Chana Prices Surge Despite Free Imports, Tight Supplies Persist

Mumbai,07 May 2024 (Commoditiescontrol): Despite the removal of import duties, Chana prices continue to soar in India on Tuesday, for the second straight session, fueled by persistently tight supplies. It seems, the recent opening of free imports in the country has not mitigated the upward trend, with prices sharply rising even in exporting nations like Australia. As a result Chana imports have become more expensive.

Market reports indicate a slowdown in seller activity amidst escalating prices.

In business deals, Desi gram witnessed a notable increase of Rs 100 to Rs 150, contrasting with a Rs 100 drop in auction trade. In Indore, desi Chana prices increased by Rs 150 per quintal, while local gram prices plummeted by the same margin in the Kisan Mandi. This decline was consistent with the previous day's market behavior. This decline was attributed to supply constraints. Arrival of local gram dropping significantly from 280 quintals to 420 quintals, leading to a Rs 100 reduction in auction prices.

However, stability was reported in Delhi's chana prices for both MP/UP lines, though demand for dal decreased as prices escalated.In business dealings, Chana Kanta observed a notable uptick of Rs 59 at the lower level and Rs 100 at the upper level, reaching Rs 6400 to Rs 6500 per quintal. Vishal quality gram surged by Rs 100 to Rs 6200 to Rs 6250 per quintal, while Dinky gram remained steady at Rs 5600 to Rs 5800 per quintal.

Experts attribute the price surge in Indore to the influence of Delhi Mandi, where gram prices remained high, while a decrease in demand for gram flour and gram dal followed the conclusion of auspicious marriage times.

To address supply concerns, the Indian government has permitted free Chana imports until October 31. Despite expectations of substantial imports, Chana prices continue to rise due to the persistent imbalance between demand and limited supply. Industry experts foresee continued high prices in the foreseeable future, driven by strong demand and constrained availability.

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