Dollar chana soars 11%

Price of kabuli chana today went up about 11 per cent from Rs 2,700 to Rs 3,000 a quintal, following the withdrawal of export ban.The move is likely to benefit farmers, who have been growing this particular crop.

"As 75 per cent of the chana variety goes to exports, the move is likely to drive up the prices further," said a Karvy analyst. Of the 60 lakh tonne chana that the country grows, dollar or kabuli chana accounts for about 10 per cent. Kabuli chana production has increased from 2-3 lakh tonne to 6-7 lakh tonne over last couple of years due to higher prices compared with desi chana.

The variety is primarily grown in Maharashtra, Andhra Pradesh and Madhya Pradesh.

The government has lifted a ban on exports of dollar chana to check their falling prices and protect the farmers' interest. In June last year, the government imposed a blanket ban on export of pulses to control rising prices.

The department of commerce had received representations to allow export of this particular variety, as it is mainly grown for exports. Since the ban was announced, prices slipped from Rs 4000 a quintal to Rs 2700 a quintal.