World Liquidity Crunch Affects Trade - Oct 31, 2008

Chennai: Edible oil importers are whipped for cash as overseas banks fall to accept usance letters of credit from Indian importers, which admits them to pay their suppliers over a 120-day period. According to trade sources, overseas banks, which are witnessing a liquidity crunch themselves, are falling to accept usance letters of credit as they are not willing to commit themselves to future payments. Importers normally choose for usance letters of credit, but with the value of the rupee falling sharply in recent weeks.

The overseas banks do not want to commit themselves to such long duration. This means that purchasers here will have to pay their suppliers immediately after shipment that is they will have to opt for a 'sight LC.

Continuous Fall In Pepper Output In Kerala Country Mainly - Oct 31, 2008

Kochi: The continuous fall in pepper output in Kerala, the main producer of the commodity in the country, mainly due to neglect of the crop, has led in the national output hovering around 45,000 tonnes a year from 80,000 tonnes in 2001-02. According to Kerala Economic Review-2007, the State had 2,26,094 hectares under pepper with a total output of 64,264 tonnes in 2006-07. The 2009 crop, according to Spices Board sources, is pegged to be less than 50,000 tonnes due to continuous decline in Kerala's pepper production.

The total production in Karnataka has increased to 15,000 to 20,000 tonnes, at present, from a meagre 2,260 tonnes in 2002-03 from a total area of 9,900 hectares. As against this, the State's pepper output is estimated to be somewhere between 30,000 and 40,000 tonnes next year, they predicted

Japanese Rubber Futures Domestic Market Covering - Oct 31, 2008

Kottayam: The physical rubber prices increased on Oct 30. Sharp gains in the Japanese rubber futures kept the domestic market firm amidst covering purchases. RSS 4 increased to Rs 88.50 from Rs 88 a kg on Oct 29. Prices increased later in the morning session reflecting oil futures strong performance. The grade (spot) ended firm at Rs 91.77 (Rs 91.27) a kg at Bangkok. The per kg spot rates were: RSS-4: 89.50 (88), RSS-5: 86.50 (86), ungraded: 82.50 (81.50), ISNR 20: 84.50 (84.50) and latex 60% : 62.50 (62.50).

No Cause For Import Duty On Edible Oils - Oct 25, 2008

Mumbai: With kharif 2008 harvest and market arrivals gathering momentum, domestic oilseed prices have started to come off their recent highs. A sharp downward correction in global vegetable oil prices since July this year is witnessed exerting its influence on the domestic market, given the high level of imports into the country. Although many should have seen it coming, the precipitous decline in global prices has put the domestic industry. in the defensive as it failed to see the writing on the wall, having got carried away by the bullish fervour.

Of overseas suppliers in the wake of alleged large-scale contract defaults have not helped the cause of Indian importers either. It is a pity the industry did not learn any lesson from the long bear run of 2001-02.

Rubber Export As Part Of The Attempts Ensure A Stable - Oct 25, 2008

Kottayam: To assure price stability, permanent rubber export is indispensable, said Rubber Board. The meeting of the rubber exporters convened at the Boards headquarters at Kottayam to adopt necessary measures for rubber export as part of the attempts to ensure a stable price for the commodity. Due to the unexpected changes in climate, rubber production is likely to slow down at the global level and therefore. The meeting fully supported the measures taken for export.

Though it was convened with a view to increase exports at a time the world price was ruling above the indigenous price, subsequent developments proved that the difference in both the prices had narrowed down and therefore, the meeting assessed that the export was not practical.

Extended Monsoon Delays Cotton Arrivals - Oct 25, 2008

Chennai: The prolonged rainy season across much of the country forced back harvest and ginning of cotton, reflected in the latest arrivals data. Data obtainable with Globecot, a global consulting firm for the fibre and textile industries, advise that cumulative arrivals via the week ending Oct 18 stand at 1.3 million bales (170 kg), 21.3 per cent less than last year. The pace of arrivals this year lags behind compared with the same period a year ago in almost every State, reflecting the widespread delay.

