Groundnut Oil Likely To Rise By Rs 25 Per 15 kg

Rajkot: Prices of edible groundnut oil may go up further by Rs 10-25 per 15-kg tin in the Gujarat market. The reduction in duty on imported edible oil was unlikely to affect the uptrend, sources said. Although edible groundnut oil has already crossed the Rs 1,000 per 15 kg level, Gujarat State Civil Supplies Department has failed to check the rally even after raiding the premises of edible oil mills suspected of manipulation using the veto of the Essential Commodities Act, 1977.
Thirty-four millers attending the edible oil millers' meet in Rajkot on January 27, under the aegis of Saurashtra Oil Millers Association (SOMA), arrived at a consensus that they would not buckle under any possible pressure tactics the government might employ. Of the 650 edible oil processing units functional in the Saurashtra-Kutch region, 500 have already been shut down. So only the remaining 150 are operational, as no crop of groundnut used as raw material in our manufacturing process is available in the market, because of excessive cotton cultivation in this season. If this (more shutdown) happens, it will only add to government worries, with the prices of edible groundnut oil likely to skyrocket. Meanwhile, government officials, in a bid to control the damage of ever-flaring edible oil prices, said they would continue to raid edible oil millers' premises. To take stock of the situation the exact unprocessed stock lying with some edible oil millers in question, we have started extensive search operations and are doing the same in accordance with the legal provisions, said S K Nanda, principal secretary, Food & Civil Supplies Department. However, edible oil millers do not agree with the move. SOMA Secretary Samir Shah said: Government officials cannot seize our stocks using powers vide Essential Commodities Act of 1977 or 1981.

Five Lakh Opportunities To Be Up For Grabs In IT sector

Creation of not less than five lakh employment opportunities to benefit the unemployed youth in the rural areas as well as qualified youth in the Information Technology and industry sectors is being visualised by Chief Minister YS Rajasekahara Reddy.Of these, three lakh youths are likely to find placement in the IT sector in the next three years while the remaining jobs in rural areas would depend upon the completion of several industries in the pipeline.Emphasising these points in the speech delivered after taking the Republic Day Parade salute, the Chief Minister also dwelt upon the radical ?Bhooyagnam? aimed at recovering assigned lands from the rich and hand them over to their rightful owners, the poor.The Chief Minister was sorry that large extent of land given to the poor had slipped into the possession of the rich landlords and realtors. The task of regaining those lands was indeed a difficult one but the government was intent on pursuing it spiritedly. It has to be done without inconvenience to the poor. He appealed to the occupants of the assigned lands to voluntarily surrender them to the government for redistribution to the landless poor.Though the Republic Day salute is normally taken by the Governor, the Chief Minister stepped into his shoes as in-charge Governor Rameshwar Thakur had to take to the salute in Bhubaneshwar.Dwelling on the promising employment scenario in the state, the Chief Minister said that the leather garments and footwear units in Nellore alone would create about 25,000 jobs and MAS Holdings in Chintavaram in the same district another 30,000 jobs besides spinning mills in Nayudupet another 15,000 jobs.Numerous spinning and garment units coming up in Guntur, Anantapur, Chittoor, Hyderabad and Visakhapatnam would also generate considerable number of jobs. The Chief Minister outlined the multi-pronged strategy adopted by the government to enhance the employability of rural students in the IT sector in 2009, but stressed the need for improving the quality of education.He was hopeful of the software exports from the state touching Rs 19,000 crore this financial year compared to Rs 12,521 crore in 2005-06 and Rs 8,270 crore the year before.To attract students to education from the minority communities, the Chief Minister announced the launch of a novel programme of setting of pre-matric hostels in a dozen districts to begin with.On the education front, the government established a veterinary university and Vedic university in Tirupati, one university in each of the three regions, two engineering colleges in Kadapa and Karimnagar.

