Chana Commodity Trading

India is the world's largest producer, consumer as well as importer of chana (Chickpea). Indian production contributes to nearly
65-70% of the global production.

Out of the total pulses production in the country chana contributes to nearly 45-48%. India's annual production ranges between
6.5-7.5 million tons during past 4 years with year 2010-11 being an exception.

Indian spot markets are largely fragmented with very long value chain. The major players in the value chain are commission agents, broker's stockiest, wholesale traders, dal mills and retail outlets. The information between these participants is restricted and very slow.

What makes Chana good investment?

At present chana is the only pulse in the world which is being traded at the Indian futures exchanges.
The volume of trade and liquidity is high and is at par with the other commodities like soy complex which has attracted investor's interest since June 2004, when the national commodity exchanges were launched. Chana trading has been attracted by large corporates as well as retail traders due to its varied usage in food industry making it very attractive for hedging and arbitrage perspective.
Chana futures have high correlation with the physical market prices in India.

Why is Chana a wise investment for an Indian trader?

India is the largest consumer for Chana in the world along with being largest producer
Futures trade in India helps price discovery and brings transparency in the market
Active derivatives in futures segment allows price risk management to Indian traders
High liquidity and large volumes at futures gives Indian traders an edge to capture opportunity with respect to the changes in domestic and global demand and supply
It also allows the Chana importers to hedge in Indian Rupee terms and thus eliminates the currency risk

How can Kotak Commodity help me invest in Chana?

The Kotak Commodity Gateway Account will give you access to research and trading facilities to conduct chana trading in India along with other agricultural commodities. While SMS alerts and Call & Trade will provide you regular updates on chana prices in India, our expert research reports will help you make informed decisions. Our brokerage rates are attractive. The best part is that our Gateway account is a lifetime free trading account.

To learn more about Kotak Commodity Gateway Account, please click here.

Useful Links - NCDEX | MCX | NYMEX | KITCO | CBOT | CME | AGMARKNET | WORLD GOLD | FMC | KYC Regulations
BCE/TCM/CORP/0021, BCE Trading Member Id: 545, NCDEX/TCM/CORP/0479, NCDEX Trading Member id 00155, MCX/TCM/CORP/0479, MCX Trading Member Id 10440, NCDEX Spot Trading Member Id: 10040, SEBI registration no - INZ000044135