Desi chana (Bengalgram) prices are hovering at seasonal highs of around ₹8,000 per quintal in the key consuming markets like Delhi and Jaipur on pick-up in festive season demand. The prices are likely to start easing when the Australian harvest begins from mid-October, trade sources said.
Chana prices have been bullish throughout the 2024 marketing season on lower-than-expected rabi 2023-24 season crop and have sustained the uptrend on the festive season demand. The government, in a bid to boost the supplies, had removed the import duty on chana in early May. Chana had attracted import duty of 66 per cent.
Prices of chana in Delhi, which ruled around ₹6,325-6,350 levels in early May, are now hovering between ₹7,950-8,075 levels, an increase of 26-27 per cent over the past four months. “The prices have moved up further due to pick-up in demand ahead of the festive season. However, when the Australian crop starts arriving mid-October, prices will start easing,” said Rahul Chauhan of IGrain India. Due to the various steps taken by the government, prices of other pulses are largely under control, he said.
Anticipating a shortfall in chana crop, the government had earlier allowed import of yellow peas at zero duty and extended the import window till October 31, 2024. Yellow peas are considered a near substitute for chana that constitutes a significant portion of the India’s pulses basket.
Production lower
As per the second advance estimates, the production of chana during 2023-24 was lower at 121.61 lakh tonnes (lt), down from the previous year’s 122.67 lt, but the actual crop size was even lower, sources said.
Chauhan estimates that import of yellow peas from December last year till July at over 20.75 lt. The import of desi chickpeas during April-July are estimated to be around 65,507 tonnes over 1,341 tonnes in the same period last year.
The India Pulses and Grains Association (IPGA) in an update on chana for the week ended August 31, said some markets saw prices drop due to low buying interest and cheaper alternatives, while others remained strong as sellers held back stocks expecting prices to rise with coming festival demand. This week there’s been a lot of trading activity as resellers are selling off their stocks, IPGA said, adding that demand is likely to taper off as festival needs are met. The lower-priced yellow peas could also put pressure on chana prices at higher rates. Prices might ease or stabilise as Australian chickpea prices fall with lower quotes due to increased output from good weather, it further added.
Imported chana prices from Tanzania are hovering around ₹7,400-7,550 levels in Mumbai while the Australian chana prices in Mumbai are ruling around ₹7,750 levels.