Given reports that the volume of rain from the monsoon was close to normal across the country. if a little delayed several organisations continue to project that total output will increase from last year, implying that cumulative arrivals will eventually surpass last year's total.

Gambia Aiming For Self Sufficiency In Rice - Oct 24, 2008

Gambian President Yahya Jammeh has expressed hope that the African nation would be self-sufficient in rice production in three years time with the introduction of new varieties of rice and assistance from Taiwan.

According to reports in the Daily Observer, Jammeh revealed this Tuesday during a meeting with Taiwanese. Ambassador in Banjul, Richard Shih, and officials who are on a technical mission in Gambia. The President has also called for commitment from Gambians, saying: "It is a question of commitment. It will require a mass sensitization for attitudinal change.

Pakistan Exports Fall Amid Global Slowdown - Oct 24, 2008

Pakistan’s rice exports are expected to fall almost 40 % during the current month as compared with the same period last year in the wake of decreasing international prices.

Pakistan rice exports this year in November are expected to remain at 75,000 MT compared to 1,50,000 MT last year.

Pakistan is the world’s fifth-largest rice exporter and it had removed a minimum export price on basmati and non-basmati rice after expectations of a bumper crop.

Market Lost Steam World Futures Declined - Oct 24, 2008

Kottayam: Rubber rates turned weak on Oct 23. The market lost its steam as the world rubber futures declined sharply in to the minus territory on early trades at TOCOM. But a partial regain in the trend setter on late trading failed to rescue the domestic rates and RSS 4 ended weak at Rs 90 against Rs 92 a kg on buyer resistance. Spot rates were (Rs/kg): RSS-4: 90 (92); RSS-5: 88 (89); ungraded: 86 (87); ISNR 20: 86 (86) and latex 60 per cent: 67.50 (67.50).

Pressure To Remove Export On Basmati Intensifies - Oct 23, 2008

New Delhi: The pressure on removing of the current Rs 8,000-a-tonne duty on export of basmati rice is intensifying, with paddy realisations for farmers ruling 10-12 per cent lower compared to last year. On Oct 20, prices of Pusa Basmati-1 paddy averaged Rs 1,800 a quintal in the major mandis of Punjab and Haryana. The trade blames the lower realisations to the Rs 8,000-a-tonne (Rs 800 a quintal) export duty clamped on basmati shipments since May 10.

Since the exporters are not able to pass on the tax to the purchasers, they are loading it as much as possible on to the farmers. The situation has been rendered worse by competition from Pakistan, following the dip in its currency from Rs 63 to over Rs 81-to-a-dollar since the begin of the current fiscal much more than the Indian rupee's corresponding declined from Rs 40 to Rs 49.3. On the other hand, export of basmati as well as Pusa-1121 rice from India remains to attract an MEP of $1,200 or Rs 48,000 a tonne. Indian exporters have not been able to ink a single contract for rice from the new Pusa Basmati-1 crop.

Pepper Futures Decline Additional Margin - Oct 23, 2008

Kochi: Pepper futures market fell on Oct 21 following the withdrawal of the additional margin on sellers and for want of follow up support from overseas markets. The regulator has withdrawn on Oct 21 the four per cent additional margin imposed on sellers recently taking into the consideration the unhealthy scenario prevailing in the futures markets. Investors were liquidating their stocks both farm grade and validity expired materials and buying back futures. November contract declined by Rs 166 to Rs 12,655 a quintal.

December and January fell by Rs 190 and Rs 199 a quintal to Rs 12,782 and Rs 12,925a quintal respectively. Spot prices in tandem with the futures market trend slid by Rs100 a quintal on Oct 21 to close at Rs 12,600 (un-garbled) and Rs 13,200(MG 1).

India Mills Likely To Prefer To Purchase Wheat - Oct 23, 2008

Chennai: Roller flour mills in South India may respond to the tenders floated by the Food Corporation of India (FCI) to sell 8.4 lakh tonnes of wheat under the open market sale scheme. Last week, FCI floated the tenders for bulk consumers such as flour mills and biscuit manufacturers as part of the Centre's effort to step up supply in the domestic market. Mills in Bangalore and other parts Karnataka will be purchasing wheat from the FCI tender,. Mills in Tamil Nadu will purchase wheat from FCI under the open market sale scheme.

