India Chana to Gain on Rising spot Demand .

MUMBAI (Commodity Online): After the massive fall in rates the earlier day, Chana recovered moderately on short covering and slight rise in demand at the lower levels.

Trend remains uncertain in the short term as discussions on price rise in Parliament could affect the sentiments adversely. Fundamentals remain Bullish in medium term but short term high volatility is not ruled out.

Raising MSP of Rabi crop (Gram by 33% to Rs 2800/Q from Rs 2100/Q) could support Chana rates in medium term.

As per latest data from Agriculture Department of Rajasthan—as on 4th Nov, 2011 the sown area under Chana (Gram) crop is up by 77% to 9.38 lakh hectares as compared to same period last year's 5.32 lakh hectares.

As per the latest report of Andhra Pradesh Agriculture Department, sown area under Rabi 2011-12 pulses is down by 30% to 3.54 lakh hectares from last year’s 5.06 lakh hectares.

1st Advance Govt estimates of a fall in Pulses production to 6.43 million tonnes vs last estimates of 7.12 million tonnes could support short to medium term rates for Chana.

The other major producers for Pulses—namely Myanmar, Australia and Canada are likely to report a fall in Pulses production due to adverse weather. The Indian imports are likely to get costlier in coming months which could support Chana rates.

Shifting to other more lucrative crops like Cotton and soybean have resulted in lower acreage for chana.

Source : commodityonline.com