Biggest Rubber Wood Factory To Be Set Up In Tripura - July 31, 2008

AGARTALA : Country's second biggest rubber wood factory to be set up in Tripura with technological support from China, Germany and Taiwan, would help in boosting rubber wood based products, officials said.

The factory, set up in west Tripura’s Anandanagar area would help in producing solid wood boards from treated rubber wood using advanced international technology, said Jitendra Chowdhury, Tripura forest and industry minister.

The country’s biggest rubber wood factory is in Kerala, India’s largest natural rubber producing and cultivating state.

China, Germany and Taiwan have provided rubber wood processing technologies, besides machineries. Tripura is the second largest rubber producer in the country after Kerala with 41,000 hectares of land so far brought under rubber cultivation and the northeastern state is now producing 23,000 tones rubber latex per year.

Tripura Forest Development and Plantation Corporation (TFDPC), a state-run agency, has commissioned the factory at a cost of Rs 6.5 crore. “A Hong Kong based organisation is expected to be assigned for international marketing tie-up for the products,” the minister said after formally launching the production of the factory on Tuesday.

He said: “Talks are on for domestic marketing of the products with Chennai, Mylapore, Mumbai, and Gujarat-based companies.”

To boost the industry, India’s second rubber-based industrial park is being set up in Tripura. The rubber park, a joint venture between the Tripura Industrial Development Corporation (TIDC) and the Rubber Board, is the second of its kind in the country after the rubber park at Irapuram in Kerala, where over 520,000 hectares are now under cultivation.

Infrastructure Leasing and Financial Services (ILFS) is the project management agency of the park, where at least 20 rubber-based industrial projects would be set up within the next three years.

“The rubber park is to be built in an area of 50 acres of land in the Bodhjunjnagar industrial growth centre in western Tripura and over Rs 50 crore are expected to be invested in the park over a period of three years,” said Pabitra Kar, chairman of the TIDC.

Oilseed Futures Are Opening Up On Thursday - July 31, 2008

MUMBAI: Oilseed futures are seen opening up on Thursday, tracking firm global markets, analysts said. US soy futures closed higher on Wednesday on late short-covering, led up by a rally in corn and crude oil, traders said.

However, revival of monsoon after a lull may accelerate sowing operations, improving prospects for oilseed crop and depressing prices.

Soybean August futures on the National Commodity and Derivatives Exchange ended 1.30 percent up at 2,604.5 rupees per 100 kg on Wednesday. Rapeseed September contract on NCDEX ended up 1.45 percent at 631.80 rupees per 20 kg on Wednesday.

At 9:25 a.m., the benchmark October contract on the Bursa Malaysia Derivatives Exchange was up 1.77 percent at 3,045 ringgit a tonne.

Sugar Futures May Ease In Morning Trade On Thursday - July 31 , 2008

MUMBAI: Sugar futures may ease in morning trade on Thursday on hopes of higher supplies in the spot market ahead of an anticipated festival demand from August, analysts said.

The sugar September futures ended up 0.76 percent at 1,722 rupees per 100 kg on the National Commodity and Derivatives Exchange on Wednesday. But government allowing exports to the US from the 2007/08 free sale quota and strong spot demand may limit the losses, they added.

Mentha Oil Futures On Wednesday - July 30 , 2008

NEW DELHI: Mentha oil futures on Wednesday rose 2.28 per cent in early trade on Wednesday on the domestic futures market on the back of fresh buying by traders after hitting the lower circuit on Tuesday.

Traders said emergence of buying on supply concerns helped mentha oil to recover part of Tuesday's losses.

All four running contracts - July, August, September and October - were back in positive territory with a gain of 2.28 per cent on the Multi Commodity Exchange.

Mentha for delivery in August contract rose the most with a gain of 2.28 per cent at Rs 709.40 per kg after rising to Rs 710 at 1030 hrs.

While, near-month July contract was trading 2.10 per cent higher at Rs 694 per kg after moving between Rs 698.80 and Rs 685 per kg at the outset.

Far-month September and October contracts were up by 1.95 and 1.99 per cent at Rs 717 and Rs 728 per kg respectively.

Turmeric Prices Stay Low As Rains Push Up Output - July 30 , 2008

MUMBAI : Turmeric extended losses for a third session on Tuesday on subdued demand in the spot market and rainfall in the main producing belt, which would accelerate delayed cultivation, analysts said.

“Rainfall has been putting pressure on prices. Rainfall has increased moisture level and cultivation has been progressing well in Maharashtra and Andhra Pradesh,” said Vandana Bharti, a senior analyst at SMC Comtrade.

Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu, the major producing states, have been receiving rains for last four days. Demand was sluggish from domestic and oversees buyers and that pulled down spot prices, said an analyst at Agriwatch.

In Nizamabad, a key spot market in Andhra Pradesh, the price fell Rs 10 to Rs 4,585 per 100 kg. A likely drop in acreage in 2008-09 due to scanty rains in main cultivating regions during the vital cultivation period capped the downside, said an analyst at Delhi-based commodity brokerage.

The main producing states received lower rains from June 1 to July 23 compared to the long-term average, weather department data showed. Recent showers were also helping the planted crops, said a trader based in Nizamabad.

Traders estimate reduced acreage and unseasonal rains in March to cut output in 2007-08 to 4.2 mn bags of 70 kg each from 5.4 mn bags a year ago. Meanwhile, chilli for August delivery trimmed early gains to end lower on

Tuesday tailing a weak spot market where exporters slowed down buying due to rainfall, analysts said.

Recent showers over Andhra Pradesh, the biggest producer, erased fears of lower output due to scanty rains during mid-June to mid-July, said an analyst at a Mumbai-based commodity brokerage. In Guntur, a key spot market in Andhra Pradesh, price was down Rs 41 at Rs 5,111 per 100 kg.

Exporters were buying slowly due to rainfall, which makes handling of the spice difficult, traders said. However, an expected rise in export demand pushed up October futures contract. Chilli exports in the first three months of FY09 rose 16.3% to 67,000 tonnes, the Spices Board said on Friday.

Rubber Sees Steady Trend - July 30 , 2008

Kottayam: The rubber prices ruled firm on July 29. The undercurrent remained to be steady on short supply followed by intensified rains all over the plantation areas. RSS 4 closed unaltered at Rs 137 a kg. The grade's spot fell to Rs 133.76 (Rs 133.83) a kg at Bangkok. Spot prices (Rs/kg) were: RSS-4: 137 (137); RSS-5 : 135 (135); ungraded: 131.50 (131.50); ISNR 20 : 134 (134); and latex 60%: 90 ( 90).

Govt Must To Curb Cotton Exports - July 29 , 2008

New Delhi: After having made registration mandatory for all cotton shipments, the Union Government is now conceiving quantitative limits on its exports. There is a proposal now to fix a quantitative ceiling of 80 lakh bales on exports of raw cotton for the current cotton year ending September 30. The proposal was apparently talked at a recent meeting of the Committee of Secretaries and it has been sent to the Agriculture Ministry for further comments.

The Agriculture Ministry is hoped to come out with its views before the Commerce Ministry can proceed further on the move. On July 24, the Government made it mandatory for all cotton exports to be registered with the Textile Commissioner before their shipment. In its notification, the Directorate General of Foreign Trade (DGFT) also said cotton consignments should be approved by Customs authorities only after checking that the contracts had been registered.

