Chickpeas

Chickpea Prices Likely to Improve After This Current Recession

Mintec Global
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Due to the lack of subscription for the last one and a half months, it has slowed down significantly despite Chickpea’s low production and productivity. In addition, producers have moved away from the spot and international markets due to the price slump. The possibility of import has just ended, given these circumstances. But according to market experts, there can be a price increase anytime after the subscriptions begin. As a result, the price of chickpeas is expected to increase by $0,10 – $0,11 per kg.

Current Scenario

The new crop of Chickpea has been available in the market since February. However, the market has been fluctuating since the start of the season till now. It is due to a considerable reduction in production and the low purchase by the customers for the last ten months. As a result, the market has come down from the above prices.

This time, the price of Chickpeas from other countries, including Sudan, is also high because their production has reduced.

Crops in Canada have also been low due to the reduction in production.

The old stock is gone, and given the present circumstances, there is absolutely no scope for any further decrease in the current price of Chickpea. Instead, there will be a price hike in the commodity as the demand starts.

High prices of Chickpeas are running in Bhopal, Indore, Gulbarga, and Ragseema lines. The spot markets of Akola and Jalgaon lines are already improving.

Experts stated that whatever goods are lying in the stock are currently being cut off at a low price due to the tightness of the rupee. But it will change as soon low-quality products are finished, and better quality products come out, and there will be a considerable increase.

The sowing was reduced between 29 to 30 percent in different states.

Though the crop growth was average, the unfavorable weather reduced productivity per hectare, affecting gross production.

Last year also, the production of chickpeas remained low. But due to the increase in the input of Chickpea from Sudan at a lower price, the selling pressure increased in the year’s second half.

In Sudan this year, there is less sowing. The adverse weather delayed the crop by a month, and production remained low.

Future

Production of Chickpea is estimated to be around 1,4 million metric tonnes. Last year was about 1,5 million metric tonnes. Last year, however, 500 thousand metric tonnes of old stock were left. The old stock has come close to only 150 thousand metric tonnes this time.

In this way, the total achievement is 1,550 million metric trains, which is not commensurate with the consumption. Our quantity of Chickpea is 2,4 million metric tonnes, so we will have to import it later. If the imports are of low price, then the market will remain sluggish; otherwise, the market will rise significantly.

Price Trend

The price of chickpeas, sold at $1,07 per kg in Maharashtra, has come down to a low of $0,90 per kg.

42-44 (12MM)

Date Price
May 24 – 25$1,34 per kg FOB
May 12 – 23$1,35 per kg FOB
May 3 – 11$1,36 per kg FOB