Aug 17 2009 2:54PM
MUMBAI, Aug 17 (Reuters) - India's chana futures fell on Monday afternoon on expectations of government intervention in the market to check prices, but scanty rains and firm prices of kharif pulses limited the losses, analysts said.
"Traders are worried about government moves. After implementing stock limits, it may take more steps," said a research analyst with SMC Comtrade Ltd.
India's north-western state of Rajasthan imposed stock limits on pulses in an attempt to check hoarding, a senior government official said last week.
India's prime minister has asked state governments to enforce limits on stocks that can be held by traders to check hoarding of essential commodities.
At 2:52 p.m., the September futures contract was down 1.33 percent to 2,368 rupees per 100 kg.
Chana, a winter-sown pulse, is priced lower than kharif pulses like tur, urad and moong, but follows their trend as consumers tend to buy the cheaper substitute, pushing up its price as well.
In the Delhi spot market, the price fell by 38 rupees to 2,292 rupees per 100 kg.
GUAR:
Indian guar futures eased on rainfall forecast over key growing areas, but fears of lower output limited the downside, analysts said.
Weather department on Monday forecast rains over Rajasthan and Haryana, key growers of the commodity, in the next 48 hours. See (http://www.imd.gov.in/section/nhac/dynamic/allindianewct.htm)
Up to 40 percent of the standing guar crop in Rajasthan, accounting for four-fifth of the country's guar area, has been damaged due to poor monsoon, a top official said last week.
At 2:53 p.m., the September futures contract was down 0.35 percent to 2,270 rupees per 100 kg.
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