Global chickpea markets had traded with light demand conditions in the week ended recently. Kabuli chickpea markets were however a bit strong, with markets waiting for new crop offers from India and Mexico – crop offers from these two nations shall contribute in setting the tone for prices throughout 2021. Harvest progress in Australia and negotiations by exporters to look for price bargains in order to attract importers from India kept the trading values more or less lower in global markets. Exporters in that country are optimistic regarding emergence of requirements from India amid reports of government likely to reduce import duties on chickpeas in order to lower the food price burden for the consumers.
Chana in Indian markets traded lower during early part of the week but fundamentals remained bullish, therefore markets recovered towards the weekend session. NAFED’s rejection of the sale tenders last to last week added to the positive tone. Government’s announcement of providing free Pulses to the poor till November will prevent fall in prices in coming days. Under the PMGKAY Extension scheme, the supplies shall benefit around 20 Crore families across India, providing great relief against the ongoing Pandemic. With Centre’s taking frequent initiatives to benefit farmers to get better rates for their produce, trade interest has improved significantly in recent months and is expected to favor further rise in prices in near term. Recent scrapping of the Essential Commodities Act too is another positive price driver since buying interest from stockists is likely to remain better.
Currently the food inflation is not concerning therefore intervention from the Government is least likely as of now. 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 most of the produce (anticipating further price appreciation in near term). In present term analysts and traders/farmers are of the view that Chana prices may rise by Rs.400-500/qtl from current levels in near future. Chana prices have undergone down correction over previous month as prices had turned quite expensive, but stockists may resume purchases soon in case in case Besan demand remains healthy or NAFED selling does not occur. Under this situation, one can observe a reasonable price appreciation from current offers in forthcoming weeks.