The rates at which wheat is offered works out cheaper than buying it in markets in North India and having it transported here. FCI is giving wheat to mills in Karnataka and Tamil Nadu at Rs 1,154 a quintal. If the cost of transporting wheat to the mills from the regional centre is taken, then it works out to around Rs 1,200 a quintal.

On the other hand, if the mills are to purchase wheat from, say, New Delhi market, they will have to pay Rs 1,085 a quintal there. If packaging and transportation is taken into consideration, then the costs for the mills to get wheat at their gates work to around Rs 1,300 a quintal. Of the 8.4 lakh tonnes, FCI will sell 75,000 tonnes in Maharashtra, 60,000 tonnes in Kerala and 50,000 tonnes each in Andhra Pradesh, Tamil Nadu, Karnataka, Delhi, Madhya Pradesh and West Bengal.

Pepper Futures Displayed An Uptrend Supply - Oct 22, 2008

Kochi: Pepper futures displayed an uptrend and all the contracts increased on Oct 21 on tight supply. The market was by and large slow as the exporters have assumed a wait and watch approach given the prevailing liquidity squeeze. November contract went up by Rs 107 to Rs12,842 a quintal. December and January increased by Rs114 and Rs102 a quintal to Rs 12,990 and Rs 13,138 respectively. Total turnover on NCDEX increased by 99 tonnes to 4,528 tonnes, while total open interest increased by 34 tonnes to 15,444 tonnes.

Net open position for November fell by 419 tonnes to 7,472 tonnes, December and January increased by 306 tonnes and 158 tonnes respectively. As there is a strong domestic demand, dealers from the primary markets took delivery from exchanges' validity expired stocks for north Indian markets. In the overseas market everybody is on a wait watch mode. Indian parity continued competitive at $2,900 - $3,000 a tonne (c&f).

Vietnam was not offering Asta grade while Indonesia was quoted above the Indian parity. Indian pepper at present is at an advantageous position, they claimed. Spot prices remained unaltered at previous levels at Rs 12,700 (un-garbled) and Rs 13,300 (MG 1) a quintal on Oct 21.

Soymeal Exports Likely To Million - Oct 22, 2008

India's soymeal exports are likely to surge by 14 per cent to 5.5 million tonnes this year though realisation may go down as fears of global recession have already started squeezing prices in international markets. Last year the prices touched $492 a tonne. But now they are ruling at the $300-level. The exports touched 4.89 million tonnes in 2007-08.

Global Buyers Likely To Avoid Indian Maize - Oct 22, 2008

In the wake of global maize prices ruling lower than the Indian minimum support price (MSP), international buyers are unlikely to come to purchase commodity from India. According to the source, global buyers are expected to buy one million tonnes from India, not even half of last year's volume. Mandi price of maize in India was ruling at Rs 840 levels, which was MSP fixed by the government, while global rates at Chicago Board of Trade as on October 16, were at Rs 737 a quintal free on board.

In July this year, India had prohibited export of maize for four months till October 15, to contain inflation which was hovering at double-digit level. After the expiry, the government has not extended the ban. Last year, there was a record export of over 3 million tonnes and India remained the most preferred destination for maize buying. Projecting on price trend in the coming days, Sheth said domestic maize rates would hover between Rs 840 and Rs 875 a quintal. It is unlikely to cross Rs 900 a quintal level.

Sugar Output To Slip Over 30-Pc In Maharashtra - Oct 21, 2008

Sugar production in Maharashtra may fall by over 30 per cent to around 6 million tonnes (MT) in the current 2008-09 season owing to a lower sugarcane produce.Maharashtra produced about 9.1 MT during the 2007-08 season (October-September) making the state the lar-gest sugar producer in the country.

