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Traders had estimated high production of chana (gram) this year but the arrival in the market is less.
Demand for the commodity, according to a leading broking firm in Ahmedabad, has been good from states in north and north-east India.
"Demand from Punjab, Haryana, Delhi and other North-East states has been very good this month and the demand may extend in April as quality of current crop arrival is not very good. In this month, price of the commodity has increased about Rs 125-150 per quintal on the back of good demand from stockists and millers," said Rajanbhai of Dalal Surajbhan Khandelwal and Company, a leading broking firm based in Ahmedabad.
Even Australian Chana production report-edly falling by 23% supported market sentiments. Significant imports at low rates (with Dollar remaining weak vs Re) have prevented any strong uptrend for Pulses.
Chana sowing had increased following a good monsoon last year across the country but hailstorm and unseasonal rainfall in Gujarat, Maharashtra, Madhya Pradesh and Uttar Pradesh has damaged the crop considerably. The damage was mainly reported from Madhya Pradesh, the largest chana-producing state in the country. The commodity was also affected in neighbouring Gujarat and Maharashtra.
Chana procurement was set to begin in Madhya Pradesh early this week but another spell of rainfall has delayed the process.
"Madhya Pradesh received another spell of rainfall in some places which has resulted in additional moisture in the commodity. The procurement centres may reject the commodity with more than 14% moisture and hence, we have given more time to farmers," said a senior official in MP Markfed (MP State Cooperative Marketing Federation Limited).
"Now the procurement would begin from April 1," the official said. MSP for Chana for marketing year 2014-15 is Rs. 3100 per quintal.
Good quality chana in Gujarat is presently quoted between Rs 2,800 per quintal and Rs 3,250 per quintal while dull quality chana is traded between Rs 1,800 per quintal and Rs 2,700 per quintal. In Maharashtra, good quality chana is priced between Rs 3,000 per quintal and Rs 3,375 per quintal. On an average, chana price across India is ruling in the range of Rs 1,750 per quintal to Rs 3,350 per quintal.
According to trade estimates, about 20-25% chana crop was damaged in India due to unfavourable weather.
As per second advance estimates made by the Central government, chana production in India is estimated to be about 9.79 million tonnes for 2013-14 as against 8.83 million tonnes in 2012-13. Chana was sown over an area of 10.21 million hectares compared to 9.5 million hectares a year ago on the back of normal monsoon and good soil moisture.
According to data provided by Indian Pulses and Grains Association (IPGA), domestic consumption of chana is a function of price and based on availability of substitutes like yellow peas. For 2013-14, forecast consumption is about 9-9.2 million tonnes.
