The global field pea markets traded on nervous note towards later part of the week ending November 28. Exporters are concerned as increasing potential for a major increase in chickpea output in India is slashing their hope for the government to lower import duties/tariff rate quotas on peas next year. Lowering chances of import duty in India will be limiting the export prospects of global peas markets. Additionally the negative crush margins for soybeans in China is prompting thoughts of downward price revisions in Canadian/North American peas, so as to make it a competitive ingredient in livestock feed markets. The smaller crushers of North America are facing tight situation as they may have to cancels some purchase contracts from the United States, as they could not safeguard the price risk against their purchases.
No major developments were reported in the world chickpea markets and the price values were more or less throughout the week. But the global trading pattern has shown some change this year in context to Turkey emerging as one of the most important exporters and importers of chickpeas in 2020. Exports from Turkey between January and September were more than its imports by nearly 82,000 metric tons (MT). Turkey this year could export greater quantity to the Middle East, Pakistan and Europe when compared to 2019. The country imports mainly from Mexico and Russia.
Trading was seen with subdued note in domestic markets as well mainly because of competition from vegetable markets. In winter every year, prices of most vegetables turn cheaper due to which traders of Chana have to maintain the pricing in order to make the commodity competitive against vegetables, otherwise demand shifts significantly from Chana to vegetables. Report of rise in sowing area is another factor in putting pressure over the prices. As per Government data available till November 20, the land under Chana cultivation till had reached 57.44 lakh hectares as against 44 Lakh hectares during last year corresponding period.
Government’s announcement of providing free Pulses to the poor till November had supported the market in recent months. Although demand for Besan still continues but traded offers are unable to sustain higher amid fears of NAFED to sell from its reserves. Reportedly NAFED still has a decent quantity in its reserves. But there are talks of Government to extend the scheme of Chana distribution to the poor and in case the scheme gets extended for few months then it can result in sharp price appreciation in forthcoming weeks. The daily arrivals till date are quite lower than the daily arrivals during corresponding period of last year. This is indicative of the fact that farmers and stockists are still holding the produce, in addition to production being lower versus previous year.
