Commodity News

Global Chickpea Markets Remain Subdued, Downside Seems Limited for Domestic Markets

Abhijeet Banerjee
Abhijeet Banerjee

The week was subdued for Desi Chana in domestic as well as global markets. Retail trade was light throughout the week from global perspective and Besan demand was moderate in the Indian subcontinent. Domestic prices did not fell much in wholesale markets however, since arrivals are negligible because of the lockdown restrictions. Harvest has been delayed for few more weeks as such and in case govt eases the restrictions of transport, manpower movement etc, then June shall be the peak arrival month. Government procurement has commenced May onwards and has prevented the fall in prices to a great extent.

In global markets, trades in major centres were subdued and the industry continues evaluating the export potential of Chickpeas suppliers to India. Canadian markets were once again sluggish. Kabuli chickpeas were more or less stable while export markets for Desi grades were down on the back of minimal queries from importing nations.  Globally, production will be lower for Kabuli chickpeas this year with any gains in production in some eastern European countries more than offset by declining production in other major producing nations. In Argentina, reports indicate significantly lower chickpea plantings from last year because of dry soil conditions. 

In coming week domestic markets may see some selling activity in wholesale markets as monsoon progress is currently reported satisfactory and predicted to reach the Indian coast by June 1st. An initial estimate of the crop is seen between 11-12 MMT of chickpeas, but considering untimely rains during March month, nearly 20% of the crop is expected to be damaged this year hence the actual harvested crop is now expected to be below 10 MMT. Since crop size is expected to be lower versus previous year, most traders and stockists do not expect spot prices to fall much in coming days and in fact for the forthcoming week it is quite possible that we may see moderate price appreciation post midweek, as selling interest may reduce at lower price offers. At the same time government procurement shall continue and shall contribute in price appreciation as well.  

Desi Chana prices at Bikaner in recently ended week 

 

Period 

Spot Price (Rs/qtl) 

May 26 

4050-4075 

May 27 

4040-4060 

May 28 

4050-4100 

May 29 

4075-4100 

 

Source: Trade persons from Bikaner  

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