Chana Prices Increase On Festival Demand Hopes

Chennai: Chana (gram) prices have gained in spot and futures market on hopes demand will grew with the festival season round the corner. The rupee's decline, a drop in inventories and fears rains could wreak damage to crop of other pulses and lentils in Rajasthan and Gujarat have also buoyed chana. Spot chana prices are currently quoting between Rs 2,425 and Rs 2,525 a quintal in various markets, up Rs 50-150 since last week. In the futures market, chana contracts for August are quoting at Rs 2,266 a quintal, up from Rs 2,227 at the beginning of the month, while September contracts are ruling at Rs 2,351 against Rs 2,301 on NCDEX. The market is gradually reviving due to increased participation of millers, who are buying for the forthcoming festival season. There are enough stocks in NCDEX warehouses which will cast downward press in the markets. The decline in the rupee against the dollar has resulted in chana prices rising to $585 a tonne in the global market.