Market Panorama of Global and Domestic Chickpeas

World chickpea markets had maintained a relatively quiet tone during the past week, with few changes in the price levels. Growers in North America were interested in higher bids for larger caliber products in both the United States and Canada, mainly because of shortage in the product.

On the other hand, the Kabuli types maintained a subdued tone in the international markets. Australian chickpeas harvest is expected to get underway in October, and the exporters are planning to start selling the new season’s production. In context to the price review of U.S. Chickpeas for the 2020-21 marketing year, the markets had observed prices falling 22% below the recent three-year average annual price. Analysis of the monthly price pattern reveals the highest monthly average was $38.25 per cwt in August, while the lowest monthly average trading level was $27.00 per cwt in the month of November. According to the latest USDA production estimates the production of US Chickpeas is down 29% from last year at 3.03 million cwt or roughly 137,600 metric tons (MT).

The USDA estimates indicate that the area planted for all chickpeas for the 2021 crop year is estimated at 376,300 acres in the USA, and this is up 10% from the previous forecast and up 39% from the previous year. Area harvested for all chickpeas is forecast at 367,600 acres, up 10% from the previous forecast and 40% above 2020. Small chickpea area planted is estimated at 60,800 acres, down 9% from previous forecast but up 26% from 2020.

Area harvested for small chickpeas is forecast at 57,200 acres, down 13% from the previous forecast but a 19% increase from 2020. The area planted for large chickpeas in 2021 is estimated at 315,500 acres, up 15% from the previous forecast and a 43% increase from the previous year. Large chickpea area harvested is forecast at 310,400 acres, up 15% from the previous forecast and a 44% increase from 2020. On the other hand, the average yield for the US chickpeas is expected to be 825 pounds per acre, down 800 pounds from 2020.

On the domestic front, the demand for the processed product i.e. besan remains stable at present. The wholesale markets were seen trading under pressure during the last week of August and as the cheaper offers began attracting retailers and stockists, the traded offers started moving upwards and till date, the average prices in markets of Rajasthan/MP and Delhi have gained nearly 50-75 Rupees on a quintal versus August end prices.

Approaching festive season and lower inventory levels are expected to keep the market supported in forthcoming weeks. Traders expect price appreciation of another 20-25 percent by the end of 2021.