NEW DELHI/OTTAWA. Due to the government's decision to sell their goods at lower prices for social projects, Indian traders' confidence has suffered dramatically. Meanwhile, prices have risen slightly again.
High freight costs prevent imports.
Indian chickpeas continued their slight upward trend and were able to achieve price increases of about 10 USD/mt again this week. However, after the government decided to sell parts of its stocks cheaply for social welfare programmes, traders' confidence has been severely dented. Importers are hardly doing any business at the moment, as freight costs from important sourcing countries like Australia, Mexico and Russia are so high that they cannot compete with the domestic prices.
The government defends its decision by saying that it was necessary to curb rising inflation, while traders are angry that prices remain below the minimum support price. Only those market players who sold their goods in June and July, when high profits could still be made, consider themselves lucky at the moment. The exporters report that at least the shipments of high-quality goods, especially chickpeas from Maharashtra, continue to run satisfactorily. Meanwhile, the lower quality fruits, which come from the state of Madhya Pradesh, among others, are preferred as seeds.
Canadian prices get support
Experts report that there is little movement in the Canadian chickpea market at present. Lower acreage and mediocre yields should support prices this season, although in the export market, of course, much depends on the crops of other producing countries. Rising production costs are a headache for all market players and will inevitably be reflected in selling prices.