Absence of futures cues may hit chana

However, prices are set to rise to Rs 2,500 a quintal by June-end because of a fall in output and gaps in supply chain, traders said.

Today, chana was trading in a range of Rs 2,200-2,250 because of subdued activity and low arrivals.

The Forward Markets Commission (FMC) suspended futures trading in chana, soyoil, rubber and potato as a measure to curb any possible price rise in the future.

"However, it is unlikely to soften prices substantially from here. We expect prices to come down 3-4 per cent in the short term," said Sachin Mutte Pawar, the proprietor of Harikrupa Agro Industries, in Udgir, Maharashtra.

The Annageri variety of chana, comparable to the one traded in the futures market, was today trading at Rs 2,200-2,225 a quintal, down Rs 25 from Thursday, Pawar said.

Low consumption of chana dal across the country during the ongoing mango season will also put downward pressure on prices for another month, said Abhay Lakhwan, an analyst at Religare Commodities.

Traders and growers were taking positions in the spot market based on futures price on the National Commodity and Derivatives Exchange (NCDEX).

"However, absence of NCDEX's benchmark following suspension of the contract, will bring down chana prices by Rs 50-100 in the coming couple of weeks," said Chowda Reddy, a research analyst at Karvy Comtrade.

Offloading of warehouse stocks, meant for delivery in futures, may also bring temporary weakness in prices, said Deepak Gilda, a pulses dealer in Gulbarga.

Chana stocks at NCDEX-accredited warehouses were around 24,000 tonnes prior to suspension of futures and the exchange today asked owners to rematerialise the stocks.