Support from International Trade Deals Keeps Market Calm

The chickpeas market recently experienced a minor drop, with prices decreasing by USD 0,036 per kg  over the past week, driven by several international trade agreements. Indians importers deals with Australia, however, continue to provide a safety net, stabilizing market sentiments. Despite sparse local arrivals in production and distribution hubs, imports from Australia have continued. Recently, Mumbai saw deals closing at USD 0,91 per kg, followed by a slight reduction of USD 0,012 per kg last week. Stakeholders should not panic, as the market shows signs of stabilizing.

Stockists Reduce Holdings as Government's Role Sparks Debat

In the changing market, stockists have started reducing their inventories, preparing for a potential price decrease. Concerns have surfaced regarding the government's intentions to sell chickpeas. Despite these discussions, the government lacks the necessary chickpea stock to influence the market dramatically. The government has been focusing on procuring raw chickpeas for milling purposes, which has complicated market dynamics further.

Sowing Season to Anchor Prices

Field preparations for the upcoming sowing season are in full swing, requiring an estimated 1 million metric tonnes of chickpeas for planting. This demand underpins the market's current stability. Despite stockist selling pressures and reduced demand from pulse mills, prices at Lawrence Road for Rajasthani chickpeas have stabilized at USD 0,91 per kg, suggesting that imported supplies are unlikely to push prices lower anytime soon.

Lower Stock Levels and Future Outlook

Chickpea stock levels are reported to be 42-43 percent lower than last year, while shipments from Australia, priced at USD 0,89 to 0,91 per kg, are expected to arrive in November. These imports won't affect current market conditions immediately. The government’s stock limit on chickpeas, which wasn't extended after September 30, points to potential price increases, possibly reaching USD 1,02 per kg in the coming months.

Conclusion: No Immediate Risk – Traders Should Hold Steady

Considering the current market trends and stock conditions, traders should remain confident. The sowing season’s demand and limited stock offer stability, suggesting that prices will likely hold steady or even rise. Given the absence of immediate pressures, traders may consider holding onto their stocks rather than selling prematurely. The market is well-positioned for recovery in the months ahead.