These restrictions have come within 20 days after the Government scrapped the 14 per cent import duty on raw cotton and withdrew 1 per cent export incentive to boost domestic supplies and soften domestic prices. Though the Cotton Advisory Board approximated exports at 65 lakh bales this season, the textile industry sees shipments around 100 lakh bales.

World, Indian Sugar Rates Set To Soar - July 29 , 2008

Mumbai: After a lukewarm performance last two years, the global sugar market is showing promising signs of rebound in prices. India is likely to play a key role in lending strength to global prices. Deteriorating prospects for sugar crops in two of the world's largest producers Brazil and India, combined with the world's largest importer Russia re-foraying the market have meant that the price weakness will soon become a thing of the past. World sugar market fundamentals are set to stiffen next season. In 2007-08, world sugar consumption estimated at about 160 million tonnes (mt) is set to trail output (171 mt) by over 10 mt which will be available as excess.

Sugar output in Asia represented by India, China and Pakistan is set to be lower than in the previous year. Even in the European Union, following uncertainties relating to reforms, there exist the strong possibility of lower sugar production (from beet). As is axiomatic, in a tightly balanced commodity market, even a small change in either demand or supply or both will have a disproportionately larger impact on market prices. Deviant weather in cane growing States such as Maharashtra, Andhra Pradesh and Karnataka has created risk of yield loss. As result, the preliminary expectation of 2008-09 sugar output is 22-23 mt versus 27 mt of previous year. Indian sugar exports from 2007-08 season have already reached 3.5 mt and may potentially reach 4.0 mt.

Rubber sees upper trend- July 29 , 2008

Kottayam: The rubber market displayed a better trend on July 28. RSS 4 increased to Rs 137 from Rs 136.50 a kg on the previous weekend. Covering groups maintained the prices at higher levels expecting revised quotes from major manufacturers. The grade (spot) moved up to Rs 133.83 (Rs 133.19) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 137 (136.50); RSS-5: 135 (134.50); ungraded: 131.50 (131.50); ISNR 20: 134 (133.50) and latex 60 per cent: 90 (90).

Darmona Tea Reports New Record At Coonoor Auction - July 28 , 2008

Coonoor: Five different verities of Darmona Estate and Tea Industry, auctioned by J. Thomas and Co, shot into the Rs 100 price-band at Sale No: 30 of the auctions of the Coonoor Tea Trade Association (CTTA) here on July 25. Darmona made record in both the leaf and dust market.

Its broken pekoe (BP) grade got Rs 100 a kg, while broken orange pekoe fannings (BOPF) grade got Rs 106. In the dust market, its red dust (RD) grade got Rs 100 a kg, pekoe dust (PD) got Rs 112, the highest in this week's dust market. Homedale Estate's RD grade also got Rs 100 a kg.

Hittakkal Estate got Rs 94, Highfield Estate Special Rs 93, Vigneshwar Estate and Shanthi Supreme got Rs 92 each, Ella Estate and Warwick Estate Rs 89 each, Green View Supreme, Professor, Deepika Supreme and Sree Tea Supreme Rs 88 each, Kannavarai Estate and Aroma Estate Rs 87 each and Selva Ganapathy Supreme Rs 83. Among the orthodox teas from corporate sector, Chamraj got Rs 128, Mailoor Rs 124, Tiger Hill and Havukal Rs 121 each, Coonoor Tea Rs 120, Thaishola Rs 119, Parkside Rs 113, Glendale and Corsley Rs 112 each, Curzon Rs 111, Prammas Rs 110, Colacumby Rs 109, Craigmore Rs 106 and Kairbetta Rs 100.

Kochi Tea Auction Sees Firm Trend - July 26 , 2008

Kochi: Firm trends were apparent in demand and rates at the Kochi Tea auction. CTC dust tea varieties saw a good demand, as blenders, domestic consumers, companies and exporters were active in the market. CTC market was generally up Rs 2-4. Orthodox high grown dust varieties were also dearer while medium orthodox were firm to dearer by Rs 1-2. Best CTC dust varieties quoted Rs 72-82, medium CTC at Rs 66-70 and below medium at Rs 62-65.

High grown BOPD varieties were at Rs 106-116, medium BOPD Rs 59-60 and secondaries were at Rs 53-55. Best Nilgiri varieties fetched Rs 87-112, medium orthodox Rs 66-92 and plain orthodox quoted Rs 57-65. In the dust category, Kodanad BOPD fetched the top price at Rs 116, Parkside BOPD at Rs 106, Pasuparai FD at Rs 100 and Pasuparai SFD at Rs 94.

Serial Blasts Rock Bangalore

A woman was killed and at least six people were injured in a series of six low-intensity blasts carried out in eastern parts of the information technology capital this afternoon.

The woman, who was waiting at a bus shelter in Madivala on the Bangalore-Hosur road, was killed in the blast and her husband and another person were seriously injured, police said.

Bangalore was rocked by a major terrorist attack in December, 2005 when extremists opened fire in the famous Indian Institute of Science complex in which a Delhi IIT professor lost his life.

There were also blasts in other areas like Panthrapalya, Audugodi and Vittal Mallya Road within minutes of each other from the first blast at around 1330 hours.

Police Commissioner Shankar Bidari appealed to the people of the city to maintain calm and carry on with their normal life as police have been put on alert throughout the city.

He said timer device has been used in some of the blasts and explosives in quantity equivalent to one or two hand grenades have been used in some others.

Bidari termed it as an "act of miscreants" trying to disturb peace in Bangalore and appeared pre-planned. "We will get to the criminals and arrest them," he said.

Bomb disposal squads and forensic experts have rushed to the spot for investigations.

Chronology of some recent major bomb blasts in the country:

May 13, 2008: Eight serial blasts rock Jaipur in a span of 12 minutes leaving 65 dead and over 150 injured.

January 2008: Terrorist attack on CRPF camp in Rampur kills eight.

October 2007: 2 killed in a blast inside Ajmer Sharif shrine during Ramadan, in Rajasthan.

August 2007: 30 dead, 60 hurt in Hyderabad 'terror' strike.

May 2007: A bomb at Mecca mosque in Hyderabad kills 11 people.

February 19, 2007: Two bombs explode aboard a train bound from India to Pakistan, burning to death at least 66 passengers, most of them Pakistanis.

September 2006: 30 dead and 100 hurt in twin blasts at a mosque in Malegaon.

July 2006: Seven bombs on Mumbai's trains kill over 200 and injure 700 others.

March 2006: Twin bombings at a train station and a temple in Varanasi kill 20 people.

October 2005: Three bombs placed in busy New Delhi markets a day before Diwali kill 62 people and injure hundreds.

Rubber Sees Steady Trend - July 25 , 2008

Kottayam: The physical rubber prices ended unaltered on July 24. Spot prices were (Rs/kg): RSS-4: 136 (136); RSS-5: 134 (134); ungraded: 130 (130); ISNR 20: 133 (133) and latex 60 per cent: 90 (90).

Pepper Futures Mkt Sees Up Trend - July 25, 2008

Kochi: The pepper futures market on July 24 was volatile and all the contracts ended slightly up. Reports that Vietnam rates are easier created pessimistic sentiments and arrested the upward move. Indian parity ruled at $3,600-3,650 a tonne (c&f) and continued uncompetitive in the world market, even after the rupee weakened against the dollar on July 24.