Rubber Improves On Buying

Kottayam: Physical rubber rates closed almost steady except ungraded rubber, which improved sharply to Rs 91 a kg from Rs 89.50 on aggressive buying from the north Indian sector. RSS 4 closed unchanged at Rs 98 a kg at Kottayam, while it improved by 50 paise to the same rate at Kochi. The February contract on NMCE weakened to Rs 101.30 (Rs 101.82), March contract to Rs 104.40 (Rs 104.91), April to Rs 108.20 (Rs 108.89) and May to Rs 112.30 (Rs 112.67) per kg for RSS 4. The volumes totalled 4,361 (3,239) tonnes and open interest 10,856 (10,549) tonnes. The February contract for the grade slipped to Rs 101.90 from Rs 102.82 a kg (159 lots) on MCX. RSS 3 flared up at its February futures to 263.4 Yen (Rs 95.81) a kg from 256.4 Yen at TOCOM. But the grade declined to Rs 94.94 against Rs 96.90 a kg at Bangkok spot.

Sugar Mills Delay Exports Amid Declining Global Prices

Mumbai: Sugar mills are delaying exports because global prices have dwindled since the country eased the ban on overseas sales three weeks ago. White sugar prices in London have fallen by 4% after India eased restriction on exports on December 18. Prices may fall further after the government lifts the ban completely by the month-end, making exports unattractive, industry officials said. ISMA represents non-state-owned producers. White sugar prices, which fell to a 12-month low in London on January 4, have slumped 32 per cent from a May peak of $497 a tonne on forecasts of higher supplies. Mills were expected to ship 1 million tonne, a third of an estimated surplus. The country's sugar production may rise to a record 24 million tonne in the year ending September, Union Minister for Agriculture Sharad Pawar said on January 5. That's 6 per cent more than the 22.7 million tonne estimated by the ministry in November. India halted sugar exports on July 4 to augment supplies and curb inflation. On December 18, only mills that imported raw sugar duty-free in 2005, under the so-called advance licence to meet a shortage, were permitted to export an equivalent amount. The ban may be lifted completely in three weeks, Pawar said. Sugar mills in southern India, the biggest holders of the advance licences, may sell at $340 a tonne free on board, while producers based away from the ports in northern states are seeking about $360 a tonne. White sugar for March delivery on Euronext.life gained 1.4 per cent to $337.9 a tonne in London on January 8.

Commodity Futures Increase Twofold In Apr-Dec

Mumbai: Turnover on Indian commodity futures exchanges increased twofold in the April to December period from a year earlier as prices of energy and metals logged record surge. Commodities worth Rs 27.4 trillion ($617 billion) were traded between April and December, compared with Rs 14.08 trillion a year earlier, the regulator Forward Markets Commission (FMC) said in a statement today. Commodities trading made records in many countries in 2006 as economic expansion in China and India, the world's fastest-growing major economies, and lack of new capacities, sent oil, gold, copper and zinc prices to records. Domestic exchanges are closed to overseas funds, although the country is the world's largest user of gold and the No 2 producer of sugar and rice. Turnover on the Multi Commodity Exchange (MCX) , the world's third-biggest bullion bourse after exchanges in London and Tokyo, and the nation's 22 other bourses surged fourfold to Rs 21.34 trillion ($479 billion) in the year ended March. MCX, in which Fidelity International, a unit of the world's biggest mutual fund company, owns 9 per cent, and the National Commodity & Derivatives Exchange Ltd (Ncdex), accounted for more than 90 per cent of the trades. Goldman Sachs owns 7 per cent of the Ncdex. Commodity exchanges in China traded record volumes in 2006, eclipsing Japan where transactions fell 18 per cent. Turnover on China's three bourses - the Shanghai Futures Exchange, Dalian Commodities Exchange and Zhengzhou Commodities Exchange - rose 56 per cent to a record 21 trillion yuan ($2.7 trillion). Volume surged 39 per cent to 449 million contracts, the China Futures Association said on its Web site on January 4.

