Fundamental Analysis of CHANA

Ankur Maheshwari 09BSHYD0128

INTRODUCTION

• Chana or Chickpea or Bengal gram(Cicer arietinum) is an ancient crop that marked its origination even before 10000 B.C.

• It is said to be one of the oldest pulses known and cultivated in Asia and Europe.

• Chana (chickpeas) is the third most important pulses crop in the world after dry bean and dry peas

• Chickpea has been grown in Indian sub-continent for many millennia.

• Chickpeas are the most important pulses being traded in the international market. These account for nearly 13% of the total quantity of pulses traded.

Type of Chickpea1. Kabuli Kabuli chickpeas are usually grown in

temperate regions of the world. They typically have large seeds that

contain a thin seed coat and are graded into 58 or fewer seeds per ounce. Kabuli chickpeas are often referred to as Garbanzo beans and

have a white to cream-colored seed coat. Kabuli is a high-grade bean usually found in salad bars or in

soups. Kabuli types are large-seeded varieties that require 100 to 110

days to reach maturity. Kabulis only make up 10% to 15% of world production of

chickpea.

Type of Chickpea(Contd…)

2. Desi

Desi chickpeas are usually grown in more semi-arid tropic regions of the world.

They have smaller seeds than Kabuli chickpeas, and are graded around 100 or more seeds per ounce.

Desi seeds have a thick, irregular shaped seed coat with color ranging from light tan to black. Desi variety is primarily milled into flour, ground into feed for

livestock, or used in ethnic foods. The desi types form roughly 80% of the total quantity of chickpea

trade.

VALUE CHAIN FOR CHICKPEA

CULTIVATION PATTERN

• Chana is usually suited to those areas having relatively cooler climatic conditions with temprature near to 20C and a low level of rainfall. • It yields best when grown on sandy, loam soils having an appropriate drainage system• Chickpea is seeded in the months of October to November (Rabi Season) in India. • The maturity period of desi type chickpea is 95-105 days and of kabuli type chickpea is 100-110 days. • Harvesting of the plant is done when its leaves start drying and shedding and can be done directly or with the help of a harvester. • In India, it is harvested in March and April.

Rank Area Production (Int $1000) Production (MT)

1 India 1897235 57486002 Australia 176360 4425433 Turkey 159928 5180264 Pakistan 111633 5746005 Ethiopia 111463 2868206 Myanmar 102091 2600007 Mexico 52067 1646058 Canada 27374 670009 Yemen 23797 58245

10 Iran (Islamic Republic of) 23423 113349

11 Morocco 14240 38100

12 United Republic of Tanzania

12093 31000

13 Malawi 11088 40000

14 Syrian Arab Republic 9564 27100

15 Russian Federation 7241 18000

16 Sudan 6632 1650017 Spain 5638 2230018 Israel 4615 1222019 Tunisia 4033 1088020 Egypt 2948 7866

PRODUCTION OF CHANA (COUNTRY WISE) (YEAR -2008)

CHANA : INDIAN SCENARIO

• Different Indian states have differen name for Chana (chickpeas) like it is called as chana in northern states, Chhole in Punjab, Chola in west Bengal, boot in Orissa, Sanagulu in Andhra Pradesh, Kadale in Karnataka, Kadalai in Tamil Nadu and Kadala in Kerala.

• India is the major producer as well as consumer of chana (desi) in the world.

Exchanges MCX, NCDEX, NMCE

Major Trading Centres

Madhya Pradesh - Indore, Bhopal and Vidisha.Maharashtra - Jalgaon, Latur, Mumbai and Akola.Rajasthan - Jaipur, Bikaner, Kota, Jodhpur, Sriganaganagar and Hanumangarh.Other major centers are are Delhi, Chennai, Kanpur, Hapur, Hyderabad, Vijayawada, Gulbarga, Sirsa, Jalandhar, Ludhiana, Sangrur

CHANA : INDIAN SCENARIO(Contd…)

CHANA : INDIAN SCENARIO(Contd…)

Area : million hectare Production: million tonnes Yield: kg/hectare

CHANA : INDIAN SCENARIO(Contd…)

MSP for Chana

SPOT PRICE CHANA

USES

• The chickpea plant produces acid exudates, which are occasionally

used for medicinal and other purposes.

• Liquid produced from chickpea is used to make a refreshing drink.

• Chickpeas can be cooked and eaten cold in salads, curries and many

other dishes.

• In the Philippines chickpea preserved in syrup are eaten as sweets and

in desserts.

• Chana is used as an edible seed and is also used for making flour

throughout the globe.

• Animal feed is another use of chickpea in many developing countries.

Substitute

1. Other pulses : Urad and Tur

2. Yellow Pea

Factor affecting Productivity and the Price trend

• Rainfall pattern and temperature 

• Information flow between the participants

• Arrivals in the markets 

• Demand from millers, stockists and retailers 

• Production in the International markets. 

• Production and trends of other pulses namely Urad and Tur in

domestic and international markets and price of Yellow Pea. 

• Import and export policies by the Indian Govt. 

NCDEX futures contract specification

Name of Commodity CHANA

Ticker symbol CHARJDDEL

Trading System NCDEX Trading System

Basis Desi Ex-warehouse Delhi inclusive of all taxes and fees

Unit of trading 10 MT

Delivery unit 10 MT

Quotation/base value Rs. Per Quintal

Tick size Re 1

Source: http://www.ncdex.com/product/Agro_product.aspx?comm=CHARJDDEL

Chana Future started trading on NCDEX platform from April 2004 onwards

Future Prospects

There are two main factors on which this depends:

1.Productivity, both in respect of stability and potential yield level.

2.Demand : The large Asian market is not easy to saturate. The European and American markets can considerably expand as the consumption of chickpea already a popular ingredient of salads is likely to increase.

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