Prices of chana (Bengal gram) have firmed up over the past one month amidst a pick-up in demand and in line with the bullish trend in pulses complex driven by rising prices of tur and urad. Chana prices have moved up by about a fifth from early July.
Prices of chana (Bengal gram) have firmed up over the past one month amidst a pick-up in demand and in line with the bullish trend in pulses complex driven by rising prices of tur and urad. Chana prices have moved up by about a fifth from early July. | Photo Credit: K. K. Mustafah

Prices of chana (Bengal gram) have firmed up over the past one month amidst a pick-up in demand and in line with the bullish trend in pulses complex driven by rising prices of tur and urad. Chana prices have moved up by about a fifth from early July.

Traders feel that the price rise is unusual considering the record chana output of 135.43 lakh tonnes (lt) as per the Government’s third advance estimates. Chana prices, which ruled below the MSP of ₹5,335 per quintal till end-June, are now hovering about the support price levels at various agri terminal markets (mandis). The modal price (the rate at which most trades take place) in Indore, which ruled at ₹4,785 per quintal on June 30 touched a high of ₹7,765 on August 4 before retracting to ₹5,595 on August 17.

Also Read | Centre asks States to act against hoarding of tur and urad 

Shortage Impact

Bimal Kothari, chairman, India Pulses and Grains Association (IPGA) said there has been pressure on other pulses due to the scarcity of tur and urad. Chana prices have increased by ₹6-7 per kg in recent days in spite of higher production estimates by the Government. Lentils have also moved up by ₹2-3 per kg. Overall the pulses prices are up.

“If the chana production numbers are true, why are the prices on the higher side. If the crop is 135 lakh tonnes, the reasons for chana prices going up is impractical” Kothar said, adding that the trade had been indicating that the crop is lower than last year.

NAFED has procured about 23.5 lt during the Rabi 2022-23 marketing season. It had a carry forward stock of around 14 lt and the total stock before the sale was 37.5 lt, estimates Rahul Chauhan of IGrain India.

Last year’s stocks on sale

“It appears that there is a shortage in the open market. With NAFED making big purchases, corporates and private stockists have not stocked up this year. Also, millers are also not carrying huge stocks. As a result, with the pick up in demand, the prices have moved up swiftly by ₹1,000-1,200 per quintal” said Chauhan.

Chana prices in Delhi, a key consuming market, moved up by ₹75 per quintal and traded in the range of ₹6150-6175 on Friday, Chauhan said.

Nafed has began selling old stocks of chana at various locations. “Despite government selling the last year’s stocks the prices are going up,” Kothari said.

Suresh Agarwal, President, All India Flour Millers Association in Indore, said it appears that the output of chana is lower than the Government’s estimates. Chana production could have been in the range of 90-95 lt compared with the Government’s estimates of 135.43 lakh tonnes.

Also Read | Chana shipments gain pace on low price, export parity 

PDS distribution

“Demand has picked up for chana as other pulses such as tur and urad have turned expensive. Over the past 10-12 days, prices have moved up by around ₹800 per quintal and are hovering in the range of ₹5,900-6,100 in various mandis of Madhya Pradesh and Rajasthan among other States. Also, the fact that several States are distributing chana under the public distribution system makes a difference,” Agarwal said.

Chauhan said further big moves may come in if the monsoon is not favourable in the later stages. “If the demand continues to be firm till Diwali, there may be another round of price hike.” he said.

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