Commodity Outlook – Bengal Gram (Chana)

agribazaar July 9, 2019

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

Directorate General of Foreign Trade (DGFT) has re-set import quantity of pulses for the whole year i.e. from April 01, 2019 to March 31, 2020 at 6.5 lakh MT.
Government procurement has started in Madhya Pradesh, Rajasthan, Telangana, Gujarat and Maharashtra.
Stock positions of Bengal Gram were up by 20.09 percent compared to last week held at National Commodity Clearing Limited (NCCL) approved warehouses at Bikaner, Indore and Jaipur locations. The stocks held as on April 04, 2019 it was 20,222 MT compared to 16,947 MT as on March 28, 2019.

Contango: Markets currently are in Contango or Forwardation trend where the Futures prices are higher than the Physical Spot market prices.

Market sentiments may move prices towards MSP levels (Rs. 4,620 per QTL) due to lower crop size, driving upwards from current levels of Rs. 4,100 – 4,500.
Millers across the country are back in action creating a renewed demand in the physical markets. Most of these millers are aware of the fact, that prices of Bengal Gram would move up in the coming months due to arrivals that are expected to be lower than normal and Lok Sabha elections which are coinciding with current year’s arrival that can impact the sentiments of the markets.
Due to import restriction imposed by the government that would lead to minimum importing by the country would also be an important factor in supporting the domestic prices in the physical markets for coming months.
Overall Bengal Gram prices seem to be in bullish trend in the immediate/short term.