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Chana prices fall as govt offloads inventory, analysts divided over outlook of futures market
NEW DELHI: Chana prices have fallen by 2.three per cent up to now 10 days after rising 23 per cent since July as the federal government auctioned over three lakh tonnes of the heart beat from its inventory within the open market, however analysts had been divided in regards to the outlook within the futures market..
The September contract for chana on NCDEX had touched a excessive of Rs 5038 per quintal on September 1 on the NCDEX after seeing a low of Rs 4094 per quintal since July 28, mentioned Ajay Kedia, director at Kedia advisory.
“Within the medium run, we count on prices to be weak as a result of expectations of larger sowing, although within the brief time period, the market will stay unstable and trade between Rs 4700-Rs 5100 a quintal,” he mentioned.
Lack of demand by firms at larger prices will end in prices coming down within the brief time period in the direction of Rs 4800 per quintal of 100 kg, mentioned Prerana Desai, head of analysis at Edelweiss Rural and Company Providers.
She added that within the medium time period there may very well be a short lived bounce earlier than Diwali season however larger rabi acreage as a result of ample water availability and farmer promoting put up sowing will carry prices decrease in the direction of Rs 4500 per quintal.
Nonetheless, Ashwini Bansod, analysis analyst, Phillip Capital mentioned, with the brand new season harvest 4 to 5 months away, peas imports restricted and September to early November timeframe seeing pageant associated demand, it can help chana value.
The federal government will be sure that prices do not spike or drop under the minimal help prices of Rs 4875 per quintal, mentioned Bimal Kothari, vice chairman of Indian Pulses and Grains Affiliation. “With Nationwide Agricultural Cooperative Advertising and marketing Federation (Nafed) holding an enormous inventory and offloading it within the open market we count on prices to be at Rs 5000 to Rs 5500 per quintal within the coming days, ” he mentioned.
In accordance with merchants, Nafed is promoting within the open market to fulfill trade demand with tenders of over three lakh tonne on the market of chana out of the 21.5 lakh tonne it had procured this yr. Nafed has additionally distributed chana beneath the Pradhan Mantri Garib Kalyan Anna Yojana.
“It has created a separate demand section, driving the market to the MSP stage of Rs 4875 per quintal. It will enthuse the chana farmers for extra sowing and stabilise the heart beat market,” mentioned Sunil Kumar Singh, further MD, Nafed.