Mumbai, May 13 (Commoditiescontrol):During the week ending on May 13th, 2023, domestic Chana's price traded steady at the benchmark market in Indore. This was due to limited miller buying, as the demand for dal and besan was slow, and there were ongoing arrivals.
In the Delhi market, the price of Rajasthan-origin Chana decreased by Rs 50/100Kg. The reason behind this decline was the thin mills purchasing at higher rates due to the low demand for Chana dal and the wide variation in the supply quality. The quality variation was a result of adverse weather conditions during the harvest.
Similarly, the prices of Chana in Akola's bilty trade eased by Rs 25/100Kg during the week due to thin local and outstation mills' purchases. At Bikaner, the Chana price remained unchanged at Rs 4,775.
In the Mumbai market, the prices of old and new Tanzania-origin Chana remained unchanged at Rs 4,750/100 kg and Rs 4,850/100 kg, respectively.
There was a marginal decline in Chana dal prices at Jaipur due to a dull offtake, while Chana dal prices in Indore and Akola remained unchanged due to thin demand. Similarly, besan prices at the Mumbai APMC market also remained steady.
As of May 13th, 2023, during the Rabi season, the National Agricultural Cooperative Marketing Federation of India (NAFED) has procured 19,15,085 metric tons of Chana under the Price Support Scheme (PSS) at the Minimum Support Price (MSP) of Rs 5,335 per metric ton.
Trend: Chana prices are expected to remain stable and are unlikely to decrease from the current levels due to several factors. Firstly, mills' consistent demand for crushing purposes provides steady need-based support.
Secondly, farmers prefer selling their Chana stock to Nafed at the Minimum Support Price (MSP), leading to lower arrivals in mandis. These lower arrivals further contribute to the stability of prices.
Thirdly, the export demand for Chana from countries like Bangladesh and others continues to drive up the overall demand for Chana. The sustained international demand further strengthens the price levels.
Moreover, Nafed plays a significant role in the market as it actively procures Chana. With already procuring 19 lakh tonnes of Chana in the current season, Nafed is expected to procure an additional 8-10 lakh tonnes. This means Nafed may procure a total of 28-30 lakh tonnes of Chana for the current season, which accounts for nearly 30% of the current crop. Such large-scale procurement by Nafed creates artificial scarcity in the market and may pressure prices upward.
Limited Kharif pulses production, and the government's low buffer stock make it unlikely for Nafed to sell procured Chana in the open market. The government's priority is to maintain an ample buffer stock of pulses, including Chana, to mitigate the potential impact of a poor monsoon.
Therefore, Nafed's actions and stockpile will significantly influence the market direction. With an estimated total holding of 40-45 lakh tonnes of Chana, comprising current-year procurement and old stock, Nafed possesses sufficient reserves to dictate the market direction.
(By Commodities Control Bureau: 09820130172)
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