Chickpea Market Is Bullish Amidst Reports Of Lower Production
The demand for chickpeas is high, with North Indian states like Punjab and Haryana putting in new orders. Also, the market stays strong with a low stock of the old commodity. Adding to the excellent demand, there is the news of low production, and the quality of the new product is unsure yet. Hence, the price is northbound for the pulse.
There is a shortage of quality crops in the spot markets and the growing regions of chickpeas, i.e., Madhya Pradesh, Karnataka, Maharashtra, and Andhra Pradesh, between 23 and 27 percent, the overall harvest is estimated to be below. The unfavorable weather has decreased the overall productivity of the crop per hectare. As a result, the gross production is expected to be relatively low.
Last year, there was a sudden boom in the commodity price, but the price eventually dropped due to the Covid outbreak and the ensuing lockdown.
With the tremendous demand and business getting back to average and overall low production, it remains to be seen how long the market will continue to move.
There is currently low international demand for the crop from India due to the increased price and the hike in freight prices. But as per experts, this can change in the future, and it will depend on how other international players quote the price in the market for the commodity.
It is expected to stay stable and even a bit bullish in the long run. But with an increase in the arrival and low international demand at the current price level, there can be a downward trend.
42-44 (12 MM)
|April 7||$1,40 per kg FOB|
|April 6||$1,37 per kg FOB|
|March 31||$1,35 per kg FOB|
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