Chana futures plunge further on Friday mainly due to lower physical demand and higher stock levels. However, to encourage farmers to plant more chana, Government increase MSP by 10% to Rs. 4,400 per quintal by the government. Currently, futures as well as spot prices are well above the MSP prices while sufficient stocks levels in the country and good production forecast for next season is pressurizing the prices and may drag it near MSP during the sowing season.

Outlook

Chana futures may trade sideways to lower due to sufficient stocks in the country on higher imports and record production last year. Market participants are expecting higher production during the new season also bearish for the prices.

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