With lower crop output and steep decline in carryover stock this year, chana prices may touch a new high in the coming days.

According to Mr Prakash Vora, a wholesale chana trader, it would not be an exaggeration if chana prices touch the level of Rs 4,800-5,000 a quintal, given the fact that carryover stocks in chana of the past two years has almost got exhausted on account of declining output.

Depleting stock is bound to increase dependency on imported Australian chana which according to the recent deal will cost $ 710 a tonne and after payment of all taxes on Mumbai port alone the cost will come to Rs 4,200-4,300 a quintal, while its Indore delivery will further go up by Rs 400-500, said Mr Vora.

Decline in arrival and depleting stock have made stockists go on buying spree, anticipating higher returns in the coming days, said a trader. In the past one week, chana (kanta) prices have almost gone up by Rs 200 a quintal. Besides buying by stockists, speculators have also pushed up chana prices in the physical market. Contrary to the past when chana prices in the physical market were being influenced by higher prices of chana in the futures, the trend has now just reversed as chana prices in the futures are almost Rs 200 a quintal lower than its prices in the physical market.

In the spot, chana (kanta) on Tuesday ruled Rs 4,600 a quintal, while chana (desi) was at Rs 4,500. Arrival in local mandis was recorded at a mere 1,000-1,500 bags. With rise in spot chana, chana dal in the past one week has also perked up by Rs 200 a quintal with chana dal (average) being quoted at Rs 5,600-5,625, chana dal (medium) at Rs 5,650-75, while chana dal (bold) ruled at Rs 5,825-50.

Dollar chana, on the other hand, ruled stable at Rs 6,500-7,500 a quintal on scattered buying support, even as arrivals declined to around 500 bags. Amid subdued export demand, dollar chana in the container also ruled steady with 42/44 count being quoted at Rs 8,500, 44/46 count at Rs 8,400, 46/48 count at Rs 8,300, while 58/60 count stood at Rs 7,000.

According to Mr Ankur Pandya, an Indore-based dollar chana trader, long rally in dollar chana appears unlikely in the coming days, given weak export demand.

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