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Chana, wheat, turmeric prices tumble on new crop arrivals
New Delhi: Prices of chana, wheat, turmeric, coriander and mustard have started coming down with the arrival of new crop in the market, according to traders and analysts.
Since the start of 2019, the price of chana has dropped by almost 7 per cent while that of mustard has corrected by nearly 2 per cent. Wheat prices have also come down, correcting by almost 10 per cent, they said.
“The crop quality is good and we expect production to be similar to previous year,” said Kailash Partani, a trader in Indore, adding that trading companies including ITC, Cargill and Olam are expected to enter the market by March.
Anuj Gupta, deputy vice-president of commodity research at Angel Commodity, said they expect the downward trend to continue for the next one month.
According to Partani, newly harvested chana has started reaching Madhya Pradesh, Maharashtra and Rajasthan, and peak arrivals will begin in a fortnight across these states.
Meanwhile, wheat prices have decreased from Rs 2,200 per quintal to Rs 1,955 per quintal on expectation of higher acreage and a bumper crop, said Gupta. Officials at the Directorate of Wheat Research in Karnal, Haryana, are optimistic that wheat production will surpass the targeted 100 million tonnes for the year.
Wheat harvesting has just begun in Maharashtra, Gujarat and Madhya Pradesh.
“Prices will further come down by 10 per cent once the arrivals pick up in the next 15-20 days,” said a Delhi-based trader.
Prerana Desai, head of research at Edelweiss Agri Value Chain, said, “As of now, the crop is looking good with the rains in the past week aiding the crop. The upcoming weather condition over northwest India has to be seen, before we comment on price movement. Rains will help the rabi crop, but if it is accompanied by hailstorm, it will damage crops and likely impact the prices.”
Among spices, the price of turmeric corrected by almost 7 per cent— from Rs 6,822 to Rs 6,334—owing to higher production this year, said Gupta. Jeera too saw a downtrend, correcting by almost 11 per cent to Rs 15,400 per quintal. Coriander also corrected sharply—dropping 13 per cent to Rs 6,065 per quintal.
“Spices prices have corrected due to expectation of good crop and increase in arrival,” said Gupta.
Analysts said that while prices are down, weather events over the next few days across north India can potentially change the market sentiment.