Pepper Future Increases On Buying Support

Kochi: Pepper futures market saw slight improvement on purchasing support on Mat 30. State Warehousing Corporation has made available some space and about 25 truckloads of pepper would be stored there in two days. In the international market Vietnam was said to be better with FAQ 500 GL moving up to $3,650 a tonne (f.o.b.). V Asta was being quoted at $4,000 (f.o.b.). Indonesia and Brazil were firm at $3,900-3,950 a tonne (f.o.b.). Indian parity was at $3,850-3,900 a tonne (f.o.b.) and hence remained competitive. Jun contract on NCDEX increased to Rs 27 a quintal on May 30, to close at Rs 13,690 from Rs 13,663 on May 29.
On NMCE June contract improved by Rs 68 a quintal to close at Rs 13,350 from Rs 13,282. July and October fell by Rs 45 and Rs 50 a quintal respectively while August and November increased by Rs 245 and Rs 50 a quintal respectively. September remained unchanged. The total turnover on NCDEX fell by 7,190 tonne to 18,635, while on NMCE it fell by 422 tonne to 1,961 tonne. The total open interest on NCDEX fell by 14 tonne to 25,106 tonne. June fell by 357 tonne to 11,139 tonne while July and August improved by 141 tonne and 183 tonne respectively to 9,255 tonne and 2,906 tonne.On NMCE total open interest moved up by 67 tonne to 3,404 tonne. June position also increased by 68 tonne to 2,474 tonne.

Coonoor Tea Sales Witnesses Low Volume

Coonoor: With the arrival of fresh tea continuing to be low, the catalogue for this week's auctions at the Coonoor Tea Trade Association (CTTA) amounted only 7 lakh kg. Although the volume is some 65,000 kg higher than the previous week, the overall offer is low enough to pressurise the market. Of the 7-lakh kg, as much as 4.93 lakh kg belong to the leaf grades, while 2.07 lakh kg belong to the dust grades. The proportion of orthodox variety is low in respect of both leaf and dust grades. Last week, quotations conducted by the brokers showed bids ranging from Rs 41 to 43 a kg for the plain leaf sorts and Rs 60 to Rs 68 for the brighter liquoring sorts.

Coimbatore Tea Auction Sees Fair Demand

Coimbatore: The tea offerings at the weekly auction conducted at the Tea Trade Association of Coimbatore soared to 4.73 lakh kg, with leaf grades accounting for 1.77 lakh kg of the total offerings. There was fair demand for the orthodox leaf. The market for high grown and mediums saw an easier trend by Rs 2 to Rs 3 a kg. The market was easier by Re 1 to Rs 2 a kg. Exporters and internal purchasers lent fair support. The major blender operated on medium teas selectively. There was a fair demand for the CTC dust at lower levels. Internal purchasers were the main stay of the market with selective support from HLL/AVT/INDCO and local packeteers. The orthodox high grown was quoting between Rs 56 and Rs 72 a kg, while the best CTC teas slipped to Rs 47 and Rs 52 price band.

Darmona Estate Teas Bring In Good Price

Coonoor: Darmona Estate teas remained to fetch a good price at the auctions of the Coonoor Tea Trade Association (CTTA) this weekend. At Sale No: 21, its RD grade teas auctioned by J. Thomas and Co, got Rs 108 a kg. Kannavarai Estate got Rs 82, followed by Highfield Estate Special at Rs 81 and Professor Rs 80. Green View, Homedale and Warwick got Rs 79, while Vigneshwar Estate Rs 75. Among the orthodox teas from the corporate sector, Corsley got the highest price of Rs 127 a kg, followed by Curzon Rs 124, Kodanaad Rs 117, Havukal Rs 110, Kairbetta Rs 108, Chamraj and Glendale Rs 105.

Rubber Price Witnesses Down Trend

Kottayam: Global and domestic rubber prices remained under pressure on May 28. The trend was followed here both in physical and futures markets. In spot, sheet rubber fell to Rs 90 from Rs 91 a kg at Kottayam and Kochi. On National Multi Commodity Exchange, the June contract declined sharply to Rs 88.50 (91.32), July contract to Rs 89.35 (92.60), August to Rs 88.65 (91.36) and September contract to Rs 86 (89.14) per kg for RSS 4. The June contract for the grade also dipped to Rs 88.50 (90.97) a kg on MCX. Spot prices were (Rs/kg): RSS-4: 90 (91); RSS-5: 89 (90); ungraded: 88 (88.50); ISNR 20: 89 (89) and latex 60 per cent: 63.65 (64.20).

Kochi Tea Auction Sees Mixed Trend

Kochi: Good general demand was observable at the Kochi tea auction that had 10.35 lakh kg of dust tea on offer. Price of the best CTC varieties dropped by Rs 2, while medium CTC prices eased by Rs 1-2. Best CTC varieties brought Rs 60-70, medium CTC Rs 52-58, while below medium fetched Rs 41-44. High grown BOPD varieties fetched Rs 102-116, medium BOPD ranged at Rs 46-47 and secondaries were at Rs 36-40. High grown leaf prices eased by Rs 1-2, as purchasers pursued quality. Medium orthodox prices also eased by Rs 1-2. Whole leaf grades of medium orthodox varieties remained firm. Best Nilgiri varieties were quoted at Rs 62-76, medium orthodox was at Rs 50-70 and plain orthodox ranged between Rs 42-47. Kodanad BOPD fetched the top price at Rs 116 in the dust category, followed by Parkside BOPD at Rs 102, Pasuparai FD at Rs 76 and Pasuparai SFD at Rs 74. Chamraj OP fetched the top price of Rs 128 in the leaf segment, followed by Havukal BOPF at Rs 120, Kodanad BOPF at Rs 116 and Chamraj FOP at Rs 111.

Pepper Future Market Sees Sharp Fall

Kochi: Pepper futures market saw a sharp decline due to pessimistic activities by cartels last week. The prices declined by Rs 1,133 to Rs 1,513 a quintal. Turnover on NCDEX increased 48,711 tonnes to 2,18,555 tonnes, while on NMCE it was up 3,191 tonnes to 19,819 tonnes. Open interest on NCDEX during the week declined 942 tonnes to 25,478 tonnes, while on NMCE it increased by 115 tonnes to 3,314 tonnes. Spot prices also declined in tandem with the futures market trend by Rs 400 a quintal during the week to Rs 13,800 (un-garbled) and Rs 14,400 (MG 1) on May 26. Tight supply position seems to prevail. As long as Indian prices are competitive in the international market there is potential to infuse in the commodity. According to International Pepper Community (IPC) report (May 21-25) for the week the overall market was quiet with local prices at most markets reporting a slump ranging from one to two per cent and f.o.b prices registering almost flat levels. At Kuching, local price is down by 2 per cent to close at $3,107 a tonne, while f.o.b price remained unchanged at $4,200 a tonne. Local price at Kucing was down by 3 per cent over the week to close at $4,320 a tonne while FOB price remained unchanged at $5,200 a tonne.

Increase In Mentha Oil Futures Likely To Be Capped

Chennai: Upward movement in mentha oil futures is likely to be capped, while spot prices are likely to fall on new arrivals pressurising the market. Mentha oil June contracts on MCX are likely to be range-bound between Rs 500 and Rs 530 a quintal. On MCX, the contract ended at Rs 522 on May 26, while on NCDEX, it closed at Rs 518. Spot prices (Chandausi) ruled at Rs 575.50 a quintal. However, good demand was hopped from exporters from the new crop and arrivals will put pressure on prices in the Barabanki region. The broking services firm said refined soyabean oil prices were hoped to gain on firm overseas market, while guar futures were hoped to move in a narrow range with a positive bias. Refined soyabean oil was quoted at Rs 580 for June contracts on MCX and NCDEX. Copper prices will be driven by fund activity and short-covering seen on May 25, could bring stability into the system that saw prices declining 11 per cent since the correction began two weeks ago. Copper on MCX could take support at Rs 295.6 a kg levels with strong resistance coming in at Rs 307-308.

