Chana may hit Rs 2,500 on late monsoon cues

Prices of chana have gone up by 1 per cent in the past week amid fears that it may touch Rs 2,500 a quintal in the next month as monsoon is expected to arrive late in growing areas.

"Though monsoon has arrived in Maharashtra and other growing areas, its delay has caused an increase in the prices of chana," K C Bhartiya, president of Pulses Importers Association of India, said.

Chana prices ruled in the range of Rs 2,190-2,200 a quintal last week. Reflecting the market sentiment, chana futures for the July contract at National Commodity and Derivatives Exchange (NCDEX) today firmed up by Rs 20 a quintal to Rs 2,318 a quintal from Rs 2,298 at the close on June 16.

The July contract prices even crossed its peak of Rs 2,304 a quintal on June 11 and is expected to move upwards, an analyst said. In last five trading sessions, July contract futures has moved up by Rs 51 a quintal.

Bhartiya said the rise in urad prices had a cascading effect on chana, which touched Rs 2,250 a quintal today.

He said it was important to rein in the prices of pulses to further bring down the inflation rate from the current level of 4.80 per cent. A leading wholesale trader in the national capital said Chana prices may go up to Rs 2,500 level in the next one month.

However, Bhartiya refuses to hazard a guess on the price movement and said the prices would rule in the present range. He said contracts are being made to import pulses from some countries, including Australia, and the availability situation is being gauged.