CHANA
CHANA Chana, also called Bengal gram or chick pea, is the premiere pulse crop in the Indian subcontinent. India is the largest consumer and producer of chana in the world. The two popular varieties of chana in India are Desi and Kabuli. The desi variety is usually split and relatively small with thick seed coat. Kabuli is cream in colour, relatively large in size with thin seed coat. Bengal gram is widely appreciated as health food. It is a protein rich supplement to cereal based diet in India where large sections of population are either vegetarian or cannot afford animal proteins. USES AND NUTRITIONAL VALUE Whole chana is split into chana dal and ground to make our popularly called besan apart from being consumed in varied forms with daily Indian meals. Chana is a good source of carbohydrate, and protein. CULTIVATION AND SEASONALITY Chana is a Rabi crop sown during the winter months in India. Fertile sandy and loam soil with good drainage is required for cultivation. Cooler climate and low rainfall suits chana cultivation. The peak arrival period is March - April at the mandis in India. THE CROP CALENDAR DOMESTIC SCENARIO Chana constitutes 50 per cent of all pulses produced by volume in India SHARE OF CHANA IN TOTAL PULSES PRODUCED BY VOLUME IN 2009-10 Source: Ministry of Agriculture, GOI Note: Data is fourth Advance Estimateby the Ministry 2
Chana production has increased by 36 percent between 2004 and 2010 with 25 percent expansion in acreage and 9 percent improvement in yield.the government has set a production target of 7.58 million tonnes for 2010-11. Source: Ministry of Agriculture, Government of India ** Area covered as on Jan 28th 2011 *** Fourth advanced estimate as released in July 2011 STATES' SHARE IN PRODUCTION OF CHANA IN 2008-09 Source: CMIE The export and import of chana by India has increased 116 percent and 20 percent respectively between 2005 and 2009 YEARLY IMPORT AND EXPORT OF CHANA-INDIA 3
INTERNATIONAL SCENARIO Originally from the Middle East, chana is grown throughout the semi arid regions of India and the Mediterranean. Apart from India, the other major producers of desi chana areturkey, Pakistan, and Australia TOP CHANA PRODUCING COUNTRIES IN 2008 Source: Food and Agriculture Organization of the United Nations The Indian subcontinent led by India imports maximum volume of chana while Australia leads the list of countries exporting chana TOP IMPORTERS OF CHANA IN 2008 Source: Food and Agriculture Organization of the United Nations PRICE BEHAVIOUR In ation of chana prices was least amongst pulses and lower than food articles during 2010. WHOLESALE PRICE INDEX OF CHANA VERSUS PULSES FAMILY AND FOOD ARTICLE Source: O ce of the Economic Advisor, GOI 4
T h ep r i c e b ev hi oau r d e p eonnd si n e rt p l a y b ee et w n d e m aanndd s u p pfl yc hoa ntah. em a i n f a c t o r s ti imn pg a dc e m aa nn dd s u p p alyre a sfo l l o swfl u ct u a t i oinnas re a p, ro d u tci o n a n dy i e l d C a ryro ve rs t o cakn di m p ot rsi m p at ci n g t h es u p p l y Fa ct o r os fp ro d u tci o n i n c l u d irnagi n f a l l T h emi n i m u Smu p p otprr i c o e f ef re db yt h eg o ve r n m e n t Return o snc o m p e t icnrogp s MINIMUM SUPPORT PRICE OF CHANA T h em i n i m usmu p p ot pr r i c easre a n n o u n c be ydt h ec e nt r a gl o ve r n m e nwti t ha v i e wt o e n s uerre m u n e r aetpi vr i c et so t h e f a r m e frosr t h epi ro r d u c e o n bt ah sei s tohf e C o m m i s soiro n Argif c u l t u r a l C o s trsi caensd (CC PPA) r oe m c m e n d a t i. To hn es s e p r i c easre a n n o u n caetdt h ec o m m e en m c e not ft h es e a s otnoe n a b lf ea r m e tr osp u r s ut eh e ier f of rt sw i t ht h ea s s u r aentch a t t h ep r i c ef sa r m e res c e ievwo u l dn o tb e b e l o w t h el e ve l f i xe d b y t h eg o ve r n m e nt th. en a t i o naagl r i c u l t ucroaol p e r aet i v M a kr e t i nfge d e r a t i(onna F E D i st) h en o d aalg e nycfo rp ro c uer m e not fp u l s ef sro mf a r m e rtsh. eg o ve r n m e n r at i s etdh em S P fo rc h a nba y1 9p e cr e nti n2 0 1 0-1o 1ve rt h e2 0 0 9-1le0ve l MINIMUM SUPPORT PRICE (RS/QTL) OF CHANA Source: Directorate of Economics & Statistics, GOI VALUE CHAIN PARTICIPANTS IN TRADE OF CHANA Farmer Agent/Stockist Dal Miller Wholesaler Wholesaler (Dal) Retailer Consumer CHANA @ NCDEX NCDEX, the leading agri futures exchange in the country, o!ers futures trading in chana. Futures contract in Chana complements the portfolio of a commodity investor and acts as a hedging tool for the value chain participants in the trade of chana 5
