In chickpeas (desi gram), a profitable performance is anticipated in India before the arrival of the new crop. The current scenario, with limited pipeline stock and unfavorable central pool prices, suggests a potential rise of $6.02 or €5.50 per quintal.
Production Plunge and Price Peaks
This season witnessed desi gram production at approximately 7.5 million metric tonnes, a staggering 37 percent drop from normal consumption levels. Despite government sales, the price of Rajasthani gram has soared. Stockpiling by traders, coupled with low customer support, hindered profit realization. However, government interventions in June sought to stabilize prices. The outlook suggests a profitable desi gram business before the new crop.
Market Awaits The New Crop As There Is Reduced Sowing
Reduced sowing in Karnataka, Andhra Pradesh, and Rajasthan, coupled with water scarcity, hints at lower future production. Despite the arrival of seasonal vegetables, the demand for pulses and gram flour is emerging. Shortages loom as pipeline goods diminish, while the supply of desi gram decreases by 20-21 percent on average per mandi in a fortnight.
Wedding Demand Surges, Balancing Panic and Prosperity
A sense of panic pervades the business terrain, yet the surge in demand for weddings, fueled by Dev Uthani Ekadashi (onset of weddings), tempers concerns. Compared to other pulses, desi chana proves more economical for common consumers, sparking increased consumption.
Bullish Hopes and Production Plights
In challenging conditions, the market hints at a bullish resurgence. The current season witnesses a 30-31 percent production decline across major states. Slow trends in chickpea cultivation redirect farmers to peas, causing a drop in sown areas. The reduction in Rajasthan’s sowing led to a substantial decline in overall production. With the minimum support price at $6.44 or €5.88 (after interest charges), the Rajasthani gram business rekindles profitability.
While challenges persist, the market demonstrates an inherent ability to weather storms and find pockets of growth. The potential for a profitable horizon emerges as the days pass, and it becomes crucial for stakeholders to stay attuned to the changing chickpea market. The balance between panic and prosperity is delicate, but it’s within these delicate gaps that opportunities for strategic decisions and profitable ventures lie.