India Chana to Edge Higher on Firm Fundamentals.

MUMBAI (Commodity Online): Chana trend remained firm in the mandis as Fundamentals remained moderately Bullish.

Chana is likely to trade up while intermittent profit booking at the higher levels and rising Inflation could limit positive sentiments to some extent.

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 soyabean have resulted in lower acreage for chana.

Source : commodityonline.com