Mumbai, April 15 (Commoditiescontrol):The Indore market witnessed a second consecutive week of declining Chana prices during the week ending on April 15, 2023. The participation of millers in the crushing process remained need-based, as there was a sluggish offtake in dal-besan. The prevailing sentiment was cautious as the central and state governments increased pressure on market participants to disclose their stocks on the government portal. In addition, the government indicated that it might regulate the price if there is any abnormal rise in pulse prices from the current level. Consequently, the stockiest refrained from making new purchases, and mills made need-based purchases, reducing Chana's demand and price.
The Chana prices in various markets also showed a weak trend. The prices traded weak by Rs 125/100Kg at Akola in bilty trade, Rs 100/100Kg down at Bikaner, and Rs 50/100kg of Rajasthan origin at the Delhi market.
However, the Tanzania-origin Chana price remained more or less unchanged at Rs 4,800-4,950/100 kg due to limited millers' purchases.
In addition to this, Chana dal prices also traded weak at the Akola market, by Rs 200/100Kg, due to sluggish offtake. Similarly, in Indore, the prices fell by Rs 100, and in Jaipur, they fell by Rs 75/100 kg. The besan prices at the Mumbai APMC market also remained weak, declining by Rs 50/100Kg.
As of April 15th, 2023, during the Rabi season, the National Agricultural Cooperative Marketing Federation of India (NAFED) has procured 9,27,311 metric tons of Chana under the Price Support Scheme (PSS) at the Minimum Support Price (MSP) of Rs 5,335.
Trend:The prices of Chana are expected to stay rangebound due to various factors. Firstly, there has been a significant increase in domestic arrivals. Secondly, the demand for dal and besan is currently weak, which could be further impacted by the conclusion of Ramjan.
Additionally, the overall sentiment in the pulses market is bearish as the government has warned of potential price regulation if they rise from their current levels.
Furthermore, with the government holding a substantial quantity of 14 lakh tonnes of Chana from the last crop year and 9 lakh tonnes for the current season, and with ongoing procurement, the government's stockpile of Chana is likely to increase further. Due to this reason, market participants are hesitant to take any big exposure in the market.
The Chana price is expected to have a limited downside despite various negative factors. This is because of the government's procurement policy which has led to fewer arrivals in the open market. Furthermore, Chana prices are below the MSP, providing some cushioning. Additionally, the government is unlikely to sell its Chana stocks due to potential weather impacts on the upcoming monsoon, and Kharif pulses production. The government will likely maintain a buffer stock to prepare for such eventualities.
As the largest stockist, the government's decisions will determine the direction of the Chana market in the long run. However, in the near term Chana market is expected to remain stable with the support of government procurement.
(By Commodities Control Bureau: 09820130172)
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