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In a first of its kind move, market regulator SEBI has banned launch of new futures contract in chana probably as a precautionary measure to avert any sharp spike in prices which in turn will add to the inflationary concern of the government.
In a direction to the largest agriculture commodity derivatives exchange NCDEX, the regulator said no new chana contract will be launched till further orders.
In terms of existing contracts, SEBI said no new positions will be allowed to be taken and only squaring up of position will be allowed. These directions will be implemented with immediate effect, it said.
Chana August futures had rallied in the last week of July to ₹5,140 a quintal.
However, last month the Union government had imposed stock limits for all pulses except moong till October 31. This had dragged Chana futures below ₹4,800 level. However, budging to agitation from wholesalers, importers and stockists, government relaxed the stock limits in less than two weeks.
Record output
As per second advance estimates of Ministry of Agriculture, India’s chana production is likely to reach an all-time high of 116 lakh tonnes this kharif season against 111 lakh tonnes logged last year, though the area under overall pulses sowing is down 3 per cent year-on-year.
Notwithstanding a bumper crop prediction, supply of chana in July was down 50 per cent at 1.35 lakh tonnes compared to the previous month. Further, in the first half of August, arrivals were down 33 per cent at 46,280 tonnes compared to the previous month.
In this scenario, the government plans to raise chana procurement in this season by 55 per cent at 32 lakh tonnes against 21 lakh tonnes bought last year. However, Nafed, the government’s nodal procurement agency, has failed to build any significant buffer amid higher prices prevailing in open markets.
Lower supplies in mandis against robust demand for chana dal and besan ahead of festivals are expected to push up prices, particularly with the lockdown being relaxed across the States, said Ajay Kumar Kedia, Director, Kedia Commodities.
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