More Stories

Informist, Monday, Dec. 16, 2024

MUMBAI – Prices of chana are likely to rise in the short term due to need-based purchases by millers and the limited availability of domestic chana, the India Pulses and Grains Association said in its weekly report released Monday. 

However, with a likely rise in Australia's chana output, and lower cost and freight prices of the shipments, domestic prices could face downward pressure, the association quoted analysts as saying. The shipments from Australia for Jan-Feb 2025 are priced at $680 per tonne, down from $700 per tonne quoted for the Dec-Jan shipments, according to the association.

Chana production in Australia is expected to reach 1.9 million tonnes this year, up from 491,000 tonnes last year, due to a good season in Queensland and New South Wales, the report said. Production in Australia was also boosted by India's removal of import duty on chana.

On May 3, the government had waived import duty on chana shipments till Mar. 31, 2025. On the same day, it also extended free imports of yellow peas till Oct. 31. In September, the government had extended the duty waiver on yellow pea imports till Dec. 31 to control the high prices of tur and chana as yellow pea is a substitute for both pulses. 

The market is waiting for the government's decision on further extending the duty-free import of yellow peas, the association said. According to media reports, the government is considering extending the duty waiver on yellow pea imports for a few more months, possibly until February.

The market will also be closely monitoring the progress of rabi sowing of chana, the weather conditions, and the crop yields in Jan-Feb, the report said. According to the Ministry of Agriculture data, the rabi acreage of chana as of Dec. 9 was at 8.6 million hectares, up 7.1% from a year ago.

Prices of both imported and domestic chana rose in the week ended Saturday as millers purchased the pulse at lower rates amid limited availability, the report said. Prices of domestic chana also rose due to lower-than-expected supply pressure from Australia, along with weather-related delays in the country. Meanwhile, prices of imported chana rose due to its lower prices and better availability, when compared to the domestic variety.

However, the demand for processed chana and besan was low last week, as record imports of yellow peas weighed on the consumption of chana dal, the association said. The country imported more than 1 million tonnes of yellow peas in Apr-Sept, according to data from the Ministry of Commerce and Industry.

In the week ended Saturday, chana prices in Indore, Madhya Pradesh, rose INR 150 from a week ago to INR 6,800-INR 6,850 per 100 kg, according to the report. Prices of chana in Akola, Maharashtra were up INR 25 at INR 6,825-INR 6,850 per 100 kg.  End

Reported by Shreya Shetty

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.