Chana awaits import cues

Prospects of supply diversion to Pakistan likely to influence prices

Whether India will get its share of chana from Australia or will it get diverted to Pakistan? The answer to the question may determine the prices of the pulse in the near future.

For now, the prices of chana futures are on the decline. However, analysts opine that the downward trend will only be for a short term period, with the prices beginning to surge from November.

"As mandis across the country have not opened, owing to the festival holidays, there is a possibility of arrivals on the higher side, which may further dip the prices. But, the market is set to be bullish by the middle of next week," said commodities analysts.

According to market sources, the chana output in Australia is stipulated at 225,000 tonne against the earlier estimate of 274,000 tonne, a reduction of around 50,000 tonne.

Indian importers are of the view that the output may see a decline of 50 per cent, which will take the prices up. The country is set to import 140,000 tonne of chana from Australia. However, aggressive demand from Pakistan may divert around half of the Australian imports to that country, said the sources.

Commodities analysts confirmed the information, but refused to comment on the figures. They added that the situation will become clear once the total output of the crop in Australia is known by mid-November.

So far, there is no shipment from Australia. "The coming one-and-a-half months will see the shortage of chana in the domestic market. We will start getting imported chana only in the middle of December," said K C Bhartiya, president, The Pulses Importers' Association.

He added that the prices are bound to go up amid the shortage. The country already has a shortage of around 8 lakh tonne of chana and the next domestic crop is expected only in February.

A Mumbai-based pulses importer said the prices of imported chana are rising on the back of shortage in output. "At present, the Australian chana is quoted at $625 a tonne, whereas the Tanzanian chana is around $650 a tonne," he said.

On Thursday, the prices of November futures on National Commodity and Derivatives Exchange (NCDEX) closed at Rs 3,130 against the last week's close of Rs 3,215 a quintal, registering a decline of 2.64 per cent.

Similarly, December futures too closed at Rs 3,139 against the last week's close of Rs 3,236, a decline of Rs 97 a quintal.

India produces around 38 lakh tonne of chana per annum. However, the domestic consumption is over 50 lakh tonne, which is met by imports.