Chana Market Report

Last week, the demand for Chana dal and Besan remained steady, leading to a weekly increase of ₹150-175 per quintal. Despite some selling on Saturday, the domestic Chana market successfully closed the week with strength. Delhi Chana saw a rise of ₹150 per quintal. Key markets like Indore, Katni, Bikaner, and several others also showed firmness in Chana prices. Delhi Chana traded between ₹5350 on the lower side and ₹5700 on the higher side. Despite a ₹350 rise in Delhi Chana, there hasn't been a corresponding surge in Chana dal prices. With March ending, trade and buying are expected to remain slow for the next 8-10 days. The slowdown in demand for Chana dal has caused a pause in millers purchases. The strong buying by stockists pushed the prices up. Due to lower-than-MSP prices, Chana arrivals in the mandis were limited, but the consistent buying support from stockists at every price point helped the market to remain strong. Farmers currently have several options to sell, including wheat, mustard, lentils, and peas, which has led to limited Chana sales in the mandis at lower prices. Looking ahead, we expect Chana arrivals to improve in April, which could put pressure on prices. As of now, Delhi Chana is priced at ₹5600 per quintal, and it is advisable to buy in the range of ₹5300-5400. For mill-quality Chana, the recommended buying range is ₹5100-5200, as the likelihood of prices falling below this level is low once government procurement starts. For the short term (15-30 days), limited trading in Chana is advisable. Meanwhile, Chana arrivals from Madhya Pradesh, Rajasthan, and Gujarat are expected to start putting pressure on the market. While Madhya Pradesh�s sowing has been weak, the productivity remains excellent. Rajasthan reports better productivity in most districts, and Gujarat�s Chana crop is expected to be 15-20% higher than last year. Due to these factors, it is advisable to wait until April for Chana stock. The deadline for Chana imports is March 31, 2025. Regardless of whether the import deadline is extended or not, no significant short-term impact is expected on the market. Australia is reported to have around 4 lakh tons of Chana stock left, with import prices at ₹6100-6200. In terms of domestic production and arrivals, the total Chana production in India is expected to be around 80 lakh tons this year (compared to 70 lakh tons last year). Chana from Karnataka and Maharashtra has mostly been harvested, while pressure from Gujarat, Rajasthan, and Madhya Pradesh will continue into April. As of now, the government�s procurement of Chana through Nafed has only reached 2969.75 tons in Telangana. We believe that procurement in Karnataka and Maharashtra might remain weak, while it is expected to be normal in Gujarat, Rajasthan, and Madhya Pradesh.

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