Chick peas strike it rich

Chick peas or 'chana' has been a hit on the futures trading segment of the electronic exchanges.

The cumulative volume on the National Commodity and Derivatives Exchange (NCDEX) was almost Rs 2.50 crore in just four days of trading beginning Monday. NCDEX expects to average a daily trade of around Rs 6 crore in the first year of trading and around Rs 35-40 crore within 2-3 years.

National Multi Commodity Exchange (NMCE) has been offering futures in 'chana' since May 2003 and has clocked a cumulative futures trading volume of Rs 20 crores till date.

The estimated value of the national trade in 'chana' is around Rs 3000 crore only for the varieties chosen for futures trading. On a conservative estimate, futures trade could go upto 50 per cent the underlying physical market.

Although several states in India grow 'chana', NCDEX permits trade only in Rajasthan desi (RD) and Madhya Pradesh kantawalla (MPK) varieties. RD is the basis for most varieties. MPK constitutes approximately 60 per cent of the production in Madhya Pradesh.

Quality of 'chana' varieties differ even within districts. RD and MPK varieties offered standard quality and were felt to be best-suited for futures.