Pepper Futures Fell

Kochi: Pepper futures decline on activities of bear operators despite prices of other origins ruling firm. Besides, quantity restrictions coupled with lack of adequate space in the warehouses have also contributed to the decline. The falling trend in the futures market is driving away purchasers. Exporters were ready to purchase but limited quantity was available and traded. May delivery was available below the price of ungarbled pepper. Some of the Indian operators said to have sold to overseas purchasers at $3,850- 3,900 a tonne (c&f). Buyers are interested in Jul/Aug/Sep.
The prices in Vietnam reported to have bounced back to $3,480 a tonne for 500 GL (f.o.b). 550 GL was being offered at $3,630 a tonne (f.o.b), while V Asta was at $4,050 a tonne (f.o.b). L Asta was quoted at $4,035 a tonne (f.o.b), while B Asta was at $3,900 a tonne (f.o.b). The decline in other contracts was from Rs 330 to Rs 455 a quintal.On NMCE June contract dipped by Rs260 to Rs 13,351. The drop in other contracts was from Rs 280 to Rs 579 a quintal. The total turnover on NCDEX declined by 10,114 tonnes to 34,254 tonnes while that on NMCE fell by 362 tonnes to 3,324 tonnes. The total open interest on NCDEX increased by 324 tonnes to 25,765 tonnes. June position fell by 510 tonnes to 12,325 tonnes, while July moved up by 701 tonnes to 9,171 tonnes.

Rubber Board Against Ban On Futures Trade

Chennai: The Rubber Board does not favour any prohibition on futures trading in the commodity. At the same time, they will like the futures to have a positive effect on the growers. The share of profit of intermediaries in rubber trade is very low. Therefore, futures actually do not contribute much to the growers' return. The Board had called for a meeting of various players in the market a month back to discuss problems arising out of futures trade. Rubber dealers and the Automotive Tyre Manufacturers Association, the apex body of tyre companies that buy half the rubber produced in the country, had demanded a ban on futures trading.
It was also decided to recommend to the authorities that they should not allow more than two per cent fluctuation in prices in futures. The problem arose because a small number of large-scale holders were reported to have been behind the six per cent plus fluctuation in futures price in January. The Rubber Board had called for the meeting following complaints that the futures trade was being manipulated. Rubber for June delivery on the MCX on May 25, recorded a negligible turnover of Rs 44 lakh via just 49 trades, while July contract turnover amounted to Rs 15 lakh on 17 trades.

Sugar Futures Surges Up 2.14 Pc On NCDEX

Mumbai: Sugar futures on NCDEX on May 24, gained 2.14 per cent to increase to Rs 1,291 a quintal on unconfirmed news that the Government likely to mop up buffer stock limit from 20 lakh tonnes to 50 lakh tonnes. Spot price of sugar in Mumbai markets was also high by Rs 50 at Rs 1,350 per quintal. Moist and cold weather during the next 10 days in south-eastern state of Sao Paulo, where 60 per cent of Brazil's sugar cane is grown, may hit harvesting. The delay in harvesting is likely to slowdown sugar supplies.
Brazilian cane farmers usually wait for dry weather to harvest. Brazil is hoped to produce a record 513.1 million tonnes (mt) of cane, up from 455.3 mt in 2006. In India, sugar output in 2005-06 season is seen topping the earlier estimate of 27.5 mt. Production of 22 mt has already been achieved by the end of April. With one more month to go for the end of crushing, the total output will cross 26 mt.

Low Tea Volume At Coonoor

Coonoor: The volume of teas coming up for sale at the auctions of the Coonoor Tea Trade Association (CTTA) remains to be low with the catalogue for this week totalling 6.34 lakh kg. In the corresponding sale of last year, a volume of 11.3 lakh kg had been offered. Of the 6.34 lakh kg, as much as 4.34 lakh kg belong to the leaf grades and only 2 lakh kg, dust grades. Again, as much as 5.8 lakh kg belong to the CTC variety and only 0.54 lakh kg, orthodox variety. In the leaf category, orthodox accounts for only 0.22 lakh kg, while the CTC is 4.12 lakh kg. In the dust category, orthodox comes to 0.32 lakh kg, while the CTC is 1.68 lakh kg. The low volume arises from the dry weather of the last couple of months. The prices of quality teas rose even as other struggled to remain steady.

Pepper Future Market Improves

Kochi: Pepper futures market increased on May 24, on over speculation. Vietnam reportedly decreased the price of 500 GL to $3,300 a tonne (f.o.b) but V Asta was being offered at $4,000 a tonne (f.o.b). Brazil and Indonesia were steady. Indian parity was at $3,750-3,800 a tonne (c&f) and hence continued competitive. Purchasing interest was there from overseas. Purchasers had covered some quantity from India and other origins Brazil and Indonesia via aggressively purchasing May and June and then slowed down for about a fortnight. June contract on NCDEX increased by Rs 196 a quintal to Rs 14,002 on May 24.
The increase in other contracts was from Rs 279 to Rs 363 a quintal. The increase in other contracts was from Rs 70 to Rs 250 a quintal. The total turnover on NCDEX fell by 4,558 tonnes to 44,368 tonnes, while on NMCE it declined by 622 tonnes to 3,686 tonnes. The total open interest on NCDEX moved up by 974 tonnes to 25,441 tonnes. June position fell by 658 tonnes to 12,835 tonnes while July increased by 1,398 tonnes to 8,470 tonnes. In tandem with the futures market trend spot prices increased by Rs 300 a quintal on Thursday to close at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1).

Futures Meltdown Makes No Affect On Cumin Spot Rates

Mumbai: Though cumin seed (jeera) futures market fell all of a sudden in the last few trading sessions, the spot market has managed to insulate itself from any drastic fall. Instead of expecting weakening of prices, marketmen ruled out any further slips in the physical market saying it should stabilise and firm up soon. The near month futures contract of jeera fell by over Rs 12 a kg during the period, whereas it dropped only Rs 3-4 a kg in the Unjha market helped by the arrival of 3,500-5,000 bags (55 kg each) over the last couple of days. The prevailing rates of jeera on Wednesday in Unjha were in the range of Rs 120-122 a kg, which during last week were ruling around Rs 125-127 a kg. Arrival was reported to be at 4,500 bags. On the National Commodity and Derivatives Exchange (Ncdex), the near month contract for jeera gained some strength and bounced back today. It closed at Rs 11,670 a quintal against the previous close of Rs 11,383 a quintal, up 2.52 per cent. Market activities in Unjha have been quite lull since April with lacklustre demand leading to range-bound movements in jeera prices. As the arrival season is coming to an end period, supply constraints may stoke Unjha market with bullish sentiments. Traders, too, subscribed to this view saying the upward market movement would take a month. The last fortnight, on an average, has seen an offtake of 4,500 bags a day in the Unjha market. The country's overall production estimates for the current year are 55,000 tonnes against 85,000 tonnes last year. At the same time, conflicting reports from Turkey and Syria (key producing countries other than India) of crop damage are still persisting. Traders in Unjha said there were indications of 25-30 per cent crop damage in these two countries, but there is no official confirmation on it.

Cumin Exports From Rajasthan Up 23 Times

Jaipur: Rajasthan has witnessed a significant rise in exports of dhania (coriander seeds) and jeera (cumin) in the last one year. Export of coriander seed went up around 1.5 times and that of cumin by over 23 times in 2006-07 (April-March). The exports of coriander seeds touched 4.3 million kg in 2006-07 against 2.8 million kg in 2005-06. Similarly cumin exports went substantially up from 36,000 kg in 2005-06 to 836,000 kg in 2006-07. Both coriander and cumin on an average are sown in over 200,000 hectares between October and November and Rajasthan with a share of over 50 per cent is the largest producer of both the spices in the country.

