Due to Increased Sowing and Imports Chana Prices Likely to Fall

Chana prices are expected to decrease due to increased production, driven by favorable weather conditions and a rise in sowing in key states like Rajasthan, Maharashtra, and Madhya Pradesh. The peak arrival of chana in the market is anticipated between mid-March and early April, which is expected to put additional pressure on prices. Furthermore, India imported a record 6.7 million tonnes of pulses in 2024, including around 2.9 million tonnes of yellow peas, most of which were imported at prices lower than the MSP. To safeguard domestic farmers, the government has decided not to extend the duty-free import of yellow peas beyond February 28. In the coming weeks, the trend suggests that chana prices will likely decline as increased sowing and favorable weather conditions will result in a rise in supply. The maximum arrival is expected from mid-March to early April, especially from Rajasthan. This surplus supply will exert downward pressure on prices, which are expected to trade around ₹6,000-₹5,850 per quintal in Delhi. Adding to this, India's pulse imports reached a six-year high in 2024, reaching 6.7 million tonnes, with yellow peas contributing 2.9 million tonnes. Most of these imports were made at prices below the MSP, which negatively impacted domestic farmers. In response, the government has decided to halt the duty-free import of yellow peas beyond February 28, as excessive imports can harm local producers. Meanwhile, the government is actively promoting domestic pulse production. Nafed and NCCF have started pre-registration for guaranteed procurement of tur, urad, and masoor dal under the price support scheme. So far, 2.1 million farmers have been registered in key states like Maharashtra, Karnataka, Rajasthan, and Madhya Pradesh, ensuring price support during the sowing season. Additionally, India is seeking trade concessions for imports of green chickpeas from Tanzania and the extension of current duty-free agreements. This comes as imported yellow peas are being sold at a much lower price of ₹32/kg, while other pulses in the retail market are priced between ₹90 and ₹160/kg. In Conclusion: With strong domestic production and record-high imports, chana prices are expected to decline in the coming weeks.

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