Chana (gram) futures gained on supply shortages and lower carryover stocks on the National Commodities Exchange (NCDEX) on Thursday. Spot chana prices ruled firm at Indore. Improved buying ahead of the festive season helped sustain the uptrend.
Chana for August delivery increased 1.27 per cent or Rs 60 to Rs 4,786 a quintal towards close on the NCDEX.
In the spot market at Indore, it was quoted at Rs 4,990 a quintal.
According to analysts, the slow progress in the sowing of kharif pulses is an additional factor weighing on the minds of traders. The delay in kharif pulses sowing has led to fears that sowing of chana, also a kharif crop, could be delayed.
Chana production in the last season that ended in June was affected by indifferent weather in December. The yield and production have been lower this year and the short supply is seen extending to November.
Prices have been rallying from around Rs 3,950 a quintal in mid-June due mainly to fears of shortage.
The weak rupee has also contributed to the surging trend since imports have become costlier in view of the rupee dropping sharply against the dollar.