Sluggish demand from gram flour mills pulled down chana prices by Rs 50 a quintal on Tuesday. However, chana futures rose marginally.

In the spot market, kanta chana ruled at Rs 4,850-4,900 a quintal, while desi chana ruled at Rs 4,700. Kanta chana had risen to Rs 5,250 a quintal about a fortnight ago. Subsequently, profit booking at the higher rate and lower demand from flour mills due to import of Australian chana brought chana down to as low as Rs 4,850 a quintal last week. The Australian chana costs Rs 5,000-5,100 a quintal.

Traders expect chana to rise in the near future on demand during the Ganesh Chaturthi festival this month. In fact, it may gain Rs 100 or more, said chana trader Prakash Vohra.

The Associated Chambers of Commerce and Industry of India in its recent reports have also forecast a steep rise in prices of chana and its dal during Diwali this year, because of higher import prices of lentils and shortage.

Due to a lower crop, chana prices in the past one year have gone up by Rs 1,800 a quintal. Last year, chana on September 1 was ruling at Rs 3,200 a quintal.

Chana dal ruled stable even as demand for pulses remained sluggish. In the spot market, average dal in mandis here ruled at Rs 5,925-5,950 a quintal, medium dal at Rs 6,025-6,050, while bold dal (bold) ruled at Rs 6,250-6,275 a quintal.

Dollar chana, which had risen to Rs 8,200 a quintal few days ago on strong export demand, has dropped in the past two days to Rs 7,500-7,800 a quintal amid arrival of 600 bags, as local and export demand has fallen. In the past three days, dollar chana has declined by Rs 400 a quintal. Similarly in the container, dollar chana prices have declined by Rs 100 a quintal on weak export demand. On Tuesday, dollar chana (42/44 count) ruled at Rs 8,900 a quintal, 44/46 count at Rs 8,700 a quintal, 46/48 count at Rs 4,600, 58/60 count at Rs 7,300 a quintal and 60/62 count at Rs 7,200 a quintal.

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