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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 previously 10 days after rising 23 per cent since July as the federal government auctioned over three lakh tonnes of the heartbeat from its inventory within the open market, however analysts have been divided concerning 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, stated Ajay Kedia, director at Kedia advisory.
“Within the medium run, we anticipate prices to be weak as a result of expectations of greater sowing, although within the brief time period, the market will stay risky and trade between Rs 4700-Rs 5100 a quintal,” he stated.
Lack of demand by corporations at greater prices will end in prices coming down within the brief time period in direction of Rs 4800 per quintal of 100 kg, stated Prerana Desai, head of analysis at Edelweiss Rural and Company Providers.
She added that within the medium time period there might be a brief bounce earlier than Diwali season however greater rabi acreage as a result of ample water availability and farmer promoting submit sowing will deliver prices decrease in direction of Rs 4500 per quintal.
Nonetheless, Ashwini Bansod, analysis analyst, Phillip Capital stated, with the brand new season harvest 4 to 5 months away, peas imports restricted and September to early November timeframe seeing competition associated demand, it would help chana value.
The federal government will make sure that prices do not spike or drop beneath the minimal help prices of Rs 4875 per quintal, stated Bimal Kothari, vice chairman of Indian Pulses and Grains Affiliation. “With Nationwide Agricultural Cooperative Advertising Federation (Nafed) holding an enormous inventory and offloading it within the open market we anticipate prices to be at Rs 5000 to Rs 5500 per quintal within the coming days, ” he stated.
In response to merchants, Nafed is promoting within the open market to satisfy business 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 below 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. This can enthuse the chana farmers for extra sowing and stabilise the heartbeat market,” stated Sunil Kumar Singh, extra MD, Nafed.