TN Cuts VAT On Processed Tea

Chennai: The Tamil Nadu Government on May 23, declared that the rate at which value-added tax is levied on processed tea will stand decreased from 4 per cent to 1 per cent. The Government's revenue sacrifice on account of this is pegged at Rs 2.07 crore.

Pepper Future Witnesses Down Trend

Kochi: The pepper futures market continued its falling trend on May 23, mainly considered as fallout of the restrictions introduced by the Exchanges. Indian exporters who were catching up with the international market have been put into difficulty now. The market sees high volatility in the trade because of the increased intra-day trade, which in fact has made the trade an online gambling. Add to this the non-availability of space in the warehouses as they become fully occupied when the contract nears maturity. Spot availability is limited while the nearest month is available cheap and the exporters are buying it to cover. Indian parity is at $3,800-$3,850 a tonne (c&f) as against Indonesia's Lasta at $3,850 a tonne (fob) and Brazil's B Asta at $3,800 (fob).
May contract on NCDEX fell by Rs 80 a quintal on May 23, to close at Rs 13,754 from Rs 13,834 on May 22. The drop in other contracts was from Rs 43 to Rs 111 a quintal. On NMCE, May contract declined by Rs 117 a quintal to close at Rs 13,539 from Rs 13,656. The decline in other contracts was from Rs 86 to Rs 391 a quintal. The total turnover on NCDEX was up by 3,424 tonnes to 48,926 tonnes while on NMCE it declined by 50 tonnes to 4,308 tonnes. The total open interest on NCDEX dropped by 698 tonnes to 24,467 tonnes while June position declined by 1,111 tonnes to 13,493 tonnes. Spot prices ruled firm at previous levels of Rs 13,700 (un-garbled) and Rs 14,300 (MG 1) on May 23.

Curbs On Positions Lead To Volatility In Black Pepper

Kochi: Black pepper futures on the National Commodity and Derivatives Exchange (NCEDX) witnessed higher in a volatile trade on May 23 following the Forward Markets Commission's (FMC) restrictions on position limits. Market buzz over manipulation by a few traders led to panic selling, with prices of all the contracts dropping by an average of Rs 400 a quintal. The near-month contract on the NCDEX opened at Rs 13,685, dropped to Rs 13,186 and recovered to close at Rs 13,950 a quintal. The July contract, which opened at Rs 14,190, also dropped to Rs 13,600 and ended stronger at Rs 14,480 a quintal. Of late, the FMC unveiled stiff norms to curb unhealthy speculation by limiting individual trader positions to 100 tonnes for the near-month contract and 500 tonnes for the other contracts. However, traders are in a fix and have been complaining that the norms restrict them from hedging larger quantities. In the meantime, Vietnam, the world's largest producer of black pepper, kept the prices almost steady at $3,600 for 500 GL, $3,700 for 550 GL and $3,850 for ASTA a tonne each. India is the lowest destination for importers as the country is quoting an average of $3,750 a tonne.

Kerala Govt Initiates Measures To Rejuvenate Coir Sector

Thiruvananthapuram: The Kerala Government has initiated a number of steps to rejuvenate the State's coir sector. As part of the efforts, the activities of the public sector Kerala State Coir Corporation and Foam Mattings Ltd will be redefined so as to make them work for the integrated development of the coir sector. The Government has prepared a revival proposal for the Kerala State Co-operative Marketing Federation Ltd (Coirfed), the apex body of coir co-operative societies, and has commenced work. The Government had earmarked Rs 51 crore for the coir sector in this year's Budget, which was the highest budgetary allocation for the sector so far in the State.
The total amount to be written off was Rs 32.65 crore. Along with this, the Government loans as also the Government-guaranteed loans taken by the societies and the interest accrued on them would be converted into share capital. The societies will be benefited to the extent of Rs 65.12 crore through this measure. The marketing campaign for coir products under the brand name Kerala Coir-The Golden Yarn of God's Own Country will be introduced soon.

Wheat Imports To Be Costlier Due To Higher Freight Costs

Mumbai: Owing to higher freight costs and an increase in global prices of the commodity, India may have to pay as a minimum of a third more than it did last year to buy the grain. The government may receive offers between $264 a tonne and $281 a tonne to import 1 million tonnes of wheat in a tender that closed on May 21, according to a median forecast of eight traders and analysts. That compares with an average $205.31 a tonne buyers paid last year. The country is buying wheat for a second year to boost reserves as demand exceeds production. The purchases come at a time when freight rates have climbed to more than a two-year high as China and India, the world's two most-populous nations, buy more grain and iron ore. Wheat prices have advanced 16 per cent in the past year as bad weather damaged crops from the US to Australia. The Baltic Dry Index, an overall measure of commodity-shipping costs, has risen 48 per cent this year. The country's wheat imports might total 5 million tonnes this year.

Effective Utilization Of Cashew Apple Suggested

Mangalore: Effective use of around 40 lakh tonnes of cashew apple, which is going waste every year, came up for discussion at the two-day national seminar on cashew at Raipur in Chhattisgarh last week. Conducted by the Directorate of Horticulture of Government of Chhattisgarh, the Directorate of Cashewnut and Cocoa Development and the Chhattisgarh Ministry of Agriculture, the seminar was attended by representatives from the Cashew Export Promotion Council of India (CEPCI). It was informed that Goa is the only State where cashew apples are being gainfully utilised to make feni, a distilled alcoholic liquor. CEPCI will request the Centre to persuade the governments of the cashew-producing states to exempt production of feni from cashew apples outside the ambit of excise laws. All the concerned will be requested to organise national-level meetings, at least once every year, so that the stakeholders could have a common platform for discussing and resolving issues.

Cotton Lint Prices Remain Steady

Coimbatore: Cotton lint prices continued firm during the first fortnight of May. According to the South India Cotton Mills' Association sources, seed cotton arrivals remained in small quantities in Gujarat during the last fortnight. The latest survey reveals that the arrival volumes (all India) crossed 256 lakh bales so far against 222 lakh bales during the corresponding period of the earlier year. Desi lots quoted between Rs 1,500 and Rs 1,650 per maund spot, whereas the J 34 saw ginned ruled between Rs 1,860 and Rs 1,920 per maund spot. Market continued steady in Gujarat and Madhya Pradesh. Shankar 6 ranged between Rs 18,500 and Rs 18,800 per candy spot, V797 in the Rs 14,700 and Rs 15,000/candy range and the MECH 1 and H4 around Rs 18,500/candy. In Maharashtra, lint prices ranged between Rs 17,800-18,800 for fibre with 28 to 30mm strength. Andhra Pradesh MCU 5 ruled between Rs 19,600-21,800/candy. DCH 32 (Karnataka) touched a high of Rs 32,000/candy.

Pepper Future Witnesses Sharp Decline

Kochi: Pepper futures market saw a sharp fall on May 21, on reports that Vietnam has decreased the prices of 500 GL to $3,600-$3,650 a tonne (fob). Besides, strong rupee against the dollar has also influenced the market. Hence, exporters could cover from the exchange and export. Indonesia also reportedly lowered their price of Lasta to $3,850 a tonne (fob) while the Indian parity ruled at $3,900-3,950 because of the strong rupee. Though the futures prices decline by Rs 6 to Rs 7 a kg on Monday the decline in spot was just Rs 2 a kg. June contract on NCDEX fell by Rs 763 a quintal to close at Rs 14,449 on May 21from Rs 15,212 last May 19. On NMCE, June contract declined by Rs 649 a quintal to close at Rs 14,200 from Rs 14,849 while the fall in other contracts was from Rs 406 to Rs 675 a quintal.
The total turnover on NCDEX increased by 11,766 tonnes to 30,648 tonnes while that of NMCE was by 1,297 tonnes to 2,592 tonnes. The total open interest on NCDEX fell by 616 tonnes to 25,804 tonnes. June position fell by 1,575 tonnes to 15,879 tonnes while July increased by 928 tonnes to 6,209 tonnes. June position also went up by 128 tonnes to 2,621 tonnes. The spot prices in tandem with the futures market trend dropped by Rs 200 a quintal to close at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1) on May 21.

