Chana, urad prices maintain firm bias

Chana prices are expected to remain range-bound with a firm undertone in the near term due to lower arrivals, limited market stocks and reduced imports, according to the latest weekly report by the India Pulses and Grains Association.  The association said demand for chana continues to be largely need-based as consumption of chana dal and besan remains subdued amid the delayed progress of the monsoon. However, lower imports of chana and yellow peas, along with restricted availability of stocks with traders and millers, are likely to provide support to prices.

Government procurement operations are also helping maintain price stability, although buying activity has slowed as procurement targets are nearing completion.  IPGA noted that medium-term price trends will depend on domestic demand, farmer selling patterns, government stock policies and import parity. During the week ended June 13, chana prices remained largely unchanged due to selective buying and lower arrivals. 

In Indore, a key benchmark market, prices were steady at ₹6,000-6,100 per 100 kg.Tur prices are also expected to remain stable in the near term as weak demand is being balanced by lower arrivals.

Consumption of tur dal has not picked up significantly due to the delayed onset of the monsoon, although demand typically improves once rainfall becomes widespread.

The association said prices are unlikely to decline sharply because arrivals have reduced and stockists are unwilling to sell at current levels.