Chana futures were trading over 3 per cent lower on Wednesday due to the revival of rains in the growing areas and subdued demand in the spot markets that fuelled profit-booking.

On the NCDEX, the October contract declined by 1.3 per cent to Rs 4,388 a quintal while the November and December deliveries slipped by 2.1 and 3.15 per cent to Rs 4,263 and Rs 4,120 respectively. The far-month January contract hit a 4 per cent maximum lower circuit.

Increased supply from Madhya Pradesh and Rajasthan also put pressure on chana prices in the futures.

Slack demand in the domestic market against increased arrivals, mainly from Madhya Pradesh and Rajasthan, led to a fall in chana prices. Continued weak demand from millers and concerns over low soil moisture at the time of rabi sowing also added to the negative sentiment.

Moreover, improved production in Australia — the largest supplier of chickpea to India — is aiding the trend. In Australia, chana production rose by 70.5 per cent to 8.27 lakh tonnes from 4.85 lakh tonnes the previous year.

In the spot market at Indore (M.P.), chana was quoting down at Rs 4,542.8 a quintal.

Related Topics