Expect chana to trade sideways to positive: Angel

         Angel Commodities report on Agri Commodities

Agricultural Commodities

Chana

Chana Aug futures increased 1.09 per cent to close at Rs 4654 on limited arrivals in the spot market due to monsoon rains and reports of lower production in Canada and Australia also helps in surge in prices. To control the domestic prices, centre asked state governments to take stringent action against hoarders and boost supply in "vulnerable areas" prone to shortages. Meanwhile, all the warehouses registered with Warehouse Development and Regulatory Authority (WDRA) exempted from the stock limits. There is sufficient stock available in the country due to record imports as there was nil import duty on chana since December.

According to the latest govt data, country has imported about 4.19 lakh tonnes of chana in 2014-15, which is more than 51.8 per cent higher than the quantity imported in the entire previous year. Total import of chana in 2013-14 stood at 2.76 lakh tonnes. As per 3rd Advance Estimates for 2014-15, Chana production is estimated at 7.59 million tonnes (mt)  against 8.28 mt in 2nd estimate. Earlier Government has extended dutyfree imports of pulses including chana till September 2015.

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Outlook

We expect chana to trade sideways to positive due to regular demand as supplies are reported to be limited in the spot market on revival of monsoon in most parts of the western and central India. Relaxation of hoarding limits for WDRA registered warehouses also positive for prices. Selling at higher prices may be negative for the prices.

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