Chana Market Firm Due to Limited Supply

Chana prices saw limited fluctuation today as both buying and selling remained sluggish. Availability in the supply pipeline remains constrained due to a shortfall in the previous harvest. Consequently, stockists are holding back on sales. Sowing of domestic chana is likely to be lower this year due to the impact of El Niño, making it difficult for pulse mills to easily source raw material.

Arrivals of domestic chana in both producing and distributing markets have dropped significantly over the past month. Driven by supply constraints and robust demand, chana prices have risen by approximately ₹400 per quintal in the last 10 days. Prices are projected to potentially reach ₹8,000 per quintal in the near future.

In Australia, chana prices have climbed to around $790 per tonne, making imports costlier and widening the price disparity between domestic and imported varieties; consequently, importer activity is expected to remain limited.

Meanwhile, the availability of domestic chana remains scarce in key producing markets across Rajasthan, Maharashtra, Karnataka, and Madhya Pradesh. The market is currently receiving strong support due to low arrivals and restricted selling by stockists.

Given these conditions, chana prices at Delhi's Lawrence Road market could potentially reach ₹9,000 per quintal before the arrival of the new crop.

Furthermore, the impact of El Niño raises concerns about the upcoming crop in major chana-producing regions, including Maharashtra, Andhra Pradesh, and Karnataka. If both sowing and productivity are adversely affected, chana availability could remain limited in the next season as well, likely maintaining upward pressure on market prices.