Poor rain, imports push up chana prices by 10%.

NEW DELHI: Chana prices remained firm due to lack of supplies and concerns of poor rains, say traders. Prices in wholesale market of chana increased by 10% in the past one week to Rs 76.85 a kg and were expected to remain firm. Similarly, prices of other pulses from arhar/tur to urad also remained firm.

"Since the past two months we are seeing prices firming up. Unless government takes up the initiative of importing larger quantities of over 25,000 tonnes pulses, prices will continue to increase," said Veeresh Hiremath, research analyst, Karvy Comtrade. Firm prices of chanahas a ripple impact on the prices of other pulses. In the past 10 days, prices of tur and urad have seen an increase of 3-4%, said Pradeep Jindal, president of the Pulses and Beans Importers Association. He said in Mumbai wholesale market, tur/arhar was being quoted at Rs 90 a kg and urad at Rs 109 a kg.

According to him, prices of yellow peas had firmed up exponentially by 16% in the past one month to Rs 32.50 a kg in wholesale from Rs 28 a kg. "Pulses supplies are less and the demand is more, leading to the increase in prices," he said. Analysts like Hiremath also feel that the monsoon delay and not so encouraging pickup of rains in pulses growing states were also contributing to market sentiments."Everyone is eagerly watching how the monsoon progress in July will be," he said.

Crop planting across India was 24% lower than it was last year, official estimates show as on Friday. Pulses acreage fell 21% at 9.66 lakh hectares. Traders said prices were expected to ease by September-October when imports of chana pick up. "By August-September chana delivery from Tanzania will start followed by Australian crop. We should then expect prices to correct," said Sunil Baldeva of Siliguri Associates, an importer and trader based in Delhi's Naya Bazar market.

Source : economictimes.indiatimes.com