Chana dal prices up 10% ahead of festive season

Prices of chana dal have surged up to 10% over the past month amid increased demand for the largest consumed pulse in the country ahead of the festive season, according to industry executives. As chana dal is used in a range of sweets and savouries such as laddus, sev and farsan, prices are expected to stay firm, they said.

However, prices of tur dal have fallen about 5% in the past month, offering consumers some relief, the executives said.

According to the Indian Pulses and Grains Association (IPGA), chana prices are expected to stay firm due to steady festival season demand, reduced local supply, limited government stock and low selling interest among stockists.


Large imports of yellow peas have not helped in curbing chana demand, as expected by the government, said industry executives.

“Chana dal prices have increased despite imports of big quantities of yellow peas as the replacement of chana with yellow peas is substantially lower than expected,” said Rupesh Rathi, a processor of pulses from Akola in Maharashtra.

However, an expected increase in imports from Africa and Australia by September will prevent a sharp increase in prices, said traders.
“Higher domestic prices have made chickpea imports more viable, so an increase in overseas supply is expected, which could prevent significant price hikes,” said an IPGA report.

The government’s decision to extend duty-free imports of yellow peas beyond October 31 and the approval of the government agency National Agricultural Cooperative Marketing Federation of India’s chana tender will also impact chana prices during the festival season.

Prices of tur dal, a daily staple consumed across the country with rice, idly and dosa, have however been falling due to increased kharif acreage, lower prices of new supply from Africa, selling pressure among stockists, cheaper substitutes and slow buying by dal millers as demand remains low.

According to the data compiled by the IPGA, the ex-mill price of tur dal in Akola has fallen Rs 700 per quintal or 4.2% in a month to Rs 15,800 per quintal. However, the price is 9% higher year-on-year.

Tur dal prices are expected to increase again in the coming months owing to factors such as weather issues, delays in African supplies, festival demand and expected approvals for government procurement in Tamil Nadu and Andhra Pradesh.

Rathi from Akola said any increase in tur dal prices would remain capped at 5-6%. “The new local crop of tur is expected to arrive one month early in November due to early sowing in Karnataka, which will keep the increase in tur prices to a maximum of Rs 5-6 per kg till October,” he said.

Agricultural expert Deepak Pareek said, “We might see an upward movement in tur prices. Delayed shipment from Tanzania due to introduction of auction as the only method to procure, revival of demand in India as seen since last week and reluctance to trade with Mozambique are some of the key factors which could strengthen domestic prices.”