Technically Chana market is under long liquidation as market has witnessed drop in open interest by 5.49% to settled at 44960 while prices down 111 rupees.
Now NCDEX Chana is getting support at 5136 and below same could see a test of 5074 levels, and resistance is now likely to be seen at 5294, a move above could see prices testing 5390.
Chana yesterday settled down by 2.09% at 5199 after update govt not reducing import duty on chana. Farmers will increase the acreage under chana in the upcoming rabi season and make good the kharif loss.
The government has, refused to heed to the request of the trade as it will have disastrous consequences for farmers who are all set to sow their rabi crop.
For the rabi season next year, the Centre has announced an MSP (minimum support price) of ?5,100, an increase of ?225/quintal over last year’s MSP.
If the Centre reduces import duty to 35-40 per cent, as demanded, it will hit market prices badly. In 2019-20, India produced about 11.35 million tonnes of chana, which was 14 per cent more than in the previous year.
NAFED did a good job by procuring 2-2.1 million tonnes, against last year’s seven lakh tonnes, despite the Covid-19 led disruption in mandi activities.
However, even that benefited only 20-25 per cent of the chana farmers; the rest had to take the market price of ?3,900-4,000/quintal even when the MSP was ?4,875/quintal.
In the months that followed, NAFED had yet another challenge before it — disposal of a close to 3.5 million tonnes of chana, of which about 1.7 million tonnes was carried forward from 2018-19, without disturbing the prices in the market.
–Chana trading range for the day is 5074-5390.
–Chana dropped after update govt not reducing import duty on chana.
–Farmers will increase the acreage under chana in the upcoming rabi season and make good the kharif loss.
–In 2019-20, India produced about 11.35 million tonnes of chana, which was 14 per cent more than in the previous year.
–In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 5100 Rupees per 100 kgs.