Pulses, Spices In Bearish Mode

Mumbai: National Commodity and Derivatives Exchange (Ncdex) witnessed a mixed session in futures trading on the on January 3 in agri-commodities. With pulses market continuing in the bearish mode, spices joined them on the day. Conversely, grains garnered some strength during the session. Near-month contract of wheat jumped to Rs 1,018 a quintal from the previous close of Rs 1,012. Since the beginning of the year, this is the second consecutive rise in the closing prices. Maize too became strong by Rs 2 at Rs 734 a quintal. Chana seems to be getting no anchoring. Free fall continued and during the day, futures fell by Rs 19 closing at Rs 2,277 a quintal. Tur desi, which had closed on a stronger note on January 2, could not sustain at high levels and fell. It weakened by Rs 16 at Rs 1,922 a quintal. In spices category, while cumin seeds (jeera) closed at Rs 9,185, up Rs 90 a quintal, turmeric, chilli, pepper and turmeric prices fell. Chilli futures for March delivery fell by Rs 35 a quintal. On the back of good crop estimates, chilli ended the day at Rs 4,063 a quintal. The market is expecting a jump of over 75 per cent in its production this season. Turmeric, after a long period, dropped below Rs 2,000. It fell to Rs 1,988 a quintal against its previous close of Rs 2,032. Estimates suggest that overall production this season will be 55 lakh bags (each of 75 kg) against last year's 47 lakh bags. Pepper, which had climbed up by more than 10 per cent in the last one week, came back to its week-before level. It dropped below Rs 11,000 mark to close at Rs 10,751 a quintal, a fall of over 3 per cent.

Creation Of Agri Export Zones Faces Impediment

New Delhi: The Centre will be putting restrictions on creation of new Agriculture Export Zones and has urged the states to reconsider the proposals pending with them. The Centre had received 34 proposals for setting up of AEZs but it was decided that instead of sanctioning more AEZs, efforts should be made to strengthen the existing zones. AEZs, as opposed to Special Economic Zones, are agro climatic zones specializing in particular product spread over an area of a district. The decision to put a break on creating of new AEZs was taken after a "peer" evaluation of existing ones. Till today, the government has cleared 60 AEZs since the policy was formulated in 2001. However, they have failed to take off in a significant way even after five years of their existence. While the government has decided to put an embargo on sanctioning any more agri zones, it is not willing to put a cap on number of SEZs despite strong opposition, particularly from the Left. While the total agri exports from India aggregate to almost nine billion dollars, the contribution from AEZs remains much below expectations. The main agriculture products exported from India are foodgrains, nuts and seeds, meat, poultry and dairy products, processed foods, tobacco, tea and coffee.

Turmeric Prices May Fall On Fresh Arrivals

Mumbai: With new crop to start pouring in by mid-January, the turmeric market is expected to fall. According to the market experts, downward pressure on prices would be felt after April - the time till which the market would remain steady. At present, the market is continuing with a support level at over Rs 1,900 a quintal, thanks to the demand from the northern region on account of a chilling winter in that part of the country. In the Nizamabad spot market, turmeric was hovering around Rs 1,950 a quintal. The futures prices for April delivery on the National Commodity and Derivatives Exchange closed at Rs 2,034, up 0.79 per cent. The country is expecting a total production of around 52-55 lakh bags (75 kg each) this season, 17 per cent up from 47 lakh bags last year. The carry-forward stock will contribute another 5-6 lakh bags, making a total availability of 60 lakh bags. The country's second-largest turmeric producer Tamil Nadu reported some rains-inflicted crop damage, but it is not likely to affect the overall estimated crop production. Normally, the export demand firms up after Diwali. During the period (by the end of the harvesting period) almost half of production is absorbed by the market. After this, demand subdues and so do prices. According to traders, prices may touch the Rs 1,600 a quintal level this year. Of the country's total yearly turmeric production of about 55 lakh bags, Andhra Pradesh contributes the largest quantum at around 25 lakh bags, while Tamil Nadu comes next with 18-20 lakh bags. Maharashtra produces 4-5 lakh bags. Domestic consumption makes up 90 per cent of the country's total output. The rest is exported mainly to the sub-continent, the Gulf countries and South Africa.

