Correction Follows Initial Surge

Chickpea prices have experienced notable fluctuations recently due to various market dynamics.

• At the end of May, chickpea prices surged by $0,83-$0,89 per kg, reaching a high of $9,06-$9,13.
• However, profit booking led to a correction, bringing prices down to $8,46 per kg in the last week.
• Despite this correction, the current price situation remains favorable for producers, with chickpeas from Shekhawati, Nohar Bhadra, and Maharashtra regions fetching between $8,58-$8,76 per kg.

Government Imposes Stock Limits

The government recently imposed a stock limit of 200 metric tonnes on chickpeas, Kabuli gram, and Tuvar, temporarily suppressing the market. However, due to low arrivals in producing markets, there is speculation that prices will rise again. Sowing of chickpeas was 40% less in major producing states, including Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, and Andhra Pradesh. Unfavorable weather conditions further reduced per-hectare productivity, resulting in an estimated production of 6.5-6.6 million metric tonnes.

Potential for Price Increase

With low productivity and minimal old stock in both government and private warehouses, dal mills face challenges in sourcing milling goods.

• In early May, chickpea prices dropped to $0,76 per kg but quickly rebounded due to supply shortages and increased Australian prices from $0,71 to $0,88 per kg.
• Currently, prices remain at $8,46 per kg, with potential for a $0,60 per kg increase due to production shortfalls and high import costs.

The combination of decreased production, government stock limits, and rising international prices indicates a likely increase in chickpea prices. Traders and producers should prepare for continued market volatility and potential price hikes in the near future.