Price of Kabuli chana stable in Canada due to better production and limited trade

20-Dec-2024 06:27 PM

The price of Kabuli chana in Canada has remained stable due to a combination of better domestic production and limited trade activity.

A significant increase in domestic production, as reported by the government agency Stats Can, has contributed to ample supply.

However, trade has been subdued, as both traders and exporters are cautious, primarily due to the uncertainty surrounding potential import duties from the incoming US administration.

There are concerns that the US may impose a 25% import duty on Canadian and Mexican products starting January 20, which could affect the export of Kabuli chana to the US, a market that absorbs about 25% of Canada's Kabuli chana exports.

Currently, the price for Kabuli chana delivered to Saskatchewan plants remains steady at 40 cents per pound, and the pace of business is slow.

Producers have significant stock on hand, and with the anticipated good production of Desi gram in Australia and increased gram cultivation in India, there is little urgency for advance purchases.

In Canada, the next cycle of gram cultivation is expected in April-May, and exporters are adopting a wait-and-see approach regarding the US government's decisions. As a result, there is limited advance contract activity, with most buyers focused on the US policy change.

Overall, analysts predict that if favorable market conditions persist, North American farmers may increase their cultivation of Kabuli chana in the coming year.