Chana Prices Fall Across Major Centers; Merta Bucks The Trend

Mumbai, 09 May 2024 (Commoditiescontrol): Chana prices continue to slide lower across major trading canters on Thursday due to weak demand in Chana dal and Besan due to weak consumtion duting summer. The decline is caused by subdued demand at the higher price levels. However, Merta markets turned defiant with prices adding Rs 200 per quintal to trade at Rs 5,800 to Rs 6,200. Arrival of desi gram in Indore mandi increased by 1,146 quintals to 1,566 quintals.

Delhi markets has maintained its weak posture. Chana from MP and UP lines, too remain subdued. Sources within the local industry cited diminished interest from dal and besan manufacturers as a key factor behind the price correction.

In Indore bilty trade, Vishal quality gram fell by Rs 50 to Rs 6100. There was a slight fall of Rs 25 on its upper level and the price was Rs 6150 per quintal. No change has been recorded in the prices of chana dal.

Although prices experienced a downturn, the reduction was less pronounced compared to the preceding increase. Delhi markets saw a dip in prices for both the MP and UP lines, with retail demand for dal softening post a price hike. Additionally, millers favored conservative transactions, contributing to the overall decrease.

Traders say that the summer season, coupled with a pause in the wedding season, has significantly reduced demand for chana.

Industry experts remain optimistic, anticipating minimal downside risk for chana prices. Strong overall demand, limited supply, and a recent decline in arrivals suggest positive market sentiment. Market reports further indicate sellers are slowing activity at current price levels.

To address supply concerns, the Indian government allowed duty-free Chana imports until October 31st. However, limited global availability and rising international prices due to India's import policy have dampened import enthusiasm. This is likely due to a cost disparity between domestic and international prices.

With the upcoming monsoon season and easing of money supply post-election next month, improved demand for Chana is anticipated, potentially leading to a price recovery.

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