Our Correspondent

Indore, Aug 5

Chana prices soared by nearly 10 per cent on Thursday on increased export demand. The prices increased Rs 450-500 a quintal.

On the spot market, Dollar (Kabuli)chana or chickpea quoted at Rs 4,800-5,000 a quintal, up Rs 500. It was for the second consecutive day that the commodity witnessed a sharp rise in prices.

On Wednesday too, prices had zoomed Rs 250-300 a quintal to Rs 4,400-4,500.

Satna mandi, the biggest mandi for Dollar chana in Madhya Pradesh, witnessed a sharp rise in prices. It was quoted at Rs 5,500 a quintal, up Rs 400. Dollar chana prices in Madhya Pradesh mandis had ruled below Rs 4,000 a few days ago but there has been a sudden spurt in prices with increased global demand.

Traders said with damage to the chickpea crop in Mexico and export demand doubling, prices may rise further in the coming months.

Currently, arrivals in mandis are about 4,000 bags a day. Low arrival has mainly been attributed to stockists holding back inventories, hoping for better price in the coming months.

With tremendous demand in the export market, coverage of Dollar chana crop in Madhya Pradesh this year has increased by 25 per cent.

On the other hand, chana (kanta) prices have been witnessing a downtrend, due to sharp fall in its prices in the futures market.

Chana August futures on NCDEX closed at Rs 2,264. Similarly chana September and October futures closed at Rs 2,311 and Rs 2,381, a decline of almost 8 per cent and 7 per cent respectively.

Chana (kanta) prices in the spot market on Thursday quoted at Rs 2,200-2,210.

(This article was published in the Business Line print edition dated August 6, 2010)
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