Indonesia was quoting at $3,500 a tonne (f.o.b.) and its prices are reported to be easier in the coming weeks. Brazil was quoting Astaat $3,100 a tonne (f.o.b.) Belem while 550 GL at $3,000 a tonne (f.o.b.). Vietnam reported to have quoted 550 GL at $2,950-3,000 a tonne (f.o.b.). The turnover on the NCDEX dropped by 2,422 tonne to 12,331 tonne on July 24 while the Net Open Interest declined by 373 tonne to 20,687 tonne. August net open position fell by 490 tonne to 9,261 tonne while others increased slightly.

Spot prices ruled firm at July 23 levels of Rs 13,800 a quintal (un-garbled) and Rs 14,400 a tonne (MG 1) on July 24.

Rise In Rupee Bites MCX Gold Futures - July 24, 2008

Comex Gold futures are trading with marginal gains yesterday’s intense fall allure investors to buy the commodity. However the Indian gold futures on MCX were trading with losses as Rupee rose to as high as 41.82 against the US dollar.

The surge in the global equities and slight moderation in geopolitical tensions over Iran’s nuclear issue is also pressuring the gold prices as its safe haven demand is decreasingThere are flurry of economic data releases from Europe today and this may cause volatility in the Gold futures today. The crucial data includes French, German & Euro Zone manufacturing PMI, German IFO Business Climate & Expectations Index. Data from US includes just the existing home sales data and speech by the FOMC member Geithner.

COMEX Gold futures for August delivery are trading with the gains of $1.7 at $924.5 an ounce. The counter may get a boost in the intraday trades today taking into account yesterday’s massive fall. The day traders may enter short around $930 level with the stop loss around 935 levels and the target of 915.

MCX Gold futures for the benchmark contract are trading down Rs 50 at Rs 12594 per 10 grams. The traders may enter short on spurt in the prices with the profit target of 12475. In other related news, gold production of Newcrest Mining Ltd declined 6% during the fourth quarter to 435,120 troy ounces as compared to the same period last year as a gas outage slashed output at its flagship Telfer mine in Western Australia.

Gold production for the year ended June 30 was a record 1.78 million ounces, as expected when allowing for Telfer's 20,000 to 25,000 ounce shortfall.

Meanwhile, Gold production in India during April to June declined to 2.36 tonnes against 2.52 tonnes during the same period a year earlier according to Ministry of Mines.

Market Speak : Pepper Prices May Face Resistance At Higher Levels - July 24, 2008

Persistent selling in international market coupled with favorable monsoon for domestic crop incited some negative sentiments in domestic market.

Higher prices of domestic market in international market as Indian variety is quoting at $3560-3600 per tonne against the prices of Vietnam quoting at $2800-2850 and Brazil at $3200 per tonne, have kept the chunk of international buyers away from Indian market .

Moreover, fresh arrivals of Indonesian and Brazil crop also maintained the bearish sentiments in international market.

This along with favorable monsoon in pepper growing regions of Kerala such as Wayanad,Kollam and Idduki and also in Coorg of Karnataka also added some bearishness in the market. As per latest IMD reports , sturdy rainfall has been reported from last couple of days while more rain likely in the coming days .This will helpful for the growth of pepper fruits .Normally, pepper’s flowering starts during June-July and the light showers during this period are considered to be beneficial for the fruit-set. This will also helpful for the maturity of pepper berries, which are normally harvested in the month of November to December month.

Therefore , persistent supply situation in both domestic and international market against waning demand situation might keep the pepper prices under check at the higher levels.

NYMEX Oil Marginally Higher; MCX Dips On Rupee - July 24, 2008

Rupee continued to pressurize the Indian commodities. MCX Crude oil August futures are trading down nearly 2% or Rs 96 at Rs 5246 per barrel in the early Asia electronic session. International oil futures are however trading above $124 a barrel. Surge in the gasoline supplies during the peak summer driving season led to this breakdown in the crude oil futures yesterday. Also no news of the storm dolly getting converted into hurricane and no fresh supply concerns from Iran added more pressure on oil.

Yesterday, the U.S. Department of Energy (DOE) said that crude oil supplies were down 1.6 million barrels last week to 295.3 million barrels and 100,000 barrels were added to the Strategic Petroleum Reserve. Supplies of gasoline were up 2.9 million barrels and heating oil supplies were up 1.2 million barrels. September crude oil fell $3.98 to $124.44, the lowest close in six weeks. The DOE also said that refinery use fell from 89.5% to 87.1% of capacity last week. Over the past four weeks, gasoline demand was down 2.4% from a year ago while distillate demand was up 3.6%.

NYMEX Light sweet oil futures for the upfront month contract are trading up 6 cents at $124.51 per barrel. The counter may find good support near the 123 levels and a break of that may take it to 121 levels. Similarly the MCX August oil futures may find very good support near 5170 levels and fall below that may take it to 5095 levels.

The movement in the currencies also hurt the crude oil futures. The Indian Rupee rose to as high as 41.82 against the US dollar exerting pressure on the India oil futures. On the other hand strength in the US dollar against other currencies pressurized the international oil futures, which are denominated in the US dollar.

Commodities Buzz: Chinese Ministry Of Commerce Optimistic About Trades For Remaining Year - July 23, 2008

The Chinese Ministry of Commerce remains optimistic about trade for the rest of the year and will maintain the policies adopted in the beginning of the year despite widespread concerns over the export slowdown, according to the vice-minister of commerce.

The current trade figures are within the government's expectations, and the export slowdown is the result of trade policy adjustments initiated earlier this year, Vice-Minister of Commerce Gao Hucheng said.

The growth rate of exports slowed to 21.9 percent for the first half, compared with the 27.6 percent increase over the same period last year. Exports for June alone went up only by 17.6 percent, much slower than the 28.1 percent rise in May.

Turmeric Down For Third Consecutive Sessions On Profit Taking - July 23, 2008

The NCDEX Turmeric futures extended the last trading sessions loss on continued profit taking. The counter is trading with loss for the third consecutive trading sessions on profit booking of earlier gains, the current fall is a technical correction from the overbought zone.

The Turmeric futures benchmark October contract on NCDEX traded in the ranges of Rs 5050- Rs 4950 per quintal during the opening trading sessions. The counter lost nearly Rs 65 or 1.30% per quintal at the sessions low. The counter currently trades at Rs 4969, down Rs 46 or 0.92% per quintal and the open interest in the contract pared 2.44% which stood at 31,530 lots as against 32,320 lots as on yesterday, indicating profit taking.

Rubber Price Increases - July 23, 2008

Kottayam: The domestic rubber prices increased sharply above the international prices on July 22. Surprisingly the sharp increase of Rs 3 a day appears to be quite unusual as it shows the abnormal scarcity of the commodity in the market. RSS 4 increased to Rs 137 from Rs 134 a kg catalysed by the aggressive purchasing from major consuming sectors. The tyre sector has been active on sheet rubber up to Rs 136 a kg. Spot prices were (Rs/kg): RSS-4: 137 (134); RSS-5: 134 (132); ungraded: 132 (130); ISNR 20: 133 (131) and latex 60 per cent: 90 (89).

Rubber Price Increases - July 22 , 2008

Kottayam: The opening day of the week saw yet another better closing in rubber rates. Even the village markets were suffering from sharp short supply as most of the growers reported sharp decline in output due to fundamental reasons. Sheet rubber RSS 4 increased further to Rs 134 from Rs 133 a kg on the previous weekend. RSS 3 (spot ) closed at Rs 137.09 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 134 (133); RSS-5: 132 (131); ungraded: 130 (129); ISNR 20: 131 (131) and latex 60 per cent: 89 (88.50).

