Chana futures on the National Commodity and Derivatives Exchange Ltd (NCDEX) continued its downtrend on Friday.

November contract was trading down 0.11 per cent at Rs 4,698 a quintal at 12.58 pm. It touched a high of Rs 4,720 and low of Rs 4,688.

Demand was subdued. The sharp increase in imports is also keeping the prices lower.

The minimum support price of all rabi crops, except wheat, has been revised upwards. MSP of chana has been marked up by Rs 200 to Rs 3,000 a quintal. Higher returns and favourable soil condition will boost acreage in the coming season.

Though overall pulses sowing in the rabi season is lagging by 20 per cent at 37.23 lakh hectares as of November 9, chana sowing in Maharashtra and Andhra Pradesh has shown improvement compared to last year.

As on November 9, chana sowing in Maharashtra is up 66 per cent at 4.6 lakh ha, and in AP, it is up by 41 per cent at 3.81 lakh ha.

Chana futures may remain under pressure as supply is expected to increase in a few days. However, going forward, it may take cues from the sowing progress of rabi pulses which is expected to increase in the coming days.

(This article was published on November 16, 2012)
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