Price of Kabuli chana rises due to strong demand during festive season

09-Aug-2024 12:15 PM

Mumbai. Due to strong demand during festive season and low arrival in mandis, the domestic market price of Kabuli chana has become high and sharp.

It is understood that due to suppression of stock by big producers and stockists, there is limited arrival of goods in mandis.

According to trade analysts, currently 44 percent import duty is imposed on Kabuli chana. If the price in domestic segment goes up,

then the government can consider temporarily suspending customs duty to increase its import from Russia.

If duty free import is not allowed, then the price of Kabuli chana can go even higher during festive season.

According to iGrain India, the stockist limit on Kabuli chana was duly implemented on 21st June, whereas it was removed on 11th July. Since then, its share in Indore market has increased by about 3100 rupees per quintal.

Rahul Chauhan, Director, I Grain India, says that if the import duty on Asian Pool's Kabuli Chana is reduced, then there will be some softening in the domestic market price.

Actually, the outer cover of Russian Kabuli Chana is very thin and hence it can be used by millers in gram flour production. During the festive season, the demand and consumption of gram flour in the country increases a lot.

Kabuli chana is also being exported from India to many countries including UAE, Turkey, Algeria and China etc.

This is also supporting the prices. But with the boom in the domestic market, the competitive ability of Indian Kabuli chana in the global export market is decreasing.

The price of Indian product has become higher as compared to other exporting countries including Mexico. Canada and Russia are also among its major exporting countries.

It has happened during April-May 2024. The price of Indian product has become higher as compared to other exporting countries including Mexico. Canada and Russia are also among its major exporting countries.

During April-May 2024, about 40 thousand tonnes of Kabuli gram was exported from India, which is less than the shipment of 45 thousand tonnes in the same period of the year 2023 but much more than the export of 23 thousand tonnes in the same months of the year 2022.

The domestic consumption of Kabuli gram in India is also more than other exporting countries.