Chana Prices Soar on Supply Worries.

CHANDIGARH | PUNE: Owing to a delay in new crop reaching the markets, chana prices have surged by 8% to Rs 2,379 a quintal in the past one week. A poor production in Australia could further inflate the prices to Rs 2,600 in the coming months, say traders.
Normally, chana supplies arrive in markets by January along with imports largely from Australia and Canada, putting pressure on prices. This year, retail prices have increased from Rs 23.50 a kg a month ago to Rs 25 a kg now due to slack supply.

“The prices have been supported by good fundamentals and technicals. This year, unseasonal rains in Andhra Pradesh and Karnataka have forced many farmers to re-sow their crop which would now delay the harvest by over a month. We would see arrivals only by early February,” said Ankita Parakh, research analyst, Geojit Comtrade.

Traders said there was a production loss of 60% in Andhra Pradesh and Karnataka but acreage and production were likely to increase in Maharashtra, Rajasthan and Madhya Pradesh.

But the current cold wave in the north could possibly damage the crop. According to the data released by the central agriculture ministry, chana acreage has increased by 7.2% as on December 24 last year to 87.79 lakh hectares.

Australia grows close to 7 million tonne of the pulse a year but floods have damaged the crop this season. The country sells chana to Bangladesh, Dubai and Pakistan apart from India.

“India was expected to import 1.5 lakh tonne chana from Australia this month. However, we will barely get only 50,000 tonne. If cold waves affect production in India, there may remain a shortage of one lakh tonne in supply,” said a dal importer and miller from Maharashtra, who will import 30,000 tonne of the 50,000 tonne of the pulse coming from Australia.

Supplies to the Delhi spot market have been lower while demand is expected to pick up in the coming wedding season following Sankrant. In Delhi’s Naya Bazaar Anaj mandi, chana trading company Siliguri Associate owner Sunil Baldewa said there was a spurt in demand for the pulse due to soaring vegetable prices.

“In the coming months, we see demand increasing due to the marriage season and an increase in the consumption of besan. With very limited stock in the market, prices are bound to touch Rs 2,650-2,700 per quintal by end of January in Delhi,” he said. Current prices in Delhi were at Rs 2,450 per quintal.

Traders say the enforcement of stocking limit to a maximum of 100 tonne in Delhi, 300 tonne in Rajasthan and 150-300 tonne in Maharashtra for pulses was further increasing prices in the market.

On Tuesday, the chana February 2010 delivery contract on NCDEX opened at Rs 2,542 per 100 kg which was a decline of 0.16% against the previous settlement.

Source : economictimes.indiatimes.com