Chickpea Prices Likely to Remain Firm on Festive Demand and Tight Supply

Mumbai: Domestic chickpea (chana) prices are expected to remain firm in the coming days. One key factor is strong festive-season demand, with millers and processors showing considerable interest in buying. At the same time, imports from overseas are relatively low. Farmers and stockists are also releasing limited quantities of chickpeas into the mandis.

According to market analysts, traders and stockists are left with limited stocks of chickpeas. Australia also does not have large inventories. Harvesting of the new crop there is expected to begin in October, while export shipments could gain momentum from November. Production is expected to decline sharply this year, which could keep chickpea prices relatively high. African countries, too, are not building up significant stocks.

Demand for chickpea dal and besan (gram flour) rises substantially during the festive season. Prices of yellow peas are also strengthening. In several major producing states, inadequate rainfall during the monsoon season has increased concerns over soil moisture, potentially affecting chickpea sowing during the upcoming rabi season. As a result, stockists may be reluctant to sell their holdings in a hurry.

Good buying from besan millers, stock-builders, wholesalers and retailers is expected to support chickpea prices in the near term. Demand for chickpea dal and besan could remain strong at least through November.

Meanwhile, the central government has sizeable chickpea stocks, which are being released into the market in limited quantities. However, the prices of these stocks are currently close to prevailing spot-market prices. Wholesale mandi prices for chickpeas are presently trading above the Minimum Support Price (MSP).