Turmeric Future Touches Lower Circuit - July 22 , 2008

Mumbai: Chilli, pepper and turmeric touched the lower circuit of 2 per cent in NCDEX on July 21. Chilli declined by 2.91 pr cent to Rs 5,665 a quintal on long liquidation coupled with firm spot market due to lack of export demand. Profit taking cut down pepper by 2.68 per cent to Rs 14,705 a quintal. Turmeric drop 2.13 per cent to Rs 4,875 a quintal on incessant rain in Nizamabad, the major turmeric growing region. Jeera was declined 1.71 per cent at Rs 13,831 a quintal on good arrivals in the spot markets.

Darmona Tea Gets Record Rate At Coonoor Auctions - July 22 , 2008

Coonoor: Darmona Estate and Tea Industry earned a package of credits at Sale No: 29 at the Coonoor Tea Trade Association (CTTA) auctions here on July 18. Three of its leaf grades shot into the Rs 100 - category. Darmona teas were the only brand among CTC purchased-leaf factories to be sold in this category. Its broken pekoe (BP) got Rs 100, while broken orange pekoe (BOP), Rs 104. Its broken orange pekoe fannings (BOPF) grade tot Rs 112 a kg, the highest for the leaf grade of any CTC tea from any purchased-leaf factory so far in 2008. The earlier record was also held by Darmona at Rs 110. Darmona's Rs 112 was the highest price got by any leaf or dust grade CTC teas from any bought-leaf factory in last week's sales.

Selva Ganapathy Supreme got Rs 93, Ella Estate and Professor Rs 90 each, Vigneshwar Estate, Green View Estate, Kannavarai Estate, Shanthi Supreme, Deepika Supreme and Hittakkal Estate Rs 89 each, Homedale Estate Rs 88, Sree Tea Supreme Rs 87, Aroma Estate, Warwick and Highfield Estate Special Rs 86 each. Among the orthodox teas from corporate sector, Parkside got Rs 128, Chamraj Rs 125, Mailoor Rs 121, Coonoor Tea Rs 120, Havukal Rs 107, Tiger Hill Rs 105, Curzon and Glendale Rs 104 each and Kairbetta Rs 101. Some lost Rs 5 a kg. Few CTC leaf lots were taken out of the auction, but improved invoices fetched Rs 2 more. Good demand was seen for brighter liquoring CTC dusts.

Kolkata Tea Sale Sees Good Demand For Good Liquoring Ctcs - July 21, 2008

Kolkata: Last week, good liquoring CTC teas sold gladly at around last levels while the remainders were irregularly lower in line with quality. There was fair inquiry from the major blender and Tata Tea while Western India and other internal and local sections offered good support.

Darjeeling offerings met with good demand. Orthodox teas witnessed strong demand with whole leaf and larger brokens firm to dearer. Leaf intake remained to be well below that of the corresponding week of the previous year. Egyptian and Afghanistan packers lent very strong support while Pakistan and Russia packers displayed less interest with maintained activity from Kazakhstan, Yemen and other West Asian countries. The Colombo auction witnessed strong demand at dearer rates for all sorts except the poorer varieties and OPs which were irregularly lower.

Rubber Price Improves - July 21, 2008

Kottayam: The rubber prices ended higher at the weekend session. Covering groups continued aggressive procuring sheet rubber at the quoted levels as the domestic buyers were under pressure during the past few sessions due to supply concerns. RSS 4 increased to Rs 133 from Rs 131.75 a kg on July 18. The market is suffering from acute short supply and any fresh purchasing interest would certainly trigger another bull run in the domestic scene. Spot prices were (Rs/kg): RSS-4: 133 (131.75); RSS-5: 131 (130); ungraded: 129.00 (128.50); ISNR 20: 131 (130.50) and latex 60 per cent: 88.50 (88.50).

FMC Asks Indiabulls To Reduce Stake In Commex - July 19, 2008

MUMBAI: The commodity markets regulator, the Forward Markets Commission, has asked Indiabulls Financial Services to reduce its stake in the proposed national commodity exchange to 40% within a month to meet regulatory requirements.

The consumer affairs ministry had recently given an in-principle approval to the proposal of Indiabulls and MMTC to set up the country’s fourth national-level commodity exchange. In the new exchange, Indiabulls was to hold 74%, with MMTC holding the rest.

However, in May this year, the regulator came out with guidelines for setting up commodity exchanges and according to these guidelines, a single shareholder cannot hold more than 40% stake.

“No single entity can hold more than 40% stake in a commodity exchange. We have given Indiabulls a period of one month to reduce their stake in proposed exchange,”

FMC chairman BC Khatua said on the sidelines of an event organised by Multi Commodity Exchange (MCX) on Friday. Mr Khatua said Indiabulls may have to look for one or more partners to sell their stake.

Icrisat comes out with first cytoplasmic red gram hybrid variety - July 18, 2008

Hyderabad: Dr William D. Dar, Director-General of International Crops Research Institute for Semi-Arid Tropics (Icrisat), came out with the world's first cytoplasmic male sterility (CMS) based pigeonpea (red gram) hybrid (ICPH 2671). The new hybrids could provide 30-40 per cent higher yields than the ones being used now. Dr K.B. Saxena, who was the brain behind this breakthrough, said the new technology will break the yield barrier, which had been infecting Indian agriculture for the past five decades. In attaining this milestone, Dr Saxena and his team struggled for 35 years to overcome various scientific hurdles. This hybrid, christened Pushkal, is suitable for cultivation in Andhra Pradesh, Karnataka and Maharashtra. Red gram, which has an important place in Indian cuisine, is grown on about 3.5 million hectares.

Ginger exports decline short of targets - July 18, 2008

Coonoor: Ginger exports are causing worry to growers and exporters as the performance is short of volume and value targets. During 2007-08 fiscal, ginger exports could not reach the levels of the previous fiscal, let alone the target. According to the data available with the Spices Board and the exporters, in 2007-08, 6,700 tonnes of ginger were exported against 7,500 tonnes in the previous year. What caused worry was that the shipments decline despite the price got felling to an average of Rs 41.79 a kg from Rs 53. Consequently, exporters gained Rs 28 crore against Rs 39.75 crore in the previous fiscal. The export aim for the year was 12,000 tonnes and earn Rs 60 crore.

Ginger exports decline short of targets - July 18, 2008

Coonoor: Ginger exports are causing worry to growers and exporters as the performance is short of volume and value targets. During 2007-08 fiscal, ginger exports could not reach the levels of the previous fiscal, let alone the target. According to the data available with the Spices Board and the exporters, in 2007-08, 6,700 tonnes of ginger were exported against 7,500 tonnes in the previous year. What caused worry was that the shipments decline despite the price got felling to an average of Rs 41.79 a kg from Rs 53. Consequently, exporters gained Rs 28 crore against Rs 39.75 crore in the previous fiscal. The export aim for the year was 12,000 tonnes and earn Rs 60 crore.

Coonoor tea auction volume remain high - July 17, 2008

Coonoor: A vast volume of 14.16 lakh kg will be offered at Sale No: 29 of the sales of the Coonoor Tea Trade Association (CTTA) to be held on July 17 and July 18. This is the biggest offer for a single sale in nearly 30 months, barring last week when the volume totalled 15.40 lakh kg. The offer continues to be more because of a 33 per cent increase in Nilgiri production in the first half, despite a 5.2 per cent fall in June. Of the 14.16 lakh kg, fresh arrivals total 13.44 lakh kg. The balance includes teas remaining unsold in previous auctions. Of the 14.16 lakh kg on offer, as much as 10.24 lakh kg belong to the leaf grades and 3.92 lakh kg belong to the dust grades, 13.27 lakh kg belong to CTC variety and only 0.89 lakh kg, orthodox variety.

