Chana futures on the NCDEX was down by 0.7 per cent at Rs 4,361 a quintal on Wednesday due to profit booking.
Concerns over lower supply and poor monsoon is likely to limit the down trend. The July contract on the NCDEX has gained 8 per cent in last one month.
Although chana is a rabi crop, it takes cues from monsoon and sowing progress of kharif crops.
The Government has announced special incentives to raise kharif pulses output. Rainfall has been below normal since the beginning of the season.
The kharif pulses sowing and output will depend on the progress of monsoon in July, which accounts for over 34 per cent of the total rainfall.
About 36 per cent of the total pulses in India are grown in the kharif season. The MSP of urad for this kharif season was increased by 30 per cent to Rs 4,300 a quintal against Rs 3,300 a quintal last year. The decision on MSP for key pulses -- tur and moong -- was deferred.