Chana Expected to Rise on Weak Arrivals.

Chana rates firmed up last week as reports of adverse weather conditions in the North and West India delayed the arrivals even as demand flared up. Reports of delayed arrivals from AP and Karnataka due to the unseasonal rains last year along with reports of fall in production there have been supporting the market sentiments for chana. Floods in Australia are reportedly affecting the crop there also leading to lower imports from Indian subcontinent. Lower arrivals in the North along with improved demand from wedding season is also keeping the trend firm for chana.

Firm trend in other Pulses like Tur and Urad too kept trend firm for chana. The area under Tur and Urad is expected to rise more as farmers reportedly got good returns last year. Higher imports too kept prices on check. The 1st Advanced Estimates of crop production for Year 2010 11 puts a significant projected rise in Kharif Pulses production at 6 million tonnes vs the previous projections of 4.3 million metric tonnes showing a significant rise of ~40% for the projected production estimates.

Source : indiainfoline.com