SICA, SIMA Offer Support To Karnataka Chamber

Coimbatore: Coimbatore-based cotton trade/R&D bodies South India Cotton Association (SICA) and SIMA-Cotton Development and Research Association (SIMA-CDRA) have proposed to support the Hubli-based Karnataka Cotton Association in its efforts to improve the development of cotton crop in Karnataka through a vision document. This offer was conveyed to representatives of the Karnataka Cotton Association and the Karnataka Chamber of Commerce who had a meeting with SICA, SIMA-CDRA and members of the apex spinners body, Southern India Mills Association (SIMA) on May 14. Karnataka's cotton production declined from 15 lakh bales in 1996 to six lakh bales in 2006. The Tamil Nadu textile industry's interest in Karnataka crop largely rests on the latter's extra long staple DCH-32 variety, much in demand among the spinners here producing finer count yarn.

Rubber witnesses up trend

Kottayam: Spot rubber made smart makes profit in the weekend session. Sheet rubber flared up to Rs 89.50 and Rs 90 from Rs 88.50 and Rs 89 a kg respectively at Kottayam and Kochi. The June contract firmed up to Rs 91.25 from Rs 90.87 a kg on MCX. The June contract for RSS 4 increased to Rs 91.67 (91.36), July to Rs 93.47 (92.93) and August contract to Rs 93.25 (93.13) per kg, while the far month September contract slipped marginally to Rs 90.60 from Rs 90.76 a kg on NMCE. The open interest stood at 7,006 (6,897) lots with 4,018 (3,975) lots in June, 2,302 (2,240) lots in July, 618 (617) lots in August and 68 (65) lots in September. Spot prices were (Rs/kg): RSS-4: 89.50 (88.50); RSS-5: 88 (87.50); ungraded: 87.50 (86); ISNR 20: 88 (87) and latex 60 per cent: 64.20 (63.15).

Cotton arrival estimated at 256 lakh bales in 2006-07

Coimbatore: Total arrivals of cotton so far (for the second week of May) in the 2006-07 season (Oct-Sept) is pegged at 256 lakh bales on all-India basis as compared to the 222 lakh bales recorded for the same period during last year. According to the South India cotton Association (SICA) sources, Gujarat, whose total production for the current season is estimated to reach 10 million bales, is reported to have moved out close to 90 lakh bales, with only another 10 lakh bales still remaining with the farmers. SICA sources maintained that the market appeared firm price-wise despite the sluggishness prevailing in trade enquiries both in local market and exports. The trade has discounted scope for any easy price tendency as the cotton farmers remained reluctant on liquidating their stocks.

AP Govt to request Centre's help on MSP for paddy

Hyderabad: The Andhra Pradesh Government has decided to ask the Centre to enhance the minimum support price (MSP) for paddy by Rs 100 per quintal for the season like the recent support declared for wheat while extending the duration of paddy procurement. The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, will address a letter to the Prime Minister, Dr Manmohan Singh, on May 21, asking his support to increase the MSP mainly to offset the increased labour charges and input costs during the season.

The Centre had recently declared enhancement of Rs 100 per quintal for wheat, which had given a lot of relief for the farmers in the North and similar support to paddy would be timely for paddy cultivators. During the kharif season, paddy was cultivated in 22.17 lakh hectares, while it was 13.15 lakh hectares in rabi. Andhra Pradesh had become the granary of South due to wide spread paddy cultivation. The Chief Minister said the Government had taken several initiatives to offer better marketing opportunities for farm production. The Government had paid Rs 40 as bonus to every paddy grower wherein the Centre had fixed Rs 580 per quintal for the common variety.

Rubber Witnesses Mixed Trend

Kottayam: Physical rubber prices were mixed on May 18. Covering groups were hesitant to offer better quotes as tyre sector continued to stay inactive against their expectations. The grade increased to Rs 88.50 and Rs 89 respectively at Kottayam and Kochi from Rs 88 a kg on May 17. The rubber futures increased further as TOCOM resumed the upward journey after Thursday's technical correction. On NMCE, the June contract increased to Rs 91.40 (89.54), July to Rs 93.40 (91.59) August to Rs 93.24 (91.73) and September to Rs 90.70 (89.66) per kg for RSS 4. Spot prices were (Rs/kg): RSS-4: 88.50 (88); RSS-5: 87.50 (87); ungraded: 86 (86); ISNR 20: 87 (87) and latex 60 per cent: 63.15 (63.15).

Cardamom Prices Witness Volatility

Kochi: Cardamom prices during the week fluctuated at the auctions held in Kerala and Tamil Nadu despite sharp decline in arrivals. End of the season coupled with thin arrivals might result in the auctioneers suspending auctions till the beginning of next season expected by end-July/early August 2007. The individual auction average prices showed an upward swing from Rs 332.01 on May 11 to Rs 361.39 on May 15. However, it declined to Rs 354.09 on May 16.
Eight-mm bold capsules fetched the maximum price of Rs 476 a kg while the minimum was Rs 231 a kg. Eight-mm bold was fetching Rs 450-Rs 480 while 7.5 mm and 7 mm was sold at Rs 425-Rs 450 and Rs 390-Rs 410 a kg, respectively. Bulk was fetching Rs 380-Rs 390. Total arrivals during the current season up to May 16 decline to 7,806 tonnes from 8,976 tonnes during the same period the previous season. Sales also decline to 7,167 tonnes from 8,379 tonnes. However, weighted average price increase to Rs 311.60 a kg from Rs 215.03 a kg last season.Prices of the graded varieties as on May 12 were AGEB Rs 440-Rs 450, AGB Rs 375-Rs 385, AGS Rs 355-Rs 365 and AGS 1 Rs 310-Rs 320 a kg. Prices in the local market in Bodinayakannur on May 16 were AGEB Rs 430-Rs 440, AGB Rs 360-Rs 370, AGS Rs 340-Rs 350 and AGS 1 Rs 300-Rs 310.

Pepper Futures Witnesses Down Trend

Kochi: Pepper futures market down on May 16, on alleged hammering by bears cartel despite the fact that all the other origins ruled firm. Vietnam reported to have offered 500 GL at $3,800 a tonne (f.o.b) and 550 GL at $4,000 a tonne while white pepper was at $5,400 a tonne (f.o.b). Vietnam was not selling Asta grade pepper. Indian parity is at $4,000 a tonne (c&f). According to international market players, given the present market trend, US purchasers are reported to have adopted a wait-and-watch attitude, anticipating that the Indian prices would decline in the coming days following the revision of the open position and near month level limits for members and clients. There is reportedly a demand from West Asian countries for 500 GL Indian pepper at premium price. Exporters were covering from the futures and offering to the overseas market. May contract on NCDEX fell by Rs 381 a quintal to close at Rs 14,110 on May 16, from Rs 14,491 on May 15.
The decline in other contracts was from Rs 309 to Rs 392 a quintal. On NMCE, May contract matured and 366 tonnes of pepper delivered. June contract fell by Rs 220 to close at Rs 14,351 from Rs 14,571 a quintal. The fall in contracts was from Rs 351 to Rs 600 a quintal. The total turnover on NCDEX increased up by 5,049 tonnes to 33,780 tonnes while on NMCE it moved up by 658 tonnes to 3,353 tonnes. The total open interest on NCDEX declined by 855 tonnes to 27,622 tonnes. May position fell by 385 tonnes to 2,023 tonnes while June position fell by 924 tonnes to 17,663 tonnes. July went up by 405 tonnes to 4,300 tonnes.

