MUMBAI (Commodity Online): Slight firm trend was noted for Chana in the markets as moderate demand and arrivals were noted. Expectations of higher Festive demand are supporting the prices while slight higher arrivals prevented the prices from rising too much.

With parliament session going on and increased focus on controlling Inflation is there, it can affect the market sentiments negatively to some extent. Rains in the Southern growing regions for other Pulses like Urad and Tur pressurized prices to some extent on improved sowing prospects

Reports of indications of a rise in Pulses acreage by 7-8% is also likely to keep prices weak not only for Chana but also other Pulses like Tur and Urad whose rates shot up significantly last year. The area under Tur and Urad is expected to rise more as farmers reportedly got good returns last year

A good monsoon progress can improve the productivity of these crops and keep prices under control this year. Normal monsoon reports prevented any highly sentiment to return to the market. Regular imports too kept check on prices

The 4th Advanced Estimates of crop production for Year 2009-10 puts Pulses production at 14.59 million tonnes against annual demand of 17-18 million tonnes. The imports have shot up by ~45% to 3.5 million tonnes due to low production of Tur and Urad last year. Chana production is estimated higher at 7.35 million tonnes vs 7.06 million tonnes last year

Higher high stocks in warehouses have been pressurizing prices. Higher stock of its substitute – Yellow Peas too has been reported

Courtesy: Religare Commodities

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