Chana (chickpea or Bengal gram) prices are ruling below the minimum support price (MSP) levels even as arrivals are set to gather pace from Madhya Pradesh in the days ahead. Prices have improved over the past few days after NAFED (National Agricultural Cooperative Marketing Federation) stopped offloading its stocks in the open market amidst a pick-up in demand for chana dal, trade sources said.
In Karnataka and Gujarat, NAFED has started the procurement of chana, while it is expected to commence purchases in States such as Madhya Pradesh and Rajasthan soon. The MSP for chana for the 2023-24 crop year is $0,64 per kg.
In Karnataka, the modal price (the rate at which most trades take place) is ranging between $0,49-$0,63 in various markets, while in MP it is between $0,50 and $0,58 as per the data from AgMarknet, a unit of the Ministry of Agriculture.
Good demand
“Demand for chana is good. Being, currently the cheapest among pulses, chana dal is seen finding favour among cost-conscious consumers,” said Suresh Agarwal, President, All India Dal Mills Association in Indore. Due to the good demand, chana prices have improved by $0,02-0,03 per kg over the past 15-20 days, when the prices were ruling around $0,59 per kg.
Chana dal prices are ruling around at $0,72-0,84 a kg, which is lower by $0,60 per kg compared to tur dal, which is hovering around $1,39-1,45 per kg, Agarwal said.
The crop in Madhya Pradesh looks good as market arrivals are set to increase in the days ahead. The produce in the State hits markets post-Holi, while the arrivals in Rajasthan will start from April. Parts of Rajasthan are seen witnessing unseasonal rains.
Crop size matters
“The price trend in the days ahead will depend on the crop size in Rajasthan and the arrival pressure in the markets,” Agarwal said. Besides, government agencies such as NAFED are holding sizeable stocks and the trade is keeping an eye on them. Stocks with NAFED are estimated to be between 8 and 10 million tonnes, Agarwal said.
As per the second advance estimate, the production of chana/Bengal gram in the country is seen at a record 136.32 millions tonnes in 2022-23 against 135.44 million tonnes in 2021-22. “Chana prices have improved from last week as NAFED has stopped selling and the public procurement under MSP has started in Karnataka and Gujarat. This is lending support to the prices the market,” said Rahul Chauhan of IGrain India Pvt Ltd.
Prices are expected to remain firm and below MSP levels. “I don’t think prices will move above MSP. Since the prices will be under MSP, the government procurement will be more than last year. Procurement has started in Karnataka and Gujarat and very soon they will start in MP, Rajasthan,” Chauhan said, adding that overall production will be less than last year.
Source: The Hindu Business line
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