Indore, Dec 4

Chana has been witnessing a down-slide in Indore mandis on weak buying support and sluggish demand in pulses. Amid report of favourable crop prospect and with harvesting of new chana crop approaching near, a panic button has set in among the stockists. With depleting demand and panic selling by stockists, chana prices in the past one week have declined by Rs 300-Rs 350 a quintal with its price on Tuesday being quoted at Rs 4100-Rs 4150 a quintal. Similarly chana (desi) declined to Rs 4000 a quintal.

According to traders, besides slack demand, arrival of imported chana from Australia has made stockists release existing stock of domestic chana with them in panic, leading to steep decline in its prices in the past few days. Added to this, bumper crop prospect of domestic chana has also lent strength to sluggish trend in chana. Bearish sentiment in chana futures with chana December contract on the NCEX witnessing a lower circuit on Saturday last has loosened grip of speculators from dictating chana prices in the physical market and this is one of the reasons for current downtrend in chana, said a local chana trader Mr Prakash Vora.

With decline in spot chana, its dal has also declined in local mandis by over R 300 a quintal in the past one week. On Tuesday, chana dal (average) was quoted at s 5000-Rs 5025 a quintal, chana dal (medium) at Rs 5100-Rs 5125, while chana dal (bold) ruled at Rs 5400-Rs5425 a quintal ( down Rs 300 a quintal from last week).

Sluggish trend also continued in dollar chana on weak demand both in the domestic and export market. On Tuesday, dollar chana prices in local mandis declined to Rs 4000-Rs 6000 a quintal (against Rs 5000-Rs 6500 a quintal last week) amid arrival of 4500 bags. In container also, dollar chana has declined by over Rs 800 a quintal on poor export demand. On Tuesday dollar chana (42/44 count) declined to Rs 7250 a quintal 44/46 count at Rs 6900, 46/48 count at Rs 6500, while dollar chana 58/60 count declined to Rs 4325 a quintal.

(This article was published on December 4, 2012)
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