Hailstorm and unfavourable weather had damaged the gram crop in the State, resulting in more demand for the commodity from stockists and mills. Traders had estimated high production of gram this year but the arrival in the market is less.
Demand for the commodity, according to a leading broking firms has been good from States in north and north-east India.Chana procurement was set to begin in Madhya Pradesh early this week but another spell of rainfall has delayed the process.
“Madhya Pradesh received another spell of rainfall in some places which has resulted in additional moisture in the commodity. The procurement centres may reject the commodity with more than 14% moisture and hence, we have given more time to farmers,” said a senior MP State Cooperative Marketing Federation limited (Markfed) official.
“Now the procurement would begin from April 1,” the official said. MSP for Chana for marketing year 2014-15 is Rs3,100 per quintal.
“Demand from Punjab, Haryana, Delhi and other North-Eastern States has been very good this month and the demand may extend in April as quality of current crop arrival is not very good. In this month, price of the commodity has increased about Rs125-150 per quintal on the back of good demand from stockists and millers,” said a leading broking firm maanger.
Even Australian Chana production reportedly falling by 23% supported market sentiments. Significant imports at low rates (with Dollar remaining weak vs Re) have prevented any strong uptrend for Pulses.Chana sowing had increased following a good monsoon last year across the country but hailstorm and unseasonal rainfall has damaged the crop considerably.
The damage was mainly reported from Madhya Pradesh, the largest chana-producing state in the country. The commodity was also affected in neighbouring Gujarat and Maharashtra.According to trade estimates, about 20-25% chana crop was damaged in India due to unfavourable weather.
As per second advance estimates made by the Central government, chana production in India is estimated to be about 9.79 million tonnes for 2013-14 as against 8.83 million tonnes in 2012-13. Chana was sown over an area of 10.21 million hectares compared to 9.5 million hectares a year ago on the back of normal monsoon and good soil moisture. According to data provided by Indian Pulses and Grains Association (IPGA), domestic consumption of chana is a function of price and based on availability of substitutes like yellow peas. For 2013-14, forecast consumption is about 9-9.2 million tonnes.
