Desi Chickpea, commonly known as 'Chana' in India, has been making higher-high in NCDEX Futures since July when its September Futures was on a continuous rally with a low of INR 4094/quintal also showing some intermittent profit booking as the Open Interest was also on the rise, indicating a further upward moment.
The prices being range-bound at INR 4020/quintal to INR 4345/quintal, which had also been the MSP for the farmers for the end of March and has been uptrend since then.
If the October futures (exp DT- 20 Oct 2020) are taken into consideration, it's continuously trading in and above the INR 5500/quintal mark.
As far as the reason behind it is concerned, it can be curbed down to the production volume for the year 2020 as reportedly the producers have collected 25-30% fewer chickpeas from the planned work and demand for the same is high also due to exiting and upcoming festive seasons in the country.
It also started to show uptrend because The National Agricultural Cooperative marketing federation (NAFED) continued to procure high amounts of chickpea production after the Indian government declared INR 1 lakh stimulus package for the Agri sector it had also indicated that the chana/chickpea stocks it procured so far will be sold through various government agencies supporting market sentiments.
As far as corrections are concerned, the farmers may increase supplies in the local market that might bring a downward movement in a rally of price rise just for the corrective measures. The government of India has also decided to increase the MSP for the commodity to give a boost to farmers' income also to keep the mandi prices average for the coming months. For the market year 2020-21, the MSP is INR 5100/quintal.
As far as the future of the price is concerned, it might reach to INR 6000/quintal in the coming period.