Rains Likely To Affect Robusta Crop

Chennai: Heavy rains that whipped parts of the coffee-growing areas in Karnataka 10 days ago are likely to hit the robusta crop, while the showers are seen helping arabica crop. The heavy rains could affect up to 25 per cent of the robusta crop in Kodagu district. Nearly 20 inches of rain in some areas has affected the setting in robusta plants. The rains in particular have affected the Napakulu area in Kodagu district. Until the heavy rains came, the coffee plants were reported to have gained from pre-monsoon showers. Coffee-growing areas got good pre-monsoon showers early in April and it was considered good for both arabica and robusta. Planters have also been expecting a good crop this time. A major reason for the expectation is good wintering for the crop. They expect the production to be around last year's level if not better.

Pepper Exports Not Picking Up On Poor Demand

Kochi: Overseas demand for black pepper is still down despite the domestic prices quoting the lowest across the world. Local exporters are disappointed by a poor response from the US and the European markets, even as they are ready to ship MG1 grade at $3,850 a tonne for May and June. According to leading exporters, Europe and the US are fully covered for the next couple of months, and importers are waiting for prices to come down further. Another section of the exporters believed that the major importing nations are adopting a strategy of wait-and-watch, as aggressive buying may bring in sharp increase in prices. Most of the countries are having a good stock of pepper, and hence there is no urgency to buy. But India is losing an obvious chance as there is every possibility that Vietnam may reduce the tags sharply since they have to clear the stocks soon. Although Vietnam slashed the prices by $100, their quotations are still the highest in the world at $4,235 for ASTA, $3,870 for 550 GL and $3,650 for 500 GL. Export demand is rather very weak in Vietnam because of higher prices, but exporters there are reluctant to reduce the tags considerably for the time being. Indonesia is active on the export front and is offering pepper at $3,975 till September. Indian exporters are not even quoting prices for June delivery because of high order of volatility in futures trading. Importing nations, especially Europe and the US are expecting further lower prices during July-September. Brazil, where the prices are relatively low ($3,700 for B1 and $3,900 for BASTA), is not aggressive in the export market because of lower stock position.

Rubber Witnesses Firm Trend

Kottayam: Spot rubber showed a steady trend on May 15. Sheet rubber managed to settle at Rs 85.25 and Rs 85.50 respectively at Kottayam and Kochi against Rs 85 a kg but the trading volumes were low in most of the grades. The rubber futures increased though the overseas markets were not promising. The May contract expired firm at Rs 85.55 (85.02) a kg on NMCE, while the June contract was quoted better at Rs 87.95 (87.29), July at Rs 90 (89.44) and August at Rs 90.50 (89.22) per kg for RSS 4. The open interest was 6,202 (7,424) tonnes with 3,866 (3,812) tonnes in June, 1,815 (1,795) tonnes in July and 521 (507) tonnes in August. The volumes were 1,300 (1,260) tonnes. The June contract was traded at Rs 87.93 against Rs 87.53 a kg on MCX. RSS 3 declined by 73 paise to Rs 94.62 a kg at Bangkok. The June futures for the grade was almost steady at 273.4 Yen (Rs 92.88) against 273.5 Yen a kg at TOCOM. Physical prices were (Rs/kg): RSS-4: 85.25 (85); RSS-5: 84.50 (84); ungraded: 83.25 (83); ISNR 20: 84 (83.75) and latex 60 percent: 63.15 (63.15).

Association Asks Govt To Revive Package For Ailing Tea Gardens

Kolkata: Mr Shashank Prashad, the newly elected President of Tea Association of India, in a statement has asked the Union Government to declare a package for relief and rehabilitation for a large number of ailing but not closed tea gardens on the same line the package being finalised for the closed gardens. There were many ailing tea gardens in Dooars & Terai in North Bengal as also in both Brhamaputra and Barak valleys of Assam and the unprecedented crisis in the tea sector over the past seven years has delivered many gardens financially unviable. The relief and rehabilitation package for ailing gardens, should comprise restructuring of bank loans, a subsidy on interest rates, waiver of penal interest and fines on Provident Fund arrears and a special financial facility at concessional rate of interest. The package could only be an interim measure providing some breather to the distressed gardens.

Natural Rubber Imports To Rise 67-Pc

Mumbai: India is likely to import 67 per cent more natural rubber this year as demand for the raw material climbs on sustained economic growth, an industry group forecasts. The country is likely to purchase a net 75,000 tonnes from overseas, compared with 45,000 tonnes last year, the source said. The gain may come even as India's natural-rubber output rises as much as 5 per cent to 875,000 tonnes this year. The economy in India, the world's fifth-largest rubber user, has expanded at an average 8.6 per cent since 2003, boosting demand for tires and gloves. Thailand, Indonesia and Malaysia are the three biggest rubber producers, while India is fourth. Natural-rubber futures on the Tokyo Commodity Exchange, the global benchmark, have advanced 94 per cent in the past two years on rising demand from China and India. The contract for October delivery, the most active, gained 1.4 yen, or 0.5 per cent, to 274.2 yen ($2.28) a kg at 9:40am Tokyo time today. Global demand for rubber, and the challenges of boosting supply are the principal topics that will be addressed today and tomorrow at the World Rubber Summit 2007 in Bangkok.

Coonoor Tea Price Increases

Coonoor: Prices increased on the average a rupee a kg at sale No: 19 held by Coonoor Tea Trade Association (CTTA) here on May 11, with the demand matching to absorb the low volume on offer. Only 6.47 lakh kgs were on offer. But purchasers showed interest to pick up only those lines, which showed an improvement in quality. In all, some 20 per cent of the offer went unsold. On the export front, Pakistan continued to show interest for the well made brokens at Rs 42 to 43 a kg. CIS shippers picked up bolder varieties for around Rs 44 to 45. Among the corporate buyers, Hindustan Lever Ltd (HLL) showed interest for the good medium sorts.

Lower Global Soyabean Crop Estimate

Mumbai: World production of major oilseed is projected at 399 million tonnes (mt) for 2007-08, down 3.8 mt from 2006-07. If realised, it will be the first year-to-year fell in global major oilseed production since 1995-96, US Department of Agriculture (USDA) said in its latest world agricultural supply and demand estimate for next season. Soyabean production in the US, world's largest producer, will be down sharply due to smaller planted area (shifted to corn). Rapidly expanding production of bio-diesel from Soyabean oil is contributing to a projected 6 per cent increase in domestic soya oil disappearance.
Bio-diesel production is projected to use 19 per cent of total soya oil output for 2007-08 as compared with 13 per cent in 2006-07. The US season-average Soyabean price for 200708 is projected at $6.50 to $7.50 per bushel, compared with $6.30 per bushel in 2006/07. US prices are hoped to remain firm due to relatively strong corn and soyabean oil prices. Soyabean meal prices are forecast at $185 to $215 per short tonne, compared with $195 per tonne for 2006/07.

Coir Product Exports Exceed Target

Kochi: Export of coir and coir products has reached a record Rs 605.17 crore during the last fiscal. The total shipments also recorded an all-time high level of 1,68,755 tonnes as against 1,36,026 tonnes valued at Rs 508.44 crore in the previous fiscal. The export during the year had exceeded the target of Rs 572 crore ($130 million). The Ministry during the current financial year has set a target of Rs 665 crore ($165 million) from coir exports. The US is the single largest market with a share of more than 37 per cent of the total exports. European countries together share more than 41 per cent of the exports. Export of rubberised coir item increased from 537 tonnes to 947 tonnes in quantity and in terms of value increased from Rs 377.05 lakh to Rs 697.86 lakh compared with the same period of the previous year.
The export of Tufted Mat increased from 19,671 tonnes to 29,017 tonnes in quantity and in terms of value it increased from Rs 11606 lakh to Rs 18,213 lakh compared with the corresponding period of the previous year. Domestic sale of coir products was low and the Board was making efforts to increase the sales by selling through 10,000 franchisee outlets in the country. The Board also proposes to conduct India International Coir Fair 2007 in December and the Commerce Ministry has already sanctioned Rs 1.25 crore for the conduct of the fair.