London Coffee Futures Likely To Fall

London coffee futures is expected to ease on producer sales at the start of the new year, traders said on January 2. New York markets are closed on January 2 to mark the death of former President Gerald Ford. London robusta coffee futures risked falling under the weight of Vietnamese producer selling, traders said. Heavy origin selling from (top robusta producer) Vietnam (is) continuing," Redtower Research said in a daily research note, noting support in March at $1,571 a tonne and resistance at $1,609. Coffee prices in Vietnam, the world's second largest producer after Brazil, held steady in the past week, supported by fresh supply from the coffee harvest and robust export demand, traders said on January 2. A kilogram of robusta was offered at around 21,600 dong to 21,800 dong ($1.34-$1.35), similar to price levels in the past three weeks, traders said. Vietnamese robusta grade 2, 5 per cent black and broken were also stable at around $1,475 on January 2, on free-on-board basis, unchanged compared to last week. Vietnam's latest coffee output is expected to rise 32 per cent from the previous season to 15.83 million bags, with two-thirds of a bumper harvest now completed. One bag contains 60 kg of coffee beans.

Corn Futures Likely To Top 10-year high

Corn futures in Chicago likely to go up above a 10-year high and soybeans likely to extend a rally as demand increases for alternative fuels made from crops. Twenty of 26 traders, farm advisers and grain merchants surveyed December 29 by Bloomberg said to buy both commodities. Corn advanced 1.6 per cent last week, the third straight gain, and jumped a record 81 per cent in 2006. Soybeans climbed 3.4 per cent, ending the year up almost 14 per cent. Rising demand for alternative fuels is eroding supplies of crops normally used for animal feed or food processing. US production capacity for corn-based ethanol, already at a record, may double in the next two years, and the government said last month demand for biodiesel made from soybean oil may rise 17 per cent in 2007. The US is the largest producer and exporter of both crops. Corn futures for March delivery climbed 6.25 cents last week to $3.9025 a bushel on the Chicago Board of Trade, the ninth gain in the past 10 weeks. Prices reached a 10-year high of $3.935 in November after a Midwest drought reduced US production and demand for grain to make ethanol rose to a record. Corn's 57 per cent advance from September through December was the biggest for any four-month period since at least 1973. The March soybean contract up 23 cents to $6.9725 a bushel last week, the third consecutive weekly gain. Prices reached a 17-month high on December 29 and have jumped 28 per cent in the past three months, the most over a three-month period since October 2003. Most respondents surveyed December 22 correctly predicted corn and soybeans would rise last week. The corn survey has been accurate 55 per cent of the time since it began April 26, 2004. The soybean survey, which started six weeks later, has been correct 54 per cent of the time. US demand for corn used to make ethanol, a gasoline additive, will rise 34 per cent to a record 2.15 billion bushels in the marketing year that began September 1, the US Department of Agriculture said December 11.

Rubber Witness Steady Trend

Kottayam: Spot rubber finished steady in the New Year session though the global markets were on holidays. RSS 4 closed flat but strong at Rs 96 a kg at Kottayam as on Saturday. The trend was mixed but the under current was visibly optimistic as most of the grades including latex gained amidst better demand and low supply. The rubber futures opened higher but profit booking at higher levels pruned the gains partially on NMCE. The market finished in a mixed mood. The January contract concluded at Rs 99.86 (Rs 99.79), February at Rs 102.60 (Rs 102.93), March at Rs 106.16 (Rs 105.83) and April at Rs 109.01 (Rs 108.31) per kg for RSS 4. The transactions totalled 7,243 (5,773) tonnes and open interest 8,657 (8,379) tonnes. The January contract for RSS 4 improved to Rs 101.36 a kg from Rs 100.14 a kg on MCX. Spot rates were (Rs/kg): RSS-4: 96 (96); RSS-5: 92 (91.50); ungraded: 88.75 (87.50); ISNR 20: 93.00 (90.50) and latex 60 per cent: 67.35 (65.25).

Coir Board Unveils New Web Site

Kochi: Coir Board has unveiled its new official Web site, which gives all information on coir such as the processing aspects, wide array of products, research and development efforts going on in the industry etc. Coir Board, has unveiled Web sites www.coirboard.gov.in and coirboard.nic.in on Monday at a function organised at Coir Board office here. The site also gives the services offered by the Board to the trade and industry as well as providing online application facility to the stakeholders engaged in the coir sector for registering them as registered manufacturer exporter, applying registration-cum-membership certificate, registration as coir pith product manufacturers, coir machinery manufacturer etc.