Mint Explainer: Why are chana prices rising despite surplus production?
₹5,300-5,400 to ₹5,925-6,200 a quintal in 20 days in Delhi wholesale markets as demand picks up pace ahead of Ganesh Chaturthi. Chana stocks with National Agricultural Cooperative Marketing Federation of India (NAFED) and state agencies are in reasonably better shape than those of other pulses such as tur (pigeon pea) and urad (black gram). Mint explains why prices of chana are rising despite surplus production.
According to data sourced from private traders, prices of desi chana sourced from leading producers Madhya Pradesh and Rajasthan shot up 12-13% to ₹5,925-6,200 a quintal in Delhi between 1 July and 16 August. Prices of Kabuli chana, a premium variety, shot up 15-30% to 12,600-16,300 per quintal in the same period. Retail inflation in whole chana rose to nearly 3% in June from 1.2% in January, while retail inflation in tur jumped to 27.5% in June from 10.9% in January – the highest inflation recorded in the pulses basket.
According to traders, prices of chana are rising because quality produce is not available in the market ahead of the festive season. The scarcity of chana is attributed to NAFED’s aggressive procurement of 2.35 million tonnes (mt) in the quarter that ended on 30 June. The heatwave in February and inclement weather in March affected crop quality this year as those are the months when chana is harvested.
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