Wheat Prices May Shoot Up On Likely SC Stay

Ahmedabad: If the Supreme Court directs the Centre not to go ahead with wheat imports, then prices of the agri commodity may go up by 10-15 per cent in spot markets, according to a public interest litigation filed by activist Vandana Shiva. A three member bench constituting Chief Justice KG Balakrishnan, Justice DK Jain and Justice RV Ravindran will hear the petition on May 17. Shiva questioned the government's motive in importing inferior quality wheat at Rs 1,600 a quintal, when a better quality was available in the domestic market in the range of Rs 800-1,000 a quintal. Interestingly, Shiva also mentioned in her PIL that the 2006-07 rabi production of wheat stood at 7.36 crore tonnes against 7.3 crore tonnes in 2005-06 - more than the country's total requirement of wheat. Biren Vakil, an Ahmedabad-based expert on commodities, said the apex court will have to clear its stand on what will happen to the imported wheat awaiting approvals.

India To Import 5 Mt Wheat To Increase Reserves

India, the world's second-biggest wheat producer, is likely to import as much as 5 million metric tonnes of the grain this year to boost reserves, Agriculture Minister Sharad Pawar said. Global wheat prices rose to a 10-year high in October partly because India resumed imports in February 2006 after six years to meet a production shortfall. Prices are up 29 per cent in the past year. The country bought 6.5 million tonnes of wheat overseas last year. Wheat futures for July delivery rose 11.5 cents, or 2.4 per cent, to $4.93 a bushel yesterday on the Chicago Board of Trade. The central government, the single biggest buyer of food crops in the country, purchases cereals such as rice and wheat at guaranteed prices from farmers and sells them to the poor at subsidised rates through a chain of fair-price shops across the country. The assured prices are meant to protect farmers from distress sales in the open market. The government has bought 9.2 million tonnes of wheat from farmers so far this year and it had a stockpile of 4.56 million tonnes on April 1. The government's annual requirement of wheat is 12 million tonnes. The government plans to buy 15.15 million tonnes from this year's crop, up from 9.23 million tonnes last year, junior food minister Akhilesh Prasad Singh said March 2. Harvesting began in March. The government has guaranteed farmers Rs 850 per 100 kilograms, less than the prevailing market price. Wheat output may cross 73.7 million metric tonnes estimated by the government last month, Pawar told reporters. India produced 69.35 million tonnes last year. Indian wheat demand may reach 75.5 million tonnes as record economic growth boosts consumption of breakfast cereals, noodles, biscuits and cakes, according to a Bloomberg survey last month.

Tea Price Declines At Kolkata, Guwahati Auctions

Kolkata: CTC leaf and dust teas at Guwahati and Kolkata auctions were in good demand with prices following a fall in quality. At the Siliguri auction on May 10, there was a change in market trends with improved demand, and as a result, the prices were firm to dearer. Darjeeling teas met with good demand, but prices were lower following quality. Orthodox teas were also in good demand with the prices of all the clean and better categories ruling firm to dearer except the larger brokens that sold at irregular levels. The Tea Board recently released the crop figures for March displaying a fall in output by an estimated 7.4 mkg. However, the exports in March recorded a healthy increase of 5.5 mkg over the corresponding month in the previous year.

Approval For Closed Tea Gardens Financial Package Soon

Kolkata: The financial package prepared by the Commerce Ministry for the rehabilitation of the country's 33 closed tea gardens is now before the Planning Commission and the Finance Ministry for consideration. Kerala has 17 of these gardens, West Bengal 14 and Assam two. The package, as the Minister explained, would provide for rescheduling of bank loans, infusion of fresh term loans at subsidised rate of interest and sanction of working capital, waiver of all dues to the Tea Board and waiver of penalties for non-payment of various statutory dues. The package would impose a financial burden of Rs 58 crore on the Union Government and another Rs 80 crore on banks.

Pepper Witnesses Declining Trend

Kochi: Pepper futures market remained to fall on May11, on reports of fall in Vietnam pepper rates. The fall in Vietnam prices is said to be for FAQ 500 GL and not for Asta grade. Indian prices for Asta grade were $3,875-3,900 a tonne (c&f) for Europe and $3,975 a tonne (c&f) for the US.Some processors are unable to process the goods because of the cloudy weather. May contract on NCDEX dipped by Rs 90 a quintal to Rs 14,733. The decline in other contracts was from Rs 31 to Rs 192 a quintal. On NMCE, May contract declined by Rs 13 to Rs 14,400.
The total turnover on NCDEX dropped by 5,914 tonnes to 20,354 tonnes, while on NMCE it dipped by 569 tonnes to 2,718 tonnes. The total open interest on NCDEX fell by 546 tonnes to 29,617 tonnes. May, June, July positions also fell by 466 tonnes, 203 tonnes and 23 tonnes respectively to 3,940 tonnes, 18,578 tonnes and 3,624 tonnes. On NMCE total open interest moved up by 90 tonnes to 5,006 tonnes. Spot prices, also in tandem with the futures market trend, dipped by Rs 100 a quintal to close at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1).

Coonoor Faces Lower Tea Volume

Coonoor: The declining trend in the arrival of crop for the auctions of the Coonoor Tea Trade Association (CTTA) maintains this week with the catalogue showing low listings. In all, only 6.47 lakh kg have been catalogued for the sale to take place on May 10 and May 11. In the corresponding sale of last year, a higher volume of 11.33 lakh kg had been offered. Of the 6.47 lakh kg on offer, as much as 4.49 lakh kg belong to the leaf category and only 1.98 lakh kg is dust category. Again, as much as 5.69 lakh kg belong to the CTC variety and only 0.78 lakh kg, orthodox variety. In the leaf, only 0.32 lakh kg belong to orthodox, while 4.17 lakh kg is CTC. In the dust category, only 0.46 lakh kg belong to orthodox while 1.52 lakh kg is CTC. The low volume can bring about a rise in price if the demand increases proportionately.

Rubber Witnesses Mixed Trend

Kottayam: Spot rubber prices showed a mixed trend on May 10. The market activities were sluggish as major international markets were in a bearish mood. Sheet rubber closed marginally higher by 25 paise at Rs 84.25 a kg at Kottayam on scattered transactions, while the grade continued to rule flat at Rs 84.50 a kg at Kochi. The May contract for RSS 4 was quoted at Rs 84.49 (84.73), June at Rs 87.05 (86.98), July at Rs 88.89 (88.68) and August at Rs 89.50 (89.32), while the June contract completed at Rs 86.65 (86.57) per kg on MCX. The volumes on NMCE totalled 1,332 (1,618) tonnes. The open interest was 10,055 (10,009) lots with 4,194 (4,263) lots in May, 3,680 (3,565) lots in June, 1,713 (1,707) lots in July and 468 (474) lots in August. The June futures for RSS 3 declined to 273.8 yen (Rs 93.41) from 276.9 yen a kg at TOCOM.

Soyameal Continues To Dominate Export Basket

Mumbai: For oil meal exports, the new fiscal has started well with shipment of 4.33 lakh tonnes. This comes after meal exports reports a record 51.7 lakh tonnes during fiscal 2006-07. Soyameal continues to dominate the export basket with shipment of 2.51 lakh tonnes last month, while rapeseed extraction exports reached 1.08 lakh tonnes. Other extractions exported comprised ricebran (33,200 tonnes), groundnut (4,600 tonnes) and castorseed (36,100 tonnes). About 2.61 lakh tonnes or over 60 per cent of the meals was shipped out of Kandla port, followed by Mumbai (55,450 tonnes), Bedi (52,700 tonnes) and Kakinada (38,225 tonnes). Major destinations were China (1.01 lakh tonnes), Vietnam (1.02 lakh tonnes) and South Korea (86,000 tonnes).

