CHANA - ONE OF THE MOST LEADING COMMODITY IN PULSES Swastika
Commodity Trading

CHANA – ONE OF THE MOST LEADING COMMODITY IN PULSES

Chana is a very important pulse crop and mostly used in our daily life. It is also called as Bengal gram or chickpea and belongs to Leguminosae family. They are highly rich in protein and carbohydrates and are placed third in among the main cultivation of food legumes around the world.

Also known as one of the most leading commodities in pulses, Chana are of mainly two types: Desi and Kabuli. It is generally cultivated into the areas having the relatively cooler climatic conditions with a low level of rainfall. As this crop is highly sensitive so the excess of water supply may hamper its yield, therefore, grown on sandy, loam soils having an appropriate drainage system.

Chana is one of the most important pulses crop domestically and internationally where India produces around 80-90 Lakh tonnes of Chana annually. The major producers in India are Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, Uttar Pradesh and roughly contributing to around 87% of the total production. India is the major importer of chana whereas Australia, Tanzania and Canada are the major exporters of it.

The world’s total production of chickpeas hovers around 8.5 million metric tons annually and is grown over 10 million hectares of land approximately. The Desi type chickpea contributes to around 80% and the Kabuli type around 20% of the total production. The maturity period of desi type chickpea is 95-105 days and Kabuli type chickpea is 100-110 days. In India, it is harvested in February, March, and April. Countries in the Asian continent are the major importer of Desi type chickpea and the remaining countries import Kabuli type chickpea.

USES OF CHANA:

  • The key value of Chana lies in the relatively high protein content, which makes it an excellent source of protein. It is a protein-rich supplement and contains around 19% to 20% protein.
  • Chana is majorly used for crushing to get Chana Dal and Besan.
  • Chana seed is processed for split Chana or Chana dal and Besan, both get consumed throughout the country, so dal mills are set up across India.
  • Chana is also used as animal feed.

FACTORS AFFECTING THE PRICE OF CHANA:

  • The weather condition in Chana producing areas especially during sowing and pod formation condition.
  • Demand for Chana from Dal Millers and Besan manufacturing industry.
  • Demand-Supply and price scenario of other competitive pulses such as yellow peas, moong, lentils etc.
  • Government policies like Minimum Support Price (MSP), stock limit, import and import duty.
  • Rainfall level and level of moisture in the soil.

SEASONALITY:

Commodity Trading

BENEFITS OF NCDEX CHANA FUTURES:

⮚ It is a benchmark futures contract for chana.

⮚ It connects the entire value chain.

⮚ It has a robust delivery mechanism.

⮚ Hedging and price risk management tool for value chain Efficient and transparent price discovery.

⮚ Efficient and transparent price discovery.

CONTRACT SPECIFICATIONS:

•     Ticker symbol – CHANA

•     Trading Unit – 10 MT

•     Delivery Unit  10 MT

•      Maximum Order Size  500 MT

•     Tick Size – RS.1 (per QUINTAL) 

•     Hours of Trading- Mondays through Fridays: 9:00 A.M. to        5:00 P.M.

•     Quantity Variation – +/- 5%

•     Delivery Center – Bikaner, Akola, Jaipur and Indore

•     Delivery Logic – Compulsory Delivery

•     Delivery Specification – Upon expiry of the contracts all the outstanding open positions shall result in compulsory delivery.

•      Due date/ Expiry Date 20th day of the delivery month – If 20th happens to be a holiday, a Saturday or a Sunday, then the expiry date (or due date) shall be the immediately preceding trading day of the Exchange, which is other than a Saturday

•      Tender period – The tender period would be the last 5 stock trading days (including expiry day) of the contracts.

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