Low arrival, stable demand

MUMBAI: The mandi price of chana (chick peas) has risen between Rs 90 and Rs 125 per quintal since the beginning of the week, owing to lower than expected arrivals coupled with stable demand. The peak demand for chana begins in March and continues till May end.

“Arrivals are not in tune with expectations. In the Delhi mandi, only 30-40 trucks of with 18 tonnes each are arriving currently. This is much below the usual average of about 80-100 trucks a day,” said Delhi-based trader, Sandeep Sabharwal of Sohanlal & Co.

He further added that arrivals from Rajasthan, which accounts for 35% of production, could be 1-2 weeks late due to unseasonal rains in the state during the harvesting period. Prices are expected to soften when arrivals pick up. The price is also getting support from higher moong, tur and urad prices.

When contacted Pulses Importers Association vice-president Suresh Agrawal he said that the prices have moved up as there are rumours that there would be crop failure to the tune of 15-20%. “These rumours have led farmers to stock the commodity and thus the arrivals are low,” he said.

Mr Agrawal said that since the start of March, the prices have gone up by 26% to current levels of Rs 2,430 per quintal. He, however, added the prices will come down in next 15 days as there will be correction.

India annually produces around six million tonnes of chana and this year production is expected to be lower. “The crop size may be the same but if there is some failure in crop then the actual chana that could be utilised could be down,” Mr Agrawal added.

The rise in the futures chana contracts, however, is lower than the physical market indicating that investors are expecting the arrivals to pick up in the coming weeks. The price of the April contract rose by Rs 4 per quintal, to Rs 2,359.