Week Ahead: Chana prices to get support from mills buying at lower levels and NAFED procurement at MSP.

Mumbai, April 23 (Commoditiescontrol):The Indore market witnessed a third consecutive week of declining Chana prices during the week ending on April 22nd, 2023.Millers demand in crushing process remained need-based, as there was a sluggish offtake in dal-besan and ongoing arrivals. The prevailing sentiment was cautious as govt officials visit and conduct stock surveys at major pulses producing areas.

Chana prices in the Delhi market continue to remain weak, with a drop of Rs 100/100kg for Rajasthan-origin chana. However, prices in Bikaner have increased by Rs 100/100kg due to mills buying and below-expectation arrivals at producing centers in Rajasthan, caused by lower yields resulting from weather anomalies earlier this year. Meanwhile, prices in Akola's bilty trade have mostly remained unchanged.

Similarly, the Tanzania-origin Chana price both old and new fall by Rs 50-100 at Rs 4,750/100Kg and Rs 4,850/100Kg.

In addition to this, Chana dal prices also eased by Rs 25/100Kg at Jaipur due to thin offtake. On other hand, in Indore and Akola, the prices ruled unchanged. The besan prices at the Mumbai APMC market also remained weak, declining by Rs 25/100Kg.



As of April 23rd, 2023, during the Rabi season, the National Agricultural Cooperative Marketing Federation of India (NAFED) has procured 12,77,525 metric tons of Chana under the Price Support Scheme (PSS) at the Minimum Support Price (MSP) of Rs 5,335 per metric ton.



As per technical chart - Chana Delhi (Rajasthan line) - More near term weakness appears probable / we see the next potential support at Rs 4,900. Click here

Trend: The price of Chana is expected to receive support at lower rates due to need-based buying by mills for the crushing process. This is because the new crop arrivals in Rajasthan and Madhya Pradesh were below expectations, mainly due to adverse weather conditions leading to lower yields.

Additionally, farmers were keen on selling their stock to Nafed at MSP, resulting in fewer arrivals in the local market. Despite being cheaper than other pulse prices, Chana prices are still trading below the MSP of Rs 5,335/100Kg. Stockiest refrained from making bulk purchases due to the government holding a substantial quantity of 14 lakh tonnes from the last crop year and 13 lakh tonnes for the current season.

Therefore, the price and direction of Chana will depend on Nafed's Chana procurement quantity and liquidation of its stock. As the biggest stockiest in the market with control of almost 30% of the supply, Nafed's influence on prices is likely to increase further with ongoing procurement.Therefore, NAFED will significantly influence the market trend this season.

(By Commodities Control Bureau: 09820130172)