Kabuli Prices Stabilize as Arrival Drop; Sellers Less Active

Mumbai, 24 June 2024 (Commoditiescontrol): After a brief rise over the past few sessions, Kabuli chickpea prices have stabilized in major mandis despite a decrease in arrivals. At the Indore markets, arrivals dropped to approximately 2,000 bags, a significant decrease from the previous session's 3,000 bags. This price stability has led to reluctance among farmers and stockists to release more material into the market. Container prices also remained steady amidst a lack of substantial inquiries.

In Canada, farm gate prices for Kabuli chickpeas have held steady, with both the 9 mm and 10 mm varieties priced at USD 684 and USD 700 per metric ton, respectively. Sources attribute these stable prices to an increase in acreage, which has kept prices at a nine-month low. At Indore market, prices of all count Kabuli chana quoted stable. While in Delhi, the Mahrashtra line Kabuli Chana lost Rs 100 to trade at Rs 9,000/10,000 per quintal. Similarl loss was reported by the Indore Line Kabuli Chan. Poor demand is hurt by weak fundamentals.

Compounding the market dynamics, the Indian government has imposed stock limits on Chana, including Kabuli, effective until September 30, 2024. The imposed limits are as follows:

Wholesalers and large retailers: 200 metric tons

Retailers and retail outlets: 5 metric tons

Millers: Last 3 months' consumption or 25% of annual capacity, whichever is higher

Importers: Stock clearance within 45 days of customs clearance.

Despite these regulations, the immediate impact on Kabuli prices appears limited. With an overall crop size of about four lakh tonnes and approximately one lakh tonnes already consumed, around three lakh tonnes remain distributed among numerous farmers, stockists, and retailers. Therefore, it is unlikely that many participants will have stock exceeding the prescribed limit. Consequently, there may not be significant selling pressure due to the stock limit. However, the stock limit is expected to reduce demand to meet immediate needs and slow down speculative interest. These factors will significantly lower demand, making it challenging for farmers and stockists to sell their stock and likely keeping prices subdued in the near term.


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(By Commoditiescontrol Bureau; +91-9820130172)