Chana Report: Strength in market

During the last week, gram dal and gram flour registered a rise of Rs 100 per quintal due to continued demand, gram remained strong due to lower than expected arrivals and increased activity of stockists. Arrivals in the markets of South India are now almost over; There is good arrival of gram in only 5-6 mandis in Maharashtra. Due to high selling price of gram in Madhya Pradesh, gram is not coming to Delhi. Due to weak stock in Rajasthan, consumption and stock of new gram is increasing rapidly and same situation is in Gujarat. Consumption for gram may weaken due to increase in pea imports. Due to increase in cheap pea imports, gram consumption may be affected by about 10%. If there is a good increase in the price of gram then the consumption of peas can increase further. According to trade sources, gram production in the country is estimated to be less than expected. NAFED has started purchasing gram at MSP and till now has procured a total of about 13714 tonnes from Rajasthan/Gujarat, which is much less than 5.25 lakh tonnes in the corresponding period of last year. NAFED's purchases still weak due to gram prices being around MSP in the mandis; Hopefully there will be improvement in procurement going forward. The gram pipeline is weak at many big centres. If there is some pressure on gram due to extension of pea import deadline by 2 months, then it would be better to purchase at lower prices. Chana fundamentals are strong and can give good profits in future if consumption demand increases.

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