According to the source, the crushing was scheduled to begin in mid-October. However, it has been delayed due to Diwali and now the cane crushing would begin in the state by October-end. The delay in cane crushing would lead to a higher productivity as sugarcane would remain in the fields for a longer period. The sugar production in Maharashtra is likely to touch 6 MT, up from the earlier estimate of 5.7 MT. The average sugar recovery stood at 11.94 per cent.

FMC Chief Expects Ban On 8 Commodities - Oct 21, 2008

The Forward Markets Commission (FMC) expects the prohibition on trading of eight commodities on exchanges will go in November. They will take a call after analyzing the situation in mid-November and recommend suspension of the ban on four commodities (rice, wheat, urad and tuar), Mr B.C. Khatua, Chairman of FMC, said. While the ban of trade in rubber, chana, soya oil and potato would come to an end automatically in November, the ban on rice, wheat, urad and tuar has no time frame for suspension.

The prohibition came in the wake of sharp criticism from Left parties, which alleged that the futures markets had triggered sharp rise in prices of these vital commodities. The slowdown had affected the trading of agricultural commodities. There is a fall of 50 per cent from Rs 13 lakh crore in 2006-07 to 6-6.5 lakh crore in 2007-08.

Higher Cane Rates Could Affect Margins - Oct 21, 2008

The Uttar Pradesh Government's determination to increase the cane procurement price advised by the State for the current season from Rs 125 to Rs 140 per quintal likely to pose a substantial threat to the earnings of sugar mills situated in the State. Mills in the State are already involved in a court battle relating to the previous year's State Advised Price or SAP of Rs 125 a quintal, having shelled out Rs 110 per quintal the previous season. An upward revision in the State Advised Price (SAP) for the current season likely to imply a substantial spike in procurement costs for the mills.

A higher SAP gives increase to doubts on whether mills in the State will benefit from the firmer sugar prices hoped this season. Domestic sugar prices, which had increased by about 22 per cent between January and September, have cooled about 10 per cent on higher supplies released for the festive season and lower global sugar prices.

Tea Prices Decline At Coonoor Auction - Oct 20, 2008

Coonoor: Prices declined by Rs 2 a kg on the average at Sale No 42 of the auctions of Coonoor Tea Trade Association (CTTA) on Oct 17 as the demand was insufficient to absorb the huge offer of 13.07 lakh kg - the highest for 11 weeks except last week. CTC leaf market saw select demand. Better medium grades lost a rupee a kg. Whole leaf orthodox teas relaxed Rs 3-5. Brokens shed Rs 2-3. Brighter liquoring CTC dusts lost a rupee.

Better medium sorts got Rs 2 lower. On the export front, CIS purchased bolder grades for Rs 72-74 a kg. Egypt picked up medium sorts in the range Rs 74-82. Quotations showed bids ranging from Rs 70-74 a kg for plain leaf grades and Rs 90-97 for the brighter liquoring sorts.

Pepper Impervious By Turmoil In International - Oct 20, 2008

Kochi: The current financial turmoil global over does not seem to have made any affect on pepper prices in the world market. The reasons attributed to such a scenario are the tight supply position in Vietnam and India, on the one hand, and the strengthening of the Brazilian currency against the dollar, on the other. In India, already the market has displayed signs of upward swing on thin availability and good demand, as the domestic purchasers have become active including the grinding industry to cover for their requirements for the winter season.

Palm Oil To Be A Feasible Energy Source - Oct 20, 2008

Chennai: Delighting the advantage of being more profitable and feasible than soyabean oil, palm oil is likely to find new uses for industrial application and as an energy source, according to Mr Dorab Mistry, Director of Godrej International. Currently, there are curbs on palm oil use in energy due to lack of certified green credentials and with the problem being. efficiently addressed and once certified green palm oil is available in sufficient quantity a vast new market will open up, Mr Mistry said.

presenting a paper on 'The competitive advantage of palm oil versus other vegetable oils' at China International Conference of Seed Crushers 2008 held in Nanjing, China. Palm oil will produce environment-friendly, bio-degradable oleochemicals to substitute petro-chemcials and it will make vast strides to give world energy security via bio-fuel use.

