Week Ahead: Chana prices to remain strong on better mills buying, NAFED'S procurement.

Mumbai, April 01st (Commoditiescontrol): The price of Chana at the Indore market showed a consistent increase for the fifth week in a row, ending on April 1st, 2023. This was due to an increase in purchases by millers, as well as a rise in demand for Chana dal and besan. In addition, the limited availability of Chana due to market closures during the financial year-end and festival holidays has also contributed to the price rise. Furthermore, the increase in prices can be credited to an improvement in market sentiments due to a surge in the pace of the government's procurement at the Minimum Support Price (MSP) in multiple states such as Maharashtra, Karnataka, Gujarat, and Andhra Pradesh.

For the second week in a row, the price of Tanzania-origin Chana continued to increase in Mumbai. It significantly increased Rs 350/100kg during the week to 4,950-5,100/100 kg. This was attributed to several factors, such as millers purchasing according to their needs, lower domestic arrivals, and lower prices than the domestic variety.

Chana dal prices increased for the second week due to good demand at the Indore, Jaipur, and Akola markets. As a result, it rose by Rs 200/100 kg during the week. Similarly, due to strong demand, branded Chana dal besan prices increased for the second week. As a result, it was up by Rs 50/100 kg for the week at the Mumbai APMC market.



As of April 1st, 2023, in the Rabi season, the National Agricultural Cooperative Marketing Federation of India (NAFED) has purchased 3,64,926 metric tons of Chana under the Price Support Scheme (PSS) at the Minimum Support Price (MSP) of Rs 5,335.



As per technical chart - Chana Delhi (Rajasthan line) - A breakout above resistance (Rs 5,250) may trigger a new leg higher towards Rs 5,500 - Click here

Trend: The prices of Chana are expected to remain strong in the near term due to an increase in the pace of procurement at MSP by Nafed and strong demand for Chana dal and besan. However, a potential surge in arrivals in nearterm may exert short-term pressure on prices. Despite this, the long-term outlook for Chana appears to be bullish, given the projected shortfall in overall pulses supply by year-end. Chana's relatively lower prices compared to other pulses may make it an attractive substitute for those pulses, potentially increasing its demand. This could lead to increased interest from stockists who wish to stock up on Chana.

(By Commodities Control Bureau: 09820130172)