Rubber sees steady trend - July 17, 2008

Kottayam: The physical rubber prices continued the firm trend on July 16. Sharp fall in the Japanese market failed to make any visible impact on the domestic scene. RSS 4 ended flat at Rs 131 a kg as on July 15. The transactions were low. Supply worries helped the Indian market to sustain at the prevailing levels as the main marketing centres continued to suffer from an acute shortage of the raw material. RSS 3 spot increased to Rs 139.03 from Rs 137.44 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 131 (131); RSS-5: 129 (129); ungraded: 127 (127); ISNR 20: 129.25 (129.25) and latex 60 per cent: 88.50 (88.50).

Rubber rate remains unaltered - July 16, 2008

Kottayam: Spot rubber remained to rule unchanged on July 15. Sheet rubber RSS 4 ended firm at Rs 131 a kg amidst low volumes. Major manufactures were purchasers up to Rs 130 a kg for RSS 4 but they were not prepared to renew their quotes though it was really impossible for them to procure the raw material below the existing levels. The grade's spot fell by 6 paise to Rs 137.44 (137.50) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 131 (131); RSS-5: 129 (129); ungraded: 127 (127); ISNR 20: 129.25 (129.25) and latex 60 per cent: 88.50 (88.50).

Sugar future touches upper circuit - July 16, 2008

Mumbai: Sugar futures in NCDEX touched the upper circuit of 4.03 per cent at Rs 1,626 a quintal following reports of drought-like situation due to insufficient monsoon in Maharashtra. Lower acreage under sugarcane cultivation is also hoped to bring down the output next season. Castorseed also touched the upper circuit of 4 per cent at Rs 647 per 20 kg due to export demand and sharp fall in acreage under castor cultivation in the ongoing kharif season. Maize earned 2 per cent at Rs 998 a quintal on account of short covering followed by fresh buying in expectation of shortage of stock to meet the domestic demand. Turmeric prices closed on positive note at Rs 4,748 a quintal, up 2.09 per cent on the back firm spot market. In MCX, cardamom increased 2.15 per cent at Rs 642 for 20 kg on robust export demand and lack of rainfall in major growing areas of Kerala. Mentha oil increased 1.73 per cent to Rs 753 a kg on strong export demand and firm spot price.

Rubber sees steady trend -July 15, 2008

Kottayam: Rubber rates ended unchanged on July 14. RSS 4 ended flat at Rs 131 a kg as on the previous weekend. The grade ended weak at Rs 137.50 (138.76) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 131 (131); RSS-5: 129 (129); ungraded: 127 (127); ISNR 20: 129.25 (129.25) and latex 60 per cent: 88.50 (88.50).

Kottayam: Physical Rubber Prices Increases - July 14, 2008

Kottayam: Physical rubber prices increased on July 12. The prices firmed up slightly as covering groups remained optimistic during the weekend session. Sheet rubber RSS closed at Rs 131 against Rs 130.50 a kg on July 11. Spot prices (Rs a kg) were: RSS-4 :131 (130.75); RSS-5: 129 (128.75); ungraded : 127 (126.75); ISNR 20: 129.25 (129) and latex 60 per cent: 88.50 ( 88.50).

Kolkata: CTC Leaf And Dust Varieties Maintained - July 14, 2008

Kolkata: CTC leaf and dust varieties maintained to sell well at the Kolkata auctions while others were irregularly lower following decline in quality. Guwahati witnessed an irregularly lower trend, while Siliguri opened on a similar note but, with progress of sale, liquoring sorts witnessed better demand at around last levels. Darjeeling offerings met with good demand. Brokens and fannings showed a similar trend. There was good support from traditional exporters, UK/Continent, along with some Japanese interest. Cheaper varieties were asked after by the local dealers. West Asia and CIS maintained to operate actively while the Continent operated on the tippy sorts. The North Indian crop for May has been declared at 46.9 million kg (mkg), a decline of 4 mkg over 2007. The all-India May figure at 70.3 mkg is behind by 4.1 mkg. The January to May output figure for North India now stands at 142.9 mkg, an increase of 2.2 mkg, while the all-India production at 240.2 mkg is ahead by 13.8 mkg. Pakistan, Afghanistan and Sudan lent very strong support while Egypt and Kazakhstan showed less interest. The Colombo auction witnessed strong demand at dearer rates for all sorts except the poorer varieties which were irregularly lower.

Coonoor: Leaf Market Slipped - July 14, 2008

Coonoor: Leaf market slipped by Rs 2 a kg, while dust market increased by Rs 2 with a huge volume of 15.40 lakh kgs, the highest in more than 30 months, was offered at Sale No: 28 of the auctions of the Coonoor Tea Trade Association (CTTA) here on July 12. Orthodox teas generally experienced low bids, while CTC teas got impressive demand. Pakistan continued to be the major purchaser of CTC leaf grades. It purchased cleaner blacker grainy teas. It also picked up CTC dusts. Egypt purchased smaller CTC dusts paying up to Rs 72. Poland bought bolder grades paying up to Rs 50.

High-priced CTC leaf teas declined Rs 2. Better medium and medium CTC dust teas sold dearer by Rs 2. Plainer dusts got good overall demand and fetched Rs 2 more. Among corporate buyers, Hindustan Unilever Ltd purchased better medium leaf teas. Homedale Estate received Rs 92, Deepika Supreme Rs 89, Vigneshwar Estate Rs 88, Kannavarai Estate, Selva Ganapathy Supreme and Hittakkal Estate Rs 87 each, Ella Estate, Professor and Shanthi Supreme Rs 86 each, Sree Tea Supreme and Aroma Estate Rs 84 each, Green View Estate and Warwick Rs 83 each and Highfield Estate Special Rs 82.

Tea Sale Rates Up Rs 16.41 A Kg - July 12, 2008

Kolkata: In April and May this year, the average sale price of North Indian teas was increased by Rs 16.41 a kg at Rs 92.77 a kg as compared to Rs 76.36 a kg in the same period of last year and that of South Indian teas by Rs 4.35 a kg at Rs 57.21 a kg (Rs 52.86 a kg) and the average increase in the auction price of Indian teas thus was Rs 7.68 a kg at Rs 75.59 a kg (Rs 67.91 a kg), according to Indian Tea Association quoting Tea Board figures. The output shortfall during the period is pegged at about eight million kg (mkg) at 90.4 mkg (Rs 98.6 mkg). During the period, the average price increase in South Indian auctions was up by Rs 2.84 a kg at Rs 58.55 a kg (Rs 53.71 a kg). The output was increased by an estimated 11 mkg at 60.7 mkg (49.9 mkg).

$2mn Export Tea Contract From Russia - July 12 , 2008

Kolkata: A $2 million export order for supplying teas from North Bengal to Russia was inked here on July 10. The first delivery in July will be shipped by K B Tea Pvt Ltd and subsequently by North Bengal UFA Export Pvt Ltd. With this, shipments of Darjeeling orthodox and CTC teas from Dooars and Terai regions of West Bengal will resume after about 10 years.

