Low Production Pushes up Gram
Bengal
Gram, the Common Chana is turning hot as prices have shot up due to decline in
production and low stocks. Gram production this year has dipped by 40 per cent.
And, with old stocks of new crop standing exhausted prices have moved up by Rs.
450 per quintal in the past few months and is expected to remain firm until the
arrival of new crop in the mandis. Traders expect the prices to flare up by Rs.
200/300 per quintal.
Bengal
gram, principally produced in Rajasthan and Madhya Pradesh, has witnessed a
significant decline in production. In Rajasthan, the crop this year has dropped
to the level of 25 lakh tonne from the earlier level of 40 lakh tonne. Madhya
Pradesh has recorded a production figure of only 10 lakh tonne. Meanwhile, in
other states too the figure is not very encouraging, resting at around 2-3 lakh
tonne. The total availability this year has come down by about 12/13 lakh tonne
to 37/38 lakh tonne.
According
to traders, with production taking a dent prices of gram which stood at Rs.
1660/1665 per quintal during March first week, rose to 2100/2105 Rs. per quintal
in July. In fact during May-June prices had peaked to 2105 Rs. per quintal.
Gram
prices in Indore presently rule at Rs. 2035/2040, Jaipur at Rs. 2060/2070,
Lucknow at Rs. 2145/2150, and Kanpur at Rs. 2160 per quintal whereas, in Delhi
prices have been hovering around Rs. 2050/2100 since long.
In
Delhi, gram stock last month stood at around 6/6.50 lakh bags which has come
down to 4/4.25 lakh bags. Arrivals from producing mandis of Rajasthan and Madhya
Pradesh have also eroded considerably. Daily arrivals from these states amount
to 25 to 26 trucks i.e., about 3800/3900 bags which is much below the last
year’s figure of 8/10 thousand bags.
Imported
gram, on the other hand coming from Canada, Australia and other countries carry
a price tag of Rs. 2000 per quintal. According to traders, two months ago
importers from Kolkata and Mumbai had struck deals for Canada gram at $340/345
per tonne c&f. This has now shot up to $ 365/370 per tonne. Similarly,
import deal with Australian exporters was fixed at $360 per tonne which now has
moved up to $385 per tonne. With prices firming up traders are seemingly
hesitant to forge new deals.
Meanwhile,
with gram becoming dearer, its close ally besan is facing a different crisis.
Besan one of the most common food ingredients in Indian Kitchens has been
reported to be prepared from imported chick peas of Bulgaria and Myanmar. With
prices being low at around 2000/2050 per quintal and advantage of grinding the
seed along with the coat, besan manufacturers are making a kill. What is more is
that even corn flour is mixed with besan to make a profit.
According
to traders apart from production being low what has really firmed up gram is the
fact that stock availability turned almost nil since the season commenced.
Prices in Rajasthan mandis are on the upfront because a major chunk of the
stock, around 17/18 lakh tonne, have been lapped up by the stockists and dal
mill owners of north India. With the new crop expected to arrive only during
March/April, the coming year and the ready stock expected to be around 10/12
lakh bags, prices are forecast to rule at around 2300/2400 Rs. per quintal.
However, a lot will depend on imports, traders say.