The pace of export of chana from Australia is very slow.
21-Nov-2024 12:42 PM
The pace of export of chana from Australia is very slow.
It looks like the export of chana from Australia is facing a few key challenges, which could have broader implications for global supply and prices, particularly in India. Here's a breakdown of the key points:
Slow Export Pace: The pace of chana exports from Australia is slower than expected, partly due to logistical challenges like shortages of labor and containers. This is impacting the availability of chana in key markets.
Upcoming Shipments: Despite the slower pace, a couple of vessels carrying sizable quantities (20,000-30,000 metric tons and 30,000 tons) are expected to reach Indian ports in the coming weeks, with another shipment arriving by the first or second week of December. This will help meet some of the demand but may not be enough to address all the shortfalls.
Total Deals Done: Around 300,000-400,000 tons of chana have already been contracted for export, but the slow pace of shipping means that the actual delivery is lagging behind, contributing to delays.
Port Destination: So far, all the export deals have been directed to Mundra Port, which might suggest that Indian traders are focusing on this major port for imports, potentially streamlining the supply chain to this region.
Demand Outlook: Demand from neighboring countries like Bangladesh and Pakistan is currently subdued, but it is expected to pick up as Ramadan approaches, which could drive up consumption. This uptick in demand could potentially create pressure on supply if export logistics remain slow.
Farmer Sentiment in Australia: Australian farmers are less motivated to sell their chana at the current low prices, which could limit the overall supply in the export market and further slow the pace of shipments.
Indian Domestic Impact: In India, the sowing pace for chana has slowed down, particularly in major producing regions. This could lead to reduced domestic production in the coming months, contributing to tighter local supply.
Potential Price Support: Given the slower export pace from Australia, logistical bottlenecks, and the potential for reduced domestic production in India, there is a likelihood that chana prices in India may receive upward support as the supply tightens.
Overall, these developments point to potential price stability or even increases in the Indian market due to slower imports and domestic production concerns. However, if demand from Pakistan and Bangladesh picks up ahead of Ramadan, and if export conditions improve, this could help balance out the market.