Week Ahead: Chana prices likely to trade firm on increased demand

MUMBAI, 26 Nov (Commoditiescontrol): Prices of domestic variety Chana gained during the week ending to Nov 26th, 2022, on mills participation as good offtake of Chana dal was witnessed due to ongoing marriage season.

Further, the commodity is benefited by the less availability of good quality Chana, expectation of lower sowing acreage this year and hopes of Government approval for futures trading. Also, slow selling by Nafed in Maharashtra and higher bid price to purchase Nafed Chana tender in Rajasthan had pushed prices higher.



As per the latest Rabi sowing data India 2022-23 Rabi Chana acreage was a tad up 0.34 % (compared to the same period last year) as of Nov 25 at 67.14 Lakh Ha Vs 66.91 Last Year. But market participants expect final rabi sowing numbers for Rabi chana 2022-23 to be less than last year.

As per trade sources, sowing acreage under Kabuli Chickpea is relatively higher as compared to Chana. Kabuli Chickpea offer relatively better returns when comapred to Chana.



Similarly, Tanzania Chana price firmed up for second straight week by Rs 75 at Rs 4,350-4,550/100Kg on increased millers buying, following firm cues from domestic market. However, supplies from Tanzania will be negligible due to disparity.



Trend: Chana price can find further support for short term period due to less availability of good quality Chana, expectation of lower sowing acreage this year, slow selling by Nafed in Maharashtra and higher bid price to purchase Nafed Chana tender in Rajasthan. Hopes of Government approving trading in futures market could help in bulding optimism. But, overall, Chana prices are unlikely to sustain at higher rates as farmers, the stockiest and the government hold adequate stock. Regular selling by government to create sufficient storage capacity before the start of the next Rabi season and stockiest-trader at every rise will restrict up move in price. Chana harvest may begin after mid of January, 2023 at Karnataka. Market participants will be keeping a close watch on sowing acreage this year. On a monthly trend Delhi Chana (Rajasthan line) quoted higher by 5.10%, up 4.57% on weekly basis while down by 2.37% on annual basis.

(By Commoditiescontrol Bureau; +91-22-40015513)