Rubber Rates Regain - July 12, 2008

Kottayam: The domestic rubber prices regained on July 11. Sheet rubber RSS 4 ended at Rs 131.50 a kg against Rs 129.50 a kg on July 10. Spot prices were (Rs/kg): RSS-4: 130.75 (129.50); RSS-5: 128.75 (128); ungraded: 126.75 (126); ISNR 20: 129 (129) and latex 60 per cent: 88.50 (88.50).

Rubber Sees Steady Trend - July 11, 2008

Kottayam: Spot rubber closed almost firm on July 10. The only loser of the day was RSS 4, which declined by 50 paise to Rs 129.50 a kg on purchasers resistance. RSS 3 spot declined to Rs 138.27 (139.43) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 129.50 (130); RSS-5: 128 (128); ungraded: 126 (126); ISNR 20: 129 (129) and latex 60 per cent: 88.50 (88.50).

Rubber sees downward trend - July 10, 2008

Kottayam: The rubber market declined further on July 9. RSS 4 fell to Rs 130 from Rs 131.50 a kg on sustained selling from dealers. According to sources, they were responding closely to the weakness in global rubber, which continued under pressure followed by another sharp decline in oil and precious metals futures. The grade fell to Rs 139.43 (139.98) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 130 (131.50); RSS-5: 128 (129); ungraded: 126 (127); ISNR 20: 129 (130) and latex 60 per cent: 88.50 (89).

Cotton Rates May Decline On Zero Import Duty - July 10, 2008

Chennai: Cotton rates in the domestic market are set to fall with the Union Government removing the 14 per cent duty on import of cotton yielding to the long-time demand from the textile industry. Welcoming the decision of the Centre, Mr D.K. Nair, Secretary-General of the Confederation of Indian Textile Industry (CITI), said that this declaration will have a psychological impact and prices of cotton will naturally come down. India now imports cotton from the US, Brazil and South African nations. Cotton imports have fell from around 17 lakh bales (of 170 kg ) in 2002-03 to 5 lakh bales in 2006-07. Imports are hoped to be around 6.5 lakh bales this season. Exports totaled 58 lakh bales in 2006-07 against 47 lakh bales in 2005-06. Cotton output was at a record high of 270 lakh bales in 2006-07 cotton season and is likely to touch 315 lakh bales in the current season.

Copper Likely To Hit A Low Patch As China Curbs Use - July 10, 2008

Mumbai: Global copper prices may be subdued until September due to reduced industrial demand from China. Chinese copper demand may come down as the country plans to curb industrial pollution in and around Beijing, where the 2008 Summer Olympics will be held next month. China consumes nearly 25 per cent of world's copper production and therefore demand - supply situation in the country plays a significant role in setting global price trend for the base metal.

Nilgiris Tea Production Decline 5.2pc - July 9, 2009

Coonoor: Nilgiris June tea crop has declined compared to June last year because of low rainfall, but cumulative output in the first half of calendar 2008 was more than the corresponding period of last calendar, according to UPASI Tea Research Foundation. Production in its member estates during January-June rose to 8.10 million kgs from 6.34 million kgs last year.

The five-year average output was 7.23 million kgs. The production will have been still higher had it not been for a 5.2 per cent down recorded in June over last year. Crop was low in the south-west monsoon zones of Kundah and Udhagamandalam. Kotagiri zone also recorded a low production.

Copper Scrap Imports Come Down Substantially - July 9, 2008

Mumbai: The country's copper scrap import has fallen by 65% since used copper and seconds were brought under the hazardous material category and its import norms were made stringent three years ago. The total import of copper waste and scrap dwindled to 29,340 tonnes in 2007-08 from a record high of 84,500 tonnes in 2005-06. In 2006-07, it was 35,050 tonnes. Owing to fall in import, prices of secondary copper have risen. The price differential between virgin and secondary copper has reduced sharply to 8 per cent against 15 per cent earlier. At present, the benchmark copper heavy scrap is quoted at Rs 387 per kg as against Rs 178 three years earlier. But virgin red metal, which moves in tandem with the London Metal Exchange (LME) prices, was sold on July 8 at Rs 419 in Mumbai's Kika Street, the famous base metal market in the country, as compared to Rs 210 three years ago.

Securing import licence is confined only to a few organised large companies which sell scrap to small and medium units. On Tuesday, unavailability of scrap has forced buyers to pay through their nose to run their smelters. Scrap is being quoted a Rs 7,500 per tonne, recording a rise of Rs 1,500 per tonne in the last few months. The unavailability of scrap will surely push up the prices of products made of copper and allied metals including brass, Mardia said. India paid Rs 637.84 crore in 2007-08 for copper scrap imports compared with Rs 684.61 crore in 2005-06. Largely dominated by unorganised sector players, secondary copper contributes about 50 per cent of the country's total red metal production of around one million tonnes. The country consumes 6.5-7 lakh tonnes of copper annually and remaining is shipped abroad.

Rubber Price Declines - July 9, 2008

Kottayam: The rubber prices surrendered slightly on July 8. Declines in world rubber followed by yen's strength against dollar and sharp decline in oil products and crude oil futures kept the domestic market under pressure. RSS 4 fell to Rs 131.50 a kg on scattered selling from dealers. RSS 3 (spot) fell to Rs 139.98 (141.77) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 131.50 (132); RSS-5: 129 (130); ungraded: 127 (127.50); ISNR 20: 130 (131) and latex 60 per cent: 89 (89).

Tea Exporters Gain Rs 32cr More - July 8, 2008

Coonoor: Tea exporters have gained Rs 32 crore more in the first four months of the current calendar over last year. The increasing trend in earnings saw in March continued in April. Even as the exporters took a higher price averaging Rs 101.14 a kg, against Rs 100.72 in April 2007, importers picked up a higher volume of 11.9 million kg against 8.9 million kg last April. Consequently, exporters earned Rs 120 crore, as much as Rs 30 crore more than April 2007.

Rubber Prices Finishes Unaltered - July 8, 2008

Kottayam: The domestic rubber rates ended unchanged on July 7. RSS 4 was cited flat at Rs 132 a kg as on the previous weekend. The prices were steady mainly due to tight supply and most of the traders looked to be waiting for revised quotes from the tyre sector. The grade (spot) declined to Rs 141.77 (142.44) a kg at Bangkok . Spot prices were (Rs/kg): RSS-4: 132 (132); RSS-5: 130 (130); ungraded: 127.50 (127.50); ISNR 20: 131 (131) and latex 60 per cent: 89 (89).

Maize Prices Expects To Recover Soon - July 7, 2008

New Delhi: Maize prices are expected to recover soon and are likely to cross Rs 1,000 a quintal level within a month on supply concern, traders said. Maize prices are falling at both spot and futures markets due to the ban on the commodity's exports. According to the source, the impact on prices due to ban is a temporary and prices would go up again due to the supply crunch of the commodity till September, they said.

The Centre had announced ban on export of maize till October 15 to step up the domestic supply and in turn contain inflation which has risen to a double-digit level. As July-September being a lean period, the limited stock supplies would put pressure on prices till the ban period. With the sudden ban on exports, maize prices are sliding since yesterday. Spot prices fell to Rs 957 a quintal from Rs 964 a quintal. While on NCDEX, most-active July delivery of maize dropped by almost 8 per cent to Rs 894 a quintal.

