1. Commodity News

Global Chickpea Markets Stable, Trend Remains Upward in Domestic Markets

Abhijeet Banerjee
Abhijeet Banerjee

World Chickpea markets were more or less stable during the week recently ended amid tightening supplies of larger grades such as Kabuli types. Because of rising competition for available demand from countries like Russia, traders of North America preferred focusing on meeting their own requirements rather. Initial harvest activity has been reported in Exporters in Queensland region of Australia, could receive fresh orders from Bangladesh during previous week as this importing nation prepares for replenishing its food reserves, which were damaged because of severe flooding this year. On the other hand buying interest for Australian chickpeas failed to emerge from Pakistan.

Markets of India remained strong last week and continue trading in similar manner this week as well. Improved demand from millers is observed quite frequently these days as the un-lockdown phase has started. So transportation activities have improved hence the millers have also begun operating. Government’s announcement of providing free Pulses to the poor till November have also supported price rise, since it has resulted in higher procurement by the Government agencies. The NAFED had recently distributed around 5 lakh MT of chana to States Union Territories under PMGKAY Extension as against the target of 9.73 lakh MT up to Nov. 2020. The supplies shall benefit around 20 Crore families across India, providing great relief against the ongoing Pandemic. The rest 4.73 lakh MT would be distributed till Nov-2020. 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 demand from stockists is likely to remain better. 

The decision to raise MSP for Chana has been taken, ahead of the new season arrival of these crops. This move is also likely to give a boost to the farmers, in enhancing their income levels. From a broader perspective, this decision is expected to keep average mandi prices of chana on upward track in coming months. For 2020-21 marketing season the government has increased the MSP of Chana by Rs.225/qtl to Rs. 5100 per quintal.

Light demand is noted these days but traders expected festival related demand to improve by first week of next month. For chana another supporting factor is that there is no import parity till Rs. 6000-6500/qtl so logically, chances of imports to occur is unlikely this year, thereby keeping supplies restricted. At the same time inflation is well under control so intervention from the Government is least likely as of now. Also 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.500-600/qtl from current levels of Rs.5300-5400/qtl in near future. 

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