Rubber Witnesses Down Trend

Kottayam: Physical rubber prices declined further on May 9. The overall market behaviour in international and domestic futures makes us nervous. Sheet rubber declined to Rs 84 and Rs 84.50 from Rs 84.75 and Rs 85.25 a kg respectively at Kottayam and Kochi. On NMCE, the rubber futures turned green quoting the May contract at Rs 84.55 (83.98), June at Rs 86.95 (85.93), July at Rs 88.70 (87.85) and August at Rs 89.49 (89.16) per kg for RSS 4. The open interest was 10,009 (10,779) tonnes with 4,263 (4,981) tonnes in May, 3,565 (3,666) tonnes in June, 1,707 (1,664) tonnes in July and 474 (468) tonnes in August. RSS 4 dropped to Rs 86.35 from Rs 86.70 a kg at its June contract on MCX. The June futures for RSS 3 weakened to 276.9 Yen (Rs 94.48) from 280.5 Yen a kg at TOCOM. The grade (spot) improved to Rs 95.50 from Rs 94.84 a kg at Bangkok. Spot rubber prices were (Rs/kg): RSS-4: 84 (84.75); RSS-5: 83 (83.50); Ungraded: 82 (82); ISNR 20: 83.25 (83.25) and Latex 60 per cent: 62.10 (63.15).

World Cotton Output Likely To Decline

Mumbai: A slight dip in global cotton production, a 2 per cent increase in World consumption, lower ending stocks and a large increase in China's imports are likely to be the defining features of the 2007-08 cotton season. A strong upside risk to prices is indicated. The Cotlook A-Index is forecast to increase to season-average of 62 cents a pound next year, up from current year (9-month) average of 58 cents, according to the International Cotton Advisory Committee (ICAC). China's imports are projected to rise by one million tonnes (mt) to 3.9 mt in 2007-08, which could drive international trade by 9 per cent to 9.1 mt, the Washington-based agency said recently.
For 2007-08, world production is forecast at 25.1 mt (25.3 mt), while consumption is set to increase to 26.7 mt (26.1 mt). The global developments in terms of demand-supply fundamentals and prices are sure to benefit India. There is hope, subject of course to normal monsoon, that the country would produce 260-270 lakh bales of cotton (or even more) and leave 40-50 lakh bales as export surplus. Market arrivals for the 2006-07 season have reached around 253 lakh bales as at end-April, while export shipments are estimated at 40-41 lakh bales. Already 2 lakh bales have arrived, mostly from Egypt and the US. Over the next four months, southwest monsoon will play a critical role in shaping kharif crops including cotton.

Sugarcane Breeding Institute Releases New Variety

Chennai: The Sugarcane Breeding Institute in Coimbatore has introduced an improved sugarcane variety named. Named Co 99004 (Damodar) the variety is suitable for cultivation in Kerala, Tamil Nadu, Karnataka, Maharashtra and Gujarat. This variety combines both high yield and high quality and could replace the existing popular variety Co 86032. The variety was tested in 34 trials across 12 locations comprising of both plant and ratoon trials and recorded a mean sugar yield of 16.09 tonnes per hectare compared to 15 tonnes per hectare of Co 86032.

Pepper Futures Witnesses Down Trend

Kochi: Pepper futures saw a down on May 7, on reports of decline in Vietnam prices and bull liquidation. However, Vietnam was reportedly offering 500 GL at $3,850 a tonne (f.o.b) and 550 GL at $4,000 a tonne (f.o.b), while V Asta was $4,050 a tonne (f.o.b). Indian parity was at $4,050 a tonne (c&f). Indian prices are at competitive level and hence there is a possibility of business coming to here. Indonesian crop is said to arrive only in August. Lampung Asta is reportedly quoted at $4,500 a tonne (fob). Many bull operators were liquidating on May as was evident from the drop of 915 tonnes in the open interest for this month, which was not reflected anywhere. The difference in price between May and June was around Rs 6 per kg, while between May and July it was around Rs 12 a kg. The decline in other contracts was from Rs 74 to Rs 172 a quintal. Spot prices were also in tandem with the futures market. Prices declined by Rs 100 a quintal to close on May 7, at Rs 14,200 (un-garbled) and Rs 14,800 (MG 1). On NMCE, May contract dropped by Rs 209 to close at Rs 14,500 a quintal from Rs 14,709 at weekend close. The decline in other contracts was from Rs 54 to Rs 534 a quintal. The total turnover on the NCDEX soared by 21,863 tonnes to 47,417 tonnes on May 7, while on the NMCE it increased by 1,695 tonnes to 4,310 tonnes. The total open interest on the NCDEX fell by 970 tonnes to 29,877 tonnes. On NMCE, the total open interest increased by 189 tonnes to 4,242 tonnes. May position declined by 41 tonnes to 1,840 tonnes, while June increased by 241 tonnes to 1,931 tonnes.

Pepper Exports Increase 56 Pc In 2006

Kochi: Exports of pepper from the country displayed a significant leap in 2006 to 24,673 tonnes valued at Rs 242.8 crore against 15,800 tonnes in 2005, recording an increase of 56 per cent in volume and 84 per cent in value. Total shipments during the first two months of 2007 were increased by almost 80 per cent to 5,426 tonnes valued at Rs 61.5 crore with 143 per cent increase in export value compared with the corresponding period of last year. According to IPC, Vietnam maintained to be driving the market. Farmers in Vietnam maintained to hold raw materials and only released them when prices met their expectations. F.o.b prices were $3,400 per tonne and $3,605 per tonne for black 500 GL and 550 GL, respectively.
Meanwhile, the average f.o.b. price at Kochi eased down by 3 per cent (unknown reason). In Lampung, local rates gained further albeit with limited activity. In Sarawak, price also gained by 6 per cent. In Sri Lanka, prices at growing areas moved up by 5 per cent. The local price of white pepper also shot up higher. In Sarawak, prices were up by 6 per cent.

Govt Urges Organised Tea Sector Must Live With Small Growers

Kolkata: The West Bengal Minister for Commerce & Industry, Mr Nirupam Sen, has made it clear that the State's organised tea sector must learn to live with the small growers and bought leaf factories (BLFs). There is tremendous pressure on the State Government to allow establishment of more BLFs not only in Jalpaiguri and Darjeeling districts where a number of such factories already exist but also in North Dinjapore and Cooch Behar where there are several small tea growing units but hardly any BLF.
The committee saw merit in the organised tea sector's stand against the small growers and suggested a halt to new BLFs and small tea growing gardens in the State. The small growers, the organised sector had complained, neither provided jobs throughout the year nor cared for maintaining quality. They also paid scant attention to workers welfare and barely complied with statutory liabilities. The owners of some of better run gardens have shown interest in taking over, some of the closed gardens and running them and the State's chief secretary has held meeting in this regard as some legal hurdles have to be overcome. Tea tourism is another option being explored. The State Government is ready to share some of its social responsibilities such as running schools, health centres and constructing roads in the garden areas and accordingly have sounded some of the garden owners for providing lands. The money to be give under the centrally sponsored Special Purpose Tea Fund would be used exactly for the purpose for which it was meant.

Jute Cultivation Likely To Be Lower This Year

Kolkata: If the demand for seeds is any indication, the acreage under jute cultivation this year is lower than last year. Consequently, the yield of the crop for the jute year July 2007-June 2008 is hoped to be lower as well. On account of an estimated carry forward stock of 27-28 lakh bales, the industry is not hoped to face any shortage of its raw material. According to sources in the Jute Balers' Association, the ensuing jute year (July-June) will start with a carry forward stock of around 27-28 lakh bales, including raw jute lying in mills' godowns, with Jute Corporation of India (JCI) and upcountry markets. It may be mentioned that the 63-day, industry-wide jute mills strike in West Bengal that ended earlier in March this year resulted in lower consumption by jute mills during the current jute year to the extent of 16 lakh bales.
Rraw jute consumption by the mill sector during a normal working year stands at about eight lakh bales per month aggregating to 96 lakh bales for the full year. The sources said sowing has already commenced in jute-growing areas. In Assam and North Bengal, sowing is almost over even as it continuous in semi-northern and South Bengal and Bihar. The Union Government has already declared the minimum support price (MSP) at Rs 1,055 per quintal for TD 5 Grade jute ex-Assam.

