Unpredictable Fluctuations And Natural Disasters: What's Happening In Indian Kabuli Chana Market?

The Kabuli chickpeas market has been experiencing fluctuations due to several factors, including production estimates, oversupply in the market, and natural disasters affecting crops in other countries. However, the market has been showing strong performance despite these circumstances. In this market, we will explore more about the Kabuli chana market in India.

Current Market Scenario

• Increasing Prices & Slowing Down Trade– The price of Kabuli chickpeas has increased by 4-6 rupees per kilogram in the last week, leading to a slowdown in its trade due to low profitability. Some traders had already reduced their stock at lower prices due to the likelihood of increased production. Meanwhile, there is a shortage of stock in the Madhya Pradesh market, and large quantities of goods are being exported from the Indore-Bhopal line.

• Less Supply In Raw Markets- Farmers have been continuously bringing their produce to the markets due to the low prices they have been receiving, leading to less supply in the raw markets. Traders in Haryana, Punjab, Jammu and Kashmir, Himachal, and other states have refused to purchase goods due to the oversupply in the market. 

• Production Estimates & Natural Disasters- The production was estimated to be 20 million metric tons, which is more than 15 million metric tons in 2022. However, production estimates for the ongoing season were only 18 million metric tons due to poor crop pollination. Moreover, the old stock of three million metric tons has been depleted to zero this year. In addition, crops, including Kabuli chickpeas, have been destroyed in Turkey, Syria, Sudan, and other places due to natural disasters and other calamities.

OFB’s Insight

The Kabuli chickpeas market has been fluctuating due to several factors, including oversupply, low profitability, and natural disasters affecting crops in other countries. However, the market has been showing strong performance despite these circumstances. The Kabuli chana market is one to keep an eye on in the coming months as the industry navigates these challenges.

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