Slowdown in Rising Prices

After a sharp increase in gram (chana) prices, the market is finally showing signs of stabilization. Buyers have slowed down purchasing at the higher rates, and as a result, prices have dipped slightly. Gram prices, which reached a peak of USD 0,96 per kg, have now settled between USD 0,92 and 0,94 per kg. Experts suggest that with the upcoming festive season, prices are likely to remain stable until Diwali.

Last month, gram prices hit a new record, peaking at USD 0,96 per kg by the end of September. However, in recent weeks, prices have eased slightly. In the past month alone, prices have surged by more than USD 0,06 per kg. Compared to this time last year, gram is now selling for USD 0,17 per kg higher.

Reduced Demand Slows Price Increase

Satish Upadhyay, Secretary of the India Pulses and Grains Association (IPGA), explained that pulse mills have been holding back on purchases at these higher prices, which has caused a slight dip. Buyers are also hesitant, given the speculation that the government could release gram from its stockpile or impose import duties, which may or may not happen, affecting prices further.

India relies heavily on gram imports from Australia, and with production expected to rise significantly there this year, the increased supply has helped ease pressure on prices in India.

Potential Short-Term Decline

Commodity analyst Indrajit Paul highlighted that gram prices had climbed so much that buyers began reducing their activity, which contributed to the recent softening of prices. Paul believes that millers have sufficient stock for now, so a further drop of USD 0,01 to 0,02 per kg could occur in the short term. But, once stocks run low, purchasing might pick up again, causing prices to rise in the medium term.

Growing Demand with Lower Prices

As gram prices continue to ease, both retail and wholesale traders may start increasing their purchases. The India Pulses and Grains Association (IPGA) also expects demand for gram to rise in the coming weeks, particularly as the sowing season begins. This could push prices up slightly as demand gains momentum.

Conclusion: Prices Could Rebound After Stabilization

While gram prices have stabilized after reaching record highs, the market may see renewed demand as prices soften. With festive demand approaching and traders likely to resume purchasing, gram prices could rise again in the medium term.

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