Rubber Witnesses Rather Dull Trading Session - Oct 18, 2008

Kottayam: Rubber prices ended firm on Oct 17. RSS 4 ended unaltered at Rs 84 a kg as on Oct 16. There was no consumer support at the main marketing centres but minor covering buys and lingering monsoon rains kept the prices unchanged in a rather dull trading session. RSS 3 spot declined sharply by Rs 3.67 to Rs 84.45 (Rs 88.12) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 84 (84); RSS-5: 81.50 (81.50); ungraded: 78 (78); ISNR 20: 79 (79) and latex 60 per cent: 67.50 (67.50).

Sheet Rubber Declined To Purchaser Resistance - Oct 17, 2008

Kottayam: Rubber rates turned weak on Oct 16. Sheet rubber RSS 4 declined to Rs 84 from Rs 86 a kg on purchaser resistance. The Japanese rubber futures opened lower on heavy long liquidation followed by sharp declines in oil and precious metals futures coupled with Yen's increase against dollar. Spot prices were (Rs/kg): RSS-4: 84 (86); RSS-5: 81.50 (82); ungraded: 78 (80); ISNR 20: 79 (81) and latex 60 per cent: 67.50 (70).

CCEA Approves Rs 50 Per Quintal Paddy Bonus - Oct 17, 2008

New Delhi: The Centre, on Oct 16, cleared Rs 50/quintal bonus for paddy, over and above the already announced minimum support price payable during the current 2008-09 kharif marketing season (October-September). The decision, taken at the meeting of the Cabinet Committee on Economic Affairs here, would effectively increase the official procurement price to Rs 900 a quintal for common paddy and Rs 930 a quintal for Grade 'A' varieties. Although below the Rs 1,000-1,050 a quintal range, suggested by the Commission for Agricultural Costs & Prices, the final cleared prices still work out Rs 155 more than the Rs 745-755 a quintal levels for 2007-08.

The bonus declaration, which was in the air for the past few weeks is hoped to spur procurement by the Food Corporation of India and State agencies. As on Oct 16, only 48.37 lakh tonnes (lt) of paddy had arrived in the mandis of Punjab, as against 60.14 lt during the corresponding period of the 2007-08 season. As a result, overall rice procurement during the ongoing season, at 37.74 lt till Oct 16, has been marginally below last year's progressive figure of 37.87 lt.

Government Likely To Reduce Export Duty - Oct 17, 2008

As per the steel Ram Vilas Paswan, the Indian Government is likely to impose an import duty on steel and withdraw a 15% export tax to help domestic companies. Such a step will support companies like, Tata Steel, Steel Authority of India and many more. This step is required as global steel prices have fallen more than a fifth from this year's peak in June and July.

Moreover, Paswan added in his comment that Tata Steel and SAIL have suggested chopping of export duty and imposition of import duty, on the back of fall in the international prices.

Cotton Production To Increase Marginally - Oct 17, 2008

Mumbai: Cotton output in the year ending September 2009 is pegged at 31.65 million bales, slightly higher than last year's production of 31.5 million bales. The output is hoped to be higher even as the acreage under cotton cultivation fell to 9.26 million hectares against 9.5 million hectares last year due to 4.27 per cent increase in yield to58.5 million bales against 56 million bales last year. The total cotton accessibility for 2008-09 is likely to be 37 million bales, comprising 4.3 million bales of carry-over stock.

The global economic slowdown is hoped to keep the prices under pressure in both domestic and world market. However, the farmers in India will be protected from the drop in prices as the Government has declared a minimum support price of Rs 2,200/quintal for medium staple and Rs 3,000/quintal for long staple variety. Total cotton exports in 2008-09 are witnessed down at about 7.5 million bales, compared to 8.5 million bales a year ago.

