Chana declines by 2.6% as supply improves

Chana continued its slide and prices fell by another 2.58% to Rs 4,682 per quintal in futures trade today as speculators indulged in reducing their exposure amid higher supplies in the physical markets after the government intensified its anti-hoarding operation and decision to import more pulses to check rising prices.

Sentiments remained weak following improved supplies in the market after the government announced a series of measures to curb soaring pulses prices at the spot markets and decided to import more pulses, analysts said.

Besides, seizing of over 50,000 tonnes of pulses following raids against hoarding by the several states, too kept pressure on chana prices at futures trade here, they said.

At the National Commodity and Derivatives Exchange, chana for November declined Rs 124, or 2.58%, to Rs 4,682 per quintal, with an open interest for 45,830 lots.

Similarly, chana for December delivery fell Rs 111, or 2.28%, to Rs 4,760 per quintal, with an open interest for 51,660 lots.

Traders said besides profit-booking by speculators, subdued demand in the spot market at existing higher levels, mainly led to the fall in chana prices at futures trade.