Chana futures climb 3.78% as govt imposes 30% import duty

Chana prices spurted 3.78% to Rs 4,390 per quintal in futures trade today after the government yesterday imposed a hefty 30% import duty on chana and masoor dal to curb cheaper shipments and boost local prices that have fallen in view of record domestic production.
"To protect interest of farmers, the government has decided to impose 30% import duty on chana and masoor with immediate effect," the finance ministry said yesterday.
The production of chana and masoor is expected to be high during this rabi season. Besides, traders created fresh positions, supported by soaring demand from dal mills at the spot market amid restricted supplies from producing regions.
In futures trading at the National Commodity and Derivatives Exchange, chana for delivery in January spurted Rs 160, or 3.78%, to Rs 4,390 per quintal with an open interest of 47,220 lots.
Similarly, the commodity for February delivery edged higher by Rs 108, or 2.71 per cent, to Rs 4,089 per quintal in 86,090 lots.
Analysts attributed the rise in chana prices in futures trade to widening of positions by speculators, tracking a firm trend at the domestic spot market on strong demand.