Commodity Outlook – Bengal Gram (Chana)

Sowing period: September to November
Harvesting period: March to April
Crop season: Rabi

Key growing locations:

  1. Madhya Pradesh – Dewas, Khargone, Sehore, Ujjain, Vidisha
  2. Maharashtra – Amarawati, Akola, Vashim, Wardha, Latur
  3. Gujarat – Surat, Dahod, Rajkot, Amreli, Junagarh
  4. Uttar Pradesh – Kanpur, Lucknow, Varanasi, Ghaziabad, Lalitpur
  5. Karnataka – Gadag, Raichur, Gulbarga, Bidar, Dharwad
  6. Rajasthan – Tonk, Kota, Baran, Jhalawar, Ajmer
  7. Telangana – Adilabad, Warangal

Production trend and Stock position

  • As per the Ministry of Agriculture fourth advance estimate released on August 11, 2021, Bengal gram production was 11.99 million metric tonnes (MMT) compared to FY 2019-20 which was 11.08 MMT, up by 8.21 percent
  • As per Directorate General of Commercial Intelligence and Statistics (DGIS), India’s export of Bengal gram (Desi Chana) for 2021-22 (April – July) was 13,382.00 MT valued at ₹ 81.78 crore and imports for the same period was 14,066.15 MT valued at 75.95 crore
  • According to agriwatch website sowing has started and farmers have covered 2.32 lakh ha (lh) so far against 3.88 lh last year, which is 40.21 percent down from last year
  • Area under Chana may decrease by 10 percent this year as farmers in Rajasthan, Madhya Pradesh and U.P. are shifting to Mustard from Chana due to higher prevailing prices of Mustard
  • Import flow would remain restricted as duty plus cess is 60 percent, but import flow may continue from the least developed countries (LDC) as they enjoy benefit of zero duty
  • Market regulator SEBI, on August 17, 2021 asked leading agri commodities trading bourse NCDEX to not launch any futures contracts on chana (gram/chickpea)

Monsoon Update

For the country as a whole, cumulative rainfall during this year’s monsoon season till September 30, 2021 is below Long Period Average (LPA) by 1 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:

Market commentary: Price outlook

  • The Government had increased the Minimum Support Price (MSP) of bengal gram by 2.55 percent to ₹ 5,230 per quintal for Rabi marketing year (MY) 2022-23 compared to ₹ 5,100 in 2021-22
  • Bengal gram prices will be steady to slightly firm in immediate / short term as demand has been weak despite festive season
  • If demand improves there are hopes of slight recovery which might be seen in the coming weeks

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