultural Cooperative Marketing Federation of India (NAFED) has procured 1,83,948 metric tons of Chana through the Price Support Scheme (PSS) at a Minimum Support Price (MSP) of Rs 5,335.



As per technical chart - Chana Delhi (Rajasthan line) - A breakout above resistance (Rs 5,250) may trigger a new leg higher towards Rs 5,500 - Click here

Trend: In conclusion, the China market is expected to remain strong in the near future due to the increased pace of procurement at MSP by Nafed and the good offtake in Chana dal and besan. However, arrivals are expected to slow down due to the closure of domestic markets and the impact of recent weather events on the Chana crop yield and quality. The expected shortfall in overall pulses supply by year-end, coupled with the lower prices of Chana, is likely to shift demand to Chana, making it a favourable option to substitute for other pulses. Therefore, stocking Chana could be a sound investment, given the lower rates and minimum risk involved.

(By Commodities Control Bureau: 09820130172)