Chana surges on low arrivals

Prices rose in the range of Rs 75-125 a quintal on Thursday.

The chana spot market across the country witnessed a sudden surge on Thursday following a steady demand, low arrivals and farmers holding back the new stocks. Market sources, however, termed the bullishness as a short-term trend.

Chana prices rose in the range of Rs 75-125 a quintal. In the Latur market, the prices crossed the Rs 2,300 a quintal mark on Thursday, quoting at Rs 2,350 from Rs 2,250 a quintal a day before. In Delhi, they went up by Rs 75 to Rs 2,450 a quintal. 
 

CHANA SPOT PRICE                                                         Rs/quintal
Centre	Wednesday	Thursday	% chg
Delhi	2,375	2,450	3.16
Indore	2,225	2,300	3.37
Latur	2,250	2,350	4.44
* Six months

The rise in prices is despite the fact that there has been no major changes in crop estimates for the current season, which stands at 55 lakh tonne. The chana arrivals that began in February have not yet picked momentum.

A low arrival rate seems to be taking its toll over the chana market. "The current arrivals are around 6,000 bags a day, whereas they should be around 10,000 bags a day according to the current demand," said Sanjay Darak, a Latur-based trader. He added that the prices might see a further jump of Rs 100 a quintal till arrivals become normal.

In Delhi, a large consumption centre in the country, the arrivals are poor at around 4,000 bags, when they should be over 5000 bags.

Arrivals from Uttar Pradesh are to start in the next 15 days and arrivals in Rajasthan have been delayed by over two weeks, thanks to recent rains. The country expects around 8 lakh tonne of chana from the state.

Rahul Vohra, an Indore-based trader said, "Prices of chana now completely depend on the Rajasthan's crop arrivals, which have already been delayed and are expected to reach the market only by mid-April. If arrival rates continue like this, prices are going to go up." Indore currently receives less than 7,000 bags, whereas, normally by this time, it should have been over 25,000 bags.

"We were expecting a good chana supply. But the weak arrival rate is taking the market up," Vohra added. In Indore, chana spot prices shot up to Rs 2,300 a quintal from Rs 2,225 in a single day.

Market sources said stockists had not entered the chana market yet and the pulse stock had been stuck at the farmers' end. "Compared to the last season's high chana prices, farmers are unwilling to supply at the current rates. They seem to anticipate that chana prices would support from the other bullish pulses," an analyst said.

On the NCDEX, chana futures contract for April delivery closed at Rs 2,237 a quintal on Thursday against the previous close of Rs 2,202 a quintal.