Rubber Finished Almost Firm Closed Unaltered - Oct 16, 2008

Kottayam: Spot rubber finished almost firm on Oct 15. RSS 4 closed unaltered at Rs 86 a kg as on Oct 14. The rubber futures on the Tokyo Commodity Exchange were hit badly by another fall in oil futures and gains in yen against dollar. All six contracts fell in to life time lows on early trades but regained partially on late trading as sentiments improved slightly in the afternoon. RSS 3 (spot) declined further to Rs 89.57 (95.74) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 86 (86); RSS-5: 82 (82); ungraded: 80 (78); ISNR 20: 81 (81) and latex 60 per cent: 70 (70).

Pepper Futures Market Continued Down Trend - Oct 16, 2008

Kochi: Pepper futures market continued its down trend on selling pressure and under the influence of the decline in the stock markets. October contract declined by Rs 210 a quintal to Rs 12,650. November and December declined by Rs 262 and Rs 252 a quintal to Rs 12,679 and Rs 12,825 respectively. Total turnover on NCDEX went up by 1,874 tonnes to 7,890 tonnes. Total open interest fell by 270 tonnes to 16,995 tonnes. Liquidity crunch following the current economic turmoil world over has drove the investors, who have no connection with the commodities markets and had made investments in it, are selling spot the stocks held by them in warehouses at October price.

Add to this the rupee is weak. The fall in futures price coupled with a weak rupee has eased the Indian parity to $2,900-3,000 a tonne (c&f). In the global scenario, everybody is now looking at Brazil. On Oct 15 sellers were quoting $2,600-2,650 at tonne (f.o.b) for B1 560 GL.

Increasing Exports Production Cheer Sector - Oct 16, 2008

Chennai: There is some joyfulness in the cuppa as the Indian tea industry is on a comeback mode with output and exports increasing despite competition from several countries such as Vietnam and Bangladesh. Data obtainable from the Tea Board show that exports increased by about 18 million kg (mkg) to 124.04 mkg till August this year, compared with the corresponding period last year. Overseas demand is on the increase and prices are firming up owing to good quality teas, besides shortage of teas in the world market. Pakistan, Egypt, Iran and Iraq and West Asian countries take up the permanent slot in the export list. On the output front, the country produced 123.1 mkg during August 2008 as against 116.3 mkg during the corresponding period last year.

For the January-August 2008 period, output has been pegged at 599.7 mkg tea against last year's 576.1 mkg. During August this year, south Indian production declined to 14.1 mkg (15.6 mkg), while north Indian production rose to 109 mkg (100.7 mkg). However, the period from January to August this year witnessed south Indian production increase to 155.1 mkg (140.7 mkg) while north Indian production was at 444.6 mkg (435.4 mkg).

Coonoor Tea Association Volumes Remain High - Oct 16, 2008

Coonoor: Volume offered for sale at the Coonoor Tea Trade Association (CTTA) auctions remains to be high with the catalogues of brokers adding to 13.07 lakh kg for Sale No: 42 to be conducted on Oct 16 and Oct 17. The balance includes teas remaining unsold in previous auctions. Of the 13.07 lakh kg on offer, 9.12 lakh kg belong to the leaf grades and 3.95 lakh kg belong to dust grades. The proportion of orthodox teas remains to be low in both the leaf and dust grades.

Coonoor An Analysis Of Purchasing Pattern - Oct 15, 2008

Coonoor: An analysis of the purchasing pattern indicates that this week, as many as 35 marks of CTC teas manufactured by private small-scale factories, popularly called bought-leaf factories, increased to the Rs 100 price-band at Coonoor Tea Trade Association (CTTA) auctions. Overall, this displays that Nilgiri tea offers have quality and purchasers are prepared to support them with high-bids. Homedale Tea Factory's five marks, sold by Global Tea Brokers, maintained in the high-bid bracket.

Rubber Sees Better Trend - Oct 15, 2008

Kottayam: Domestic rubber displayed a better trend on Oct 14. Sheet rubber RSS 4 increased to Rs 86 from Rs 81 a kg on Oct 13. Rubber prices have plumped to much lower levels. Spot prices were (Rs/kg): RSS-4: 86 (81); RSS-5: 82 (79); ungraded: 78 (74); ISNR 20: 81 (78) and latex 60 per cent: 70 (70).