The chana futures contract is an e ective tool to manage price risk VOLATILITY IN SPOT PRICE OF CHANA IN 2010 (Monthly volatility calculated on the basis of spot prices at basis centre) The e cient price discovery through the futures contract on chana explains the accomplishment of this derivatives product. A close convergence off utures and spot prices of chana contract upon expiry illustrates the utility of this futures contract as a hedging instrument. PRICE DISCOVERY THROUGH CHANA FUTURES CONTRACT TRADED VOLUME OF CHANA FUTURES ON NCDEX 6
MONTHLY RETURNS FROM CHANA CONTRACT Over the years, NCDEX chana contract has been able to build up signi cant interest among all market participants which is evident from the steady open interest of more than 200,000 MT during the entire nancial year 2010-11. AVERAGE MONTHLY OPEN INTEREST IN CHANA CONTRACT PHYSICAL DELIVERY OF CHANA ON NCDEX 7
MAJOR MANDIS NEAR THE NCDEX'S DELIVERY CENTRES FOR CHANA CONTRACT SPECIFICATIONS Name of Commodity CHANA Ticker symbol CHARJDDEL Trading System NCDEX Trading System Basis Desi ex-warehouse Delhi inclusive of all taxes and levies Unit of trading 10 MT Delivery unit 10 MT Quotation/base value Rs per quintal Tick size Re 1 Quality Speci!cation Foreign Matter (Other than varietal admixture) Green (Cotyledon colour), Immature, Shrunken, Shriveled Seeds Brokens, Splits Damaged and Weeviled Moisture Varietal admixture Desi Chana 1% basis Kantawalla chana 1% basis 2% basis (Weeviled 2% max.) (Weeviled 2% max.) 10% basis 10% basis 3% max 3% max The material should be free of Mathara and Khesari and live infestation. Quantity variation Delivery center Additional delivery centres +/-5% Desi Chana to be delivered at Delhi (up to the radius of 50 kms from the municipal limits ) Kantawalla Chana to be delivered only at Indore (up to the radius of 50 km from municipal limits) Desi Chana can also be delivered at Bikaner (up to the radius of 50 km from municipal limits) As per directions of the Forward Markets Commission from time to time, currently Mondays through Fridays: 10:00 a.m. to 5:00 p.m. Saturdays: 10.00 a.m. to 2.00 p.m. The Exchange may vary the above timing with due notice. Trading Hours Upon expiry of the contract all outstanding positions will result in delivery. The penalty structure for failure to meet delivery obligations will be as per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008. Delivery Logic Compulsory Delivery Opening of contracts Trading in any contract month will open on the 10th day of the month. If 10th day of the month happens to be a non-trading day, contracts would open on the next trading day. Closing of contract Upon the expiry of a contract all outstanding open positions would 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 due date shall be the immediately preceding trading day of the Exchange, which is other than a Saturday No. of active contracts As per launch calendar Member's Position Limit 100,000 MT for all contracts or 15% of the market-wide open position, whichever is higher. For near month contracts: Maximum of 20,000 MT or 15% of the market-wide near month open position, whichever is higher (The following limits would be applicable from one month prior to expiry date). Client's Position Limit 20,000 MT For near month contracts: Maximum of 4,000 MT Final Settlement Price 8 The Final Settlement Price (FSP) shall be arrived at by taking the average of the last three days' lapstolled spot prices. For further details, please refer to the NCDEX website http://www.ncdex.com Contact our Product Managers for any queries/information: Sachin Purwar : 9999294456, Arun Yadav : 9930006791, Rohit Shukla : 9711371071