The Rubber Prices Finished - July 7, 2008

Kottayam: The rubber prices finished weak on July 5. RSS 4 declined further to Rs 132 from Rs 132.50 a kg on buyer resistance amidst extremely thin volumes. The closing rate has been a major support line for sheet rubber as certain tyre companies were buyers on the grade up to that level during the week. Spot prices were (Rs/kg): RSS-4: 132 (132.50); RSS-5: 130 (131); ungraded: 127.50 (127.50); ISNR 20: 131 (131.50) and latex 60 per cent: 89 (89).

Sugar Mills Likely To Spend 60-Pc More To Keep Plants Well-Oiled - July 7, 2008

New Delhi: Presently sugar mills are facing a steep rise in the off-season maintenance and repair cost. This cost has shot up by 40-60 per cent for different sugar mills owing to a spurt in steel and iron prices.

It is likely to shoot up to Rs 8 crore this time, said the source. Flat steel product prices have gone up by 17 to 24 per cent since April 2007 while long products like bars and rounds have appreciated 50 to 60 per cent over the same period. Generally, sugar mills run between October to April every year, which is the crushing period and are shut during rest of the year.

After the crushing comes to an end, mills need to undergo repair in order to resume crushing in the next season. The usual increase every year used to be in the range of 8-10 per cent. The company spent Rs 9 crore on maintenance of its 3 mills last year. It expects this to go up to about Rs 12 crore this year.

Govt Rules Out Ban On Cotton Exports - July 5, 2008

MUMBAI: Centre has no plans to ban cotton exports but may cut the import duty to boost supplies and ease prices, which hit record highs in June, a senior official said on Friday। “There is no plan to ban cotton exports,” JN Singh, joint secretary, ministry of textiles, said here on Friday.

The government on Thursday banned corn exports till October 15 to help domestic poultry industry by increasing supplies and lowering of Prices. The domestic textile industry has been seeking a ban on cotton exports to tame record prices.

Prices of popular Shanker-6 variety of cotton touched a record Rs 28,500 per candy last month, from about Rs 21,000 in the same period last year, Sandip Jain, a cotton trader in Ahmedabad, said.
India has emerged as a major exporter and is likely to export 8.5 million bales in the year ending September 2008, up 47% from 5.8 million bales last year, according to Cotton Advisory Board, a industry and government body. To help tame prices in the local markets, the government may lower import duty on cotton from current levels of 10%, Mr Singh said. Inflation accelerated to 11.63% in late June, above forecasts and its highest since the series began in 1995. “Advance sale of cotton for December and January delivery is being done at record prices, mainly by exporters and large traders. High prices have pushed down demand from the local mills,” said Mr Jain.

Drought-Resistant Groundnut To Hit Markets Soon - July 5, 2008

NEW DELHI: Indian farmers will soon get access to a new variety of groundnut that is drought-resistant and can be cultivated even in areas where water is scarce. “Genetic mapping has discovered certain genes in groundnut that are droughtresistant. The testing of seeds of this variety is at an advanced stage,” said Rajeev K Varshney, a senior scientist at Hyderabad’s International Crop Research Institute for the Semi-Arid Tropics (ICRISAT).

“The new seed can grow even in drought-prone areas and will produce higher yields. In Asia and Africa, where water shortage is a major issue, the new seed will be a boon for farmers,” Varshney, whose specialisation is applied genomics, said.

A majority of Indian farmers are dependent on the monsoon for their requirement of water. However, rainfall is not uniform in the country. In 2006, for instance, of the 533 meteorological districts, 112 received excess rain, while the situation was normal in 193 districts. Rainfall was deficient in 195 districts, while 17 districts received only scanty rain. Varshney, who was in the national capital to attend a seminar of the National Academy of Agricultural Sciences (NAAS), said ICRISAT was developing improved seeds for chic-pea, pigeon-pea, pearl millet, and orghum. “There is need to develop improved seeds for several crops by making them drought-resistant. India has vast stretches of land that are semi-arid or drought-prone. The new seeds will help a lot in these areas,” he said.

The Bill and Melinda Gates Foundation has sponsored the research on the new groundnut variety. Scientists from Brazil’s Catholic University, the Brazilian Agricultural Research Corporation, and the University of Georgia are engaged in the project. According to ICRISAT, groundnut is the 13th most important food crop of the world, the fourth most important source of edible oil and the third most important source of vegetable protein. It is grown on 26.4 million hectares worldwide in nearly 100 countries with the main producers being China, India, Nigeria, the US, Indonesia and Sudan. An official estimate says that India produced 4.09 million tonne of groundnut in 2006-07 against 5.94 million tonne in 2005-06. According to ICRISAT, groundnut in India is grown on 5.7 million hectares of land with an average productivity of 0.8 tonne per hectare. Enhanced productivity would translate into greater foreign exchange for India, which exports groundnuts to over 60 countries worldwide, with Malaysia being one of the key importers.

Turmeric Futures Rise As Cultivation Gets Delayed - July 5, 2008

MUMBAI: Turmeric futures ex MUMBAI: Turmeric futures ex MUMBAI: Turmeric futures ex tended gains to hit a new contract high on Friday, tracking a firm spot market and on slower pace of cultivation in the main producing states due to lower rainfall, analysts said. “Sowing operations are lagging behind compared to last year and they are providing opportunity to traders to speculate about the next year’s output,” said Abhay Lakhwan, an analyst at Religare Commodities. Andhra Pradesh, the biggest producer, received very low rainfall in mid-June, which delayed cultivation by a fortnight. Earlier this week, the state received rainfall in some parts, but traders said it was not sufficient for cultivation. Cultivation was also delayed in some parts of Maharashtra. Turmeric cultivation starts with the arrival of monsoon rains in June in southern and western states, the major producers. In Nizamabad, a key spot market in Andhra Pradesh, price rose Rs 28 to Rs 4,208 per 100 kg. The benchmark August contract on NCDEX hit new high of Rs 4,555 per 100 kg in afternoon trade. , but had given up part of the gains by the evening, when profit-taking emerged.

Kochi Tea Auction See Steady Trend - July 4, 2008

Kochi: There was better demand from exporters for orthodox leaf tea and also for smaller CTC leaf varieties at the Kochi Tea Auction. Blenders were fairly active at the dust auction while interstate purchasers were less active at the leaf tea auction. There was 8,59,000 kg of dust tea on offer where CTC prices eased by Rs 2-3. Medium CTC prices continued barely firm. Orthodox high grown dust remained steady to dearer, while medium orthodox rates eased by Re 1 to Rs 2. Best CTC dust got Rs 67-78, medium CTC quoted Rs 60-65 and below medium was at Rs 55-60. High grown BOPD quoted Rs 90-100, medium BOPD got Rs 52-56 and secondaries ranged at Rs 50-52.

Chilli Exports Touches All Time High - July 4, 2008

Coonoor: The country's chilli exports in 2006-07 fiscal touched an all-time high, an analysis of the information available with Spices Board and exporters reveals. Exports increased to 209 thousand tonnes from 148.5 thousand tonnes in the previous fiscal. Because of this, despite the rates got dropping to Rs 52.51 a kg from Rs 54.39, earnings increased significantly to Rs 1,097.50 crore from Rs 807.75 crore. This marked an increase of 41 per cent in volume and 36 per cent in value.

The board had fixed an export target of 1.35 lakh tonnes valued at Rs 675 crore. But, the achievement in 2007-08 was as much as 155 per cent of the volume and 163 per cent of the value aimed. Chilli accounted for 47 per cent in volume and 25 per cent in value of the total export of spices and spices products.

