Chana prices stay above MSP as farmers hold on to produce

Chana is cultivated primarily during rabi season

After remaining subdued for some time, the price of chana (gram) has gone above the minimum support price of Rs 4,000 a quintal in wholesale spot markets.
 
Looking at the projection of chana production for 2016-17 at more than 9 million tonnes, the rise in prices has been cheerful for farmers.
 
Traders give two reasons for this. First, output is likely to be lower than the government estimate of 9.08 million tonnes, according to the third advance estimate, and, secondly, farmers and traders who had purchased chana when prices were high are holding on to their stocks in