Chickpea Prices Moving Up in the International Market

In the wake of the Russia – Ukraine war, the price of chickpeas is moving up in the international market. As per market experts, the price is expected to be bullish in the coming days.

Current Scenario

• During the financial year 2021-22, Russia was selling chickpeas in the market at $8,20 per kg. In comparison, Canada was offering the commodity at $13 per kg. As a result, most buyers started buying the pulses from Russia despite the quality being inferior and smaller in size.
• It resulted in limited export of the pulses for Canada, and the price dropped by approximately 74 cents per kg (converted it roughly from 37 cents per pound).
• However, due to the war and all the sanctions put on Russia, the country quit the market. It led to buyers becoming anxious. As the countries scrambled to fulfill their demand for chickpeas, the Canadian market for the pulses had a rebound. It increased to approximately 96 cents per kg (calculation from 48 cents per pound).
• The other factor that led to the price increase of chickpeas in the global market is the export ban imposed by Turkey, one of the leading exporters of the commodity. It has resulted in limited product availability in the international market.
• The US experienced a price hike, too. The pulse is now being sold at $13,75 per kg. However, the price was $11 per kg during the last eight months.
• Since the war broke, Europe has been looking toward other countries to fulfill its demand for chickpeas. Russia was the primary supplier of pulses in the EU. Recently, Mexico sold 12 mm chickpeas to Europe at $16 per kg.

Prediction

• With the farmers across the US focussing on sowing canola instead of chickpeas because the insurance coverage for the commodity fails to compete with the other crops, the burden will be more on Canada to meet the international requirement.
• However, experts believe that even Canadian farmers can move towards sowing other crops like canola and durum because of better price and coverage.
• Already Pakistan is out of the market until the new crop arrives and Russia getting replaced by the EU means there would be limited availability of chickpeas. All these indicate that the price will move upward till July.

Price trend In India

In India, the trend followed as the price of the commodity increased.

42-44 (12 mm)

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