According to the Spices Board, its strict measures comprises compulsory sampling and analysis for aflatoxin and 'adulterant Sudan' in export consignments made Indian chilli more acceptable to importers. Malaysia was the largest purchaser of Indian chilli. Bangladesh, Sri Lanka and the US purchased sizable volumes.

Chilli prices rule high in domestic markets this fiscal. In Chennai, new Ramnad chilli now sells Rs 55-80 a kg against Rs 36-50 this time last year. In Virudhunagar market, best grade sannam chilli now sells Rs 48-51 a kg against Rs 47-50 last year. In Tuticorin market, Guntur sannam best chilli now sells Rs 50-55 a kg against Rs 50-51 last year.

A Record Rate For Soyabeans In The Global Market Is Likely To Prompt - July 4, 2008

Chennai: A record rate for soyabeans in the global market is likely to prompt farmers to plant more of the oilseeds this year.

There is an aim among farmers to grow more soyabean this year. But rains in the next couple of weeks hold the key to any increase in area, said Soyabean Processors Association of India (Sopa). In Asian trade on July 3, soyabean July contract was cited at a record $16.51 a bushel ($750 a tonne). Soyabean rates have been increasing since last week on worries that the US weather may not be conducive for the crop's growth.

Last year, soyabean output in the country was a record 95 lakh tonnes against 71.5 lakh tonnes the previous year. The production was up on increased acreage of 88.5 lakh hectares and good monsoon.

Rubber Rates Increase On Global Trend - July 3, 2008

Kottayam: The rubber rates made sharp gains on July 2. The market reacted in tandem with the global mood and RSS 4 increased to Rs 133 a kg from Rs 131.50 a kg as covering groups and purchase agents remained active in the session. Certain major manufacturers were purchasers on sheet rubber up to Rs 132 a kg, while strong export presence was also felt in almost all counters. The grade ended at Rs 142.04 (141.19) a kg at Bangkok spot. Spot prices were (Rs/kg): RSS-4: 133 (131.50); RSS-5: 132 (130); ungraded: 128.50 (127.50); ISNR 20: 132 (130) and latex 60 per cent: 89 (89).

Is Ban On Cotton Export Justified? - July 2, 2008

Mumbai: The domestic cotton textiles industry has in recent weeks intensified its efforts to get cotton exports banned. From its own perspective, the industry may be justified in demanding a prohibition on exports as internal prices have risen to levels uneconomic for the industry.

The mills have also sought duty-free import of cotton from abroad. Currently, there is a 10 per cent customs duty. The Ministry of Textiles is reportedly in the process of examining a ban on exports and allowing duty-free imports. The intention is to bring down high domestic prices of cotton.

Word is also being spread that middlemen or traders have been hoarding cotton and benefiting from rising prices. What should the government do? First, it should not be swayed by lobby pressure. There are several dimensions to the issue of high cotton prices and there are several stakeholders in the cotton sector; and each one deserves a good deal.

Rising output

Admittedly, in the current season (2007-08), out of the estimated production of nearly 315 lakh bales (of 170 kilograms each), as much as 80 lakh bales or close to a quarter have been shipped out. This is unprecedented in the history, albeit recent history, of Indian cotton.

Rising domestic output and attractive global prices have ensured such an extra-ordinary performance. Cotton growers have been the direct beneficiaries of this level of exports and the consequent rise in domestic prices.

Unlike many field crops, cotton pickings are spread over a few months in different regions of the country. Arrivals usually peak during December-January months; that is the time prices are the lowest. Indeed, given the level of production, purchases by exporters have ensured that there was no collapse in market rates. Transmission of price signals also allows growers in different regions to plan their marketing and obtain remunerative prices.

One of the major reasons for sustained increase in the country’s cotton production in last 3-4 years is the positive price signal that growers have been able to obtain. Exports have also helped establish Indian cotton in the global marketplace.

There is, of course, scope for improving upon the export performance in terms of price and quality. But that is a different exercise altogether, not connected with the demand for a ban on export itself.

Two issues

Is a ban on cotton export justified? There are two issues to be considered. First is that the cotton picking season has come to an end and almost 90 per cent of the crop has been marketed. At this point of time, a prohibition on export will not affect growers significantly.

However, a ban will surely send unwarranted negative signals to the world market about India’s unsteady trade policy. Already the country has attracted flak for banning export of commodities like rice. Also, a negative trade policy (ban on export) and consequent price impact may discourage some growers from planting cotton.

Until about three months ago, the domestic textile industry complained about the adverse effects of a firming rupee on textile exports. Now that the rupee value has eroded by as much as 10 per cent, it seems to be whipping up the issue of high cotton prices.

A ban on export may have a very limited impact on the domestic market. Most of the export shipments have already been effected. The volume of pending commitments is reported to be small. As the rupee has appreciated and the rupee realisation of exports would be higher, instead of an export ban, imposition of a modest export duty may be considered.

As for duty-free imports demanded by the industry, this has been a long pending one. There is no merit in this because, for export production, duty-free imports of raw material are already allowed. Textile mills are at liberty to import cotton at zero-duty for producing textile products for the export market.

Lessons from traders

Another objection relates to hoarding by middlemen. Middlemen or traders have been able to read the market correctly, well in advance, and have purchased cotton for subsequent sale to mills or exporters. If traders have a positive price outlook and are able to take savvy trading positions by buying low at the time of harvest, why should mills not follow?

There may be something wrong with the commercial intelligence capability of the mills. Nothing prevents the textile mills from procuring their raw material requirement at the time of harvest or heavy arrivals during the peak marketing season.

Mills should build capacity to compete with traders in the marketplace. For the domestic cotton textile mills a great opportunity is emerging for establishing backward linkages. If they want to have captive raw material sourcing, contract farming is the only way forward. The industry has a lot of homework to do instead of lobbying the government for negative trade policies.

Rubber Witnesses Steady Trend - July 2, 2008

Kottayam: Domestic rubber rates were firm on July 1. RSS 4 closed flat at Rs 131.50 a kg as on June 30. RSS 3 increased further to Rs 141.19 (140.42) a kg at Bangkok spot. Spot prices were (Rs/kg): RSS-4: 131.50 (131.50); RSS-5: 130 (130); ungraded: 127.50 (127.50); ISNR 20: 130 (130) and latex 60 per cent: 89 (89).

Sugar Sales Demand In Decontrol - July 1, 2008

Madurai: The Sattur Chamber of Commerce and Industries has asked decontrol in sugar sales. In a letter addressed to the Prime Minister, the General Secretary of the chamber, Mr P.T.K.A. Balasubramanian, noticing to the dual price policy in vogue in the sale of sugar, said that sugar mills supply 10 per cent of their production at decreased rates and sell the remaining 90 per cent in the open market. With the crude oil price increasing alarmingly at the world level, output of ethanol from sugar is necessity. For this sugar cane production requires to be increased. With the sugar production hoped to go down both in India and abroad, steps are needed to augment the production.

Increase Rubber Price - July 1,2008

Kottayam: Physical rubber prices ended higher on June 30. RSS 4 increased further to Rs 131.50 from Rs 131 a kg during the previous weekend. The grade touched Rs 133 a kg on early trades as Japanese indices ruled firm during the morning session. Supply worries continued to haunt the main marketing centres. RSS 3 (spot) increased to Rs 140.42 (139.73) a kg at Bangkok spot. Spot prices were (Rs/kg): RSS-4: 131.50 (131); RSS-5: 130 (129.50); ungraded: 127.50 (127); ISNR 20: 130 (130) and latex 60 per cent: 89 (89).