Govt Looks At E-Auction Of Cardamom

New Delhi: Following the successful e-auction of tea at a limited level, the Department of Commerce is keen on extending e-auction to another important plantation crop, cardamom. A guideline for implementing e-auction of cardamom has been launched with the requisite development of software for electronic auction having been put in place by TCS, currently under testing. Implementation at the Auction Centre, Cardamom Planter's Association, Bodinayikanur, which is the pilot centre, will be done this month. Also, detailed testing on aim hardware at the board's headquarters with sufficient number of bidder terminals and trial run before planters, auctioneers and bidders would also be done.
The system would help plug collusive behaviour in price fixation, besides broad-basing the system itself to the growers' advantage. In Coonoor, there is 100 per cent live auction (both leaf and dust), while other centres in the South conduct 100 per cent live auction on leaf only. In Siliguri there is 25 per cent of leaf, while there is no e-auction of tea in Kolkata. Implementation of e-auction of tea on a limited scale has convinced the Tea Board that some changes will be needed in the extant system; suggestions have been received to separate the tea portal and e-auction, even while retaining the features of the portal.

Cardamom Prices Increase On Thin Supply

Kochi: Cardamom prices increased on thin arrivals during the week at auctions held in Kerala and Tamil Nadu. The total arrivals from April 27-May 2 stood at 93 tonnes only. Arrivals during the season up to May 2 were at 7,511 tonnes compared with 8,635 tonnes during the same period last season. 8 mm bold good colour capsules fetched the maximum price of Rs 516 a kg. The 7.5 mm and 7 mm fetched Rs 425-Rs 450 and Rs 400-Rs 420 a kg respectively. Current bulk was sold at Rs 370-Rs 380 a kg. Prices of graded varieties were AGEB Rs 445-Rs 455, AGB Rs 380-Rs 390, AGS Rs 360-Rs 375, AGS 1 Rs 330-Rs 340 and current bulk Rs 330-Rs 385 a kg.

Centre Releases 13Lt Sugar For Open Market Sale

Chennai: The Union Government has released 13 lakh tonnes (lt) of sugar this month for sale in the open market against 12 lt last month. The Centre has allotted one lt more this month with Maharashtra and Uttar Pradesh mills getting the lion's share in the additional quantity released for sale. The Centre fixes the quantity that can be sold in the open market by individual mills in various States under the free sale quota. While Maharashtra had been allotted 40,000 tonnes under the additional one-lt quota, Uttar Pradesh has been allotted 45,000 tonnes.

Pepper Futures Improve

Kochi: Pepper futures increased on May 2, on tight supply position in Vietnam and consequent sharp rise in prices there. Vietnam was offering FAQ 500 GL at $3,900 (f.o.b.) while 550 GL at $4,000 and 570 GL at $4,350 a tonne (f.o.b.). In tandem with this trend Indonesia was quoting Lampung Asta at $4,135 a tonne (c&f). Meanwhile, Vietnam exporters are said to have defaulted March/April shipments saying that the material was not available. Overseas purchasers are upset now after waiting for long for the prices to decline and using their pipeline stock, which is also said to have exhausted. White pepper rates have also increased in the international market. China was offering at $5,150 a tonne (c&f), while Indonesia at $4,950 - $5,000 a tonne (c&f).
May contract on NCDEX increased by Rs 671 a quintal to close on Wednesday at Rs 15,940 from Rs 15,269 on April 1. On NMCE, May contract increased by Rs 708 a quintal to close at Rs 15,420 from Rs 14,712. Spot prices also shot up by Rs 500 a quintal on April 2, to close at Rs 14,500 (un-garbled) and Rs 15,100 (MG 1). The total turnover on NCDEX increased by 21,528 tonnes to 54,846 tonnes while on NMCE, it moved up by 1,239 tonnes to 4,591 tonnes. The total open interest on NCDEX shot up by 200 tonnes to 29,109 tonnes. May position declined by 1,023 tonnes to 8,020 tonnes. June and July positions have increased by 743 tonnes and 320 tonnes respectively to 14,308 tonnes and 3,104 tonnes.

Inking Of SPTF Ageement By June

Kolkata: The formal inking of the first round of loan pact under the Special Purpose Tea Fund (SPTF) is hoped to be done latest by June 27. It might be noted that Legal documents such as loan agreement and mortgage deed have been prepared in consultation with the Tea Board's solicitors. Also, the terms and conditions for the retainership of the advisers to SPTF, namely, SBI Capital Markets and Pegasus A sum of Rs 30 crore, got from the Union Government as initial contribution, has been kept as fixed deposit with State Bank of India. Meanwhile, a directive has been issued under the Tea Market Control Order to all registered brokers to issue their consent letters to the borrowers for deduction of the loan dues at the point of sale via auctions. A meeting of the Apex Monitoring Committee is to be held shortly for considering some important policy issues relating to SPTF. The manual is available for sale to the tea gardens.

Natural Vanilla Extract Unveiled

Kottayam: Natural vanilla extract manufactured using the cold process technology under the brand name Nature's Nurture has been unveiled at Kottayam. The company has technical collaboration with a US-based vanilla extraction company under which home products could be exported to the US. Natural vanilla extract produced with this technology gives both fragrance and the taste of natural vanilla whereas the vanilla extract produced through carbon dioxide extraction gives only the smell. This technology is introduced for the first time in India.

TN Sugar Mills Looking For Help From State Govt

Chennai: Sugar mills in Tamil Nadu are pushing for help from the State Government on sugarcane price and sugar exports. According to the South Indian Sugar Mills Association representatives, the mills here are at a disadvantage as compared to their counterparts in other States, where the Governments have declared support (or at least expressed intention to support) sugar exports or sugarcane payments to farmers. The sugar mills here pay the highest in purchase tax on sugarcane (Rs 60 a tonne); movement of molasses is controlled leading to an artificial glut and crash in prices. Andhra Pradesh has declared a late crushing subsidy of Rs 100 a tonne of sugarcane to mills to compensate for the sugar recovery loss when they crush sugarcane late into the summer.
Karnataka too has declared a similar support apart from abolishing purchase tax on sugarcane. Industry representatives said that Maharashtra has declared a transport subsidy on sugarcane of Rs 2 per km per tonne for moving cane beyond 15 km, a late crushing subsidy and an export subsidy of Rs 1,000 a tonne of sugar. The State Government should come out with a declaration on sugarcane pricing support along the lines of that announced by the others. Purchase tax in Tamil Nadu is the highest in the industry. The State Government has also not facilitated unveil of the ethanol-blended petrol programme, which would mean additional revenue for the mills. At 5 per cent blending the oil companies would need about 5.8 crore litres ethanol a year for which the price has been fixed at Rs 21.50 a litre. Since the State Government does not allow export or movement of molasses out of Tamil Nadu, the glut has resulted in prices hitting the bottom.

TNAU Targets At Higher Rice Yield

Coimbatore: The Tamilnadu Agricultural University (TNAU) has urged its researchers working on yield increase in rice to aim 12 tonnes productivity per hectare. Dr C. Ramasamy, Vice-Chancellor, while reviewing the rice research programme recently, also advised that scientists formulate new pheromones for improved pest controls. A new rice culture developed by the University that can yield 3.7 tonnes per hectare could be adopted in rain-fed areas of Ramanathapuram and Sivaganga.