Chickpeas stand at the forefront of a transformative year in the agricultural sector. This legume, a staple in Indian kitchens and a favorite in international cuisines, has witnessed a significant upturn in production and export demand. The global dynamics have reshaped its market, thrusting it into the spotlight of agricultural commodities.
Production Surge and Export Demand
Remarkably, there has been an approximate increase of 500,000 tonnes in chickpea production due to amplified sowing activities. This production boom aligns perfectly with a surge in export demand, triggered by shortages in major chickpea-producing nations across the globe. Consequently, Indian chickpeas have seen an unprecedented increase in global demand, making them a key player in international markets.
Seesaw In Indian Market
In India, the price trajectory of chickpeas has been fascinating. In Maharashtra, prices plummeted from $0.99 per kg during the last Diwali to about $0.84 per kg with the new crop’s arrival in February-March. However, a dramatic reversal occurred, with prices soaring to $1.51 per kg post-Diwali. A similar trend was observed in Karnataka, where prices reached $1.60 per kg. Despite temporary price reductions due to weak demand and profit-taking, the market anticipates further increases.
Global Market Dynamics and Supply Challenges
Internationally, the chickpea market faces tight conditions. In Europe, the USA, and the UAE, robust demand meets restricted supply, driving prices upward. Production downturns in countries like Canada and Ukraine have exacerbated the global supply shortage. Despite India boosting its chickpea production by 25% (from 1.5 million to 2.0 million metric tonnes), the substantial export share (77% of coarse chickpeas) and high international prices continue to strain the market.
Market Outlook: Supply-Demand Disparities
The current market scenario reveals a persistent and strong demand, particularly in exports. Exporters in regions like Indore-Bhopal remain actively engaged, reflecting the market’s resilience. With new crops still months away and dwindling stock levels, the chickpea market is poised for sustained high prices or potentially even further increases. The global shortage and high international market prices are key factors influencing the future trajectory of the chickpea market.
