Cold wave keeps chana on hot seat

MUMBAI: Chana futures extended gains in thin trade on Thursday, due to improvement in demand and unfavorable weather which may reduce output, analysts said.

“In the north, temperatures have fallen sharply, which is affecting chana and other pulses,” said Ravi Bhushan, an analyst with ICICI Direct.

Cold wave conditions are prevailing in many parts of Rajasthan, a major producer, and are likely to continue for next 48 hours, Agriculture Meteorology Division said on Wednesday.

Madhya Pradesh, the biggest producer, hasn’t received adequate rainfall and traders said, it will also affect on output. Demand in spot market is slightly up as the bird flu outbreak in West Bengal is scaring consumers, who are switching to pulses from chicken, Bhushan said.

In the spot market at Bikaner, Rajasthan, the price rose by Rs 11 to Rs 2,169 per 100 kg, while in Delhi it rose Rs 9 to Rs 2,230. Volume in chana futures decreased to 41,950 tonnes on Thursday, from 45,710 tonnes on Wednesday.