Chilli Futures Touches Upper Circuit - Oct 15, 2008

Mumbai: Chilli futures remained to gain strength touching the upper circuit for the second consecutive day. Strong demand in the Guntur spot market on Oct 14 pushed up chilli futures by 3 per cent to Rs 5,673 a quintal. Maize touched the upper circuit of 2.98 per cent at Rs 846 a quintal on good purchasing interest at lower levels besides rise in spot prices amidst thin arrivals.

Turmeric increased 1.98 per cent to Rs 3,562 a quintal on the back of short covering after recent down side movement. Soybean increased 1.06 per cent to Rs 1,667 a quintal on short covering. Jeera and pepper declined slightly by 0.21 per cent and 0.17 per cent to Rs 10,251 a quintal and Rs 12,940 a quintal. On MCX, mentha oil and crude palm oil increased 2.57 per cent and 0.58 per cent to Rs 554 a kg and Rs 311/10 kg, respectively. Cardamom declined 1.06 per cent to Rs 653 a kg on sluggish demand for the produce.

Soymeal Exports Up This Year - Oct 14, 2008

The country's soymeal exports have increased manifolds in value terms touching a record Rs 7,332 crore during 2007-08 season ending September.The country had exported soymeal worth Rs 3,619 crore during 2006-07 season (October-September).The average realisation of soymeal was Rs 15,000 a tonne from export.The average exports price increased to $485 a tonne in August 2008 as compared with $350 a tonne at the start of the season in October last year.In terms of quantity, exports have surged by 39 per cent at record 4.88 million tonnes in 2007-08 season against 3.53 million tonnes in the previous year.

Agrawal noted that the soymeal exports achieved a record in both quantity and value terms.The data does not include exports made to Pakistan, Nepal and Bangladesh through rail and road, which is expected to be about 350,000 tonnes.During the last season, Malaysia, Japan, China, Vietnam and Thailand were the major destinations for Indian soymeal.The shipments to Malaysia rose by more than two-folds at 1.22 lakh tonnes in 2007-08 compared with 49,705 tonnes in the previous year. The exports to Japan increased by 72 per cent to 8.57 lakh tonnes from 4.97 lakh tonnes while that to China by 54 per cent at 2.05 lakh tonnes.Vietnam imported 1.24 million tonnes during 2007-08 against 8.92 lakh tonnes in 2006-07. Exports to Thailand advanced to 4.26 lakh tonnes from 3.07 lakh tonnes.

Potato Farmers Switch Over To Garlic Cultivation - Oct 14, 2008

Thousands of local potato farmers switching over to garlic cultivation in the hope that they could recover the losses they incurred from the low potato prices. Garlic prices have fallen by almost 90 per cent as compared to last year. Usually sold at Rs 5,000-7,000 a quintal, the crop is now hardly fetching Rs 700, leaving no option for the peasants but to migrate to cities or commit suicide. Garlic, a dietary supplement, is used in tablets and capsules and in fluid extracts. Today, garlic is one of the best-selling botanical remedies in the US and Europe and various medicine manufacturers export it to the West.

Last year, garlic fetched good profits, so peasants cultivated large areas under garlic. The crop registered good harvest this year due to favourable weather conditions, but the abysmal market rates have spoilt all the hopes nurtured. The wholesalers and middlemen are not willing to procure the harvest even for Rs 400 a quintal, forcing a loss of at least Rs 600 a quintal on the overdrawn peasants.

Rubber Rates Remained To Rule Weak - Oct 14, 2008

Kottayam: Rubber rates remained to rule weak on Oct 13. RSS 4 declined to Rs 81 from Rs 83 a kg on purchaser resistance. The domestic market seemed blind folded as the trend setting Tokyo Commodity Exchange (TOCOM) remained ended on account of Health and Sports Day.

The falling trends in oil prices triggered by global recession and declining international markets contributed the steep decline from Rs 142 a kg to Rs 81. Meanwhile in the international front, RSS 3 (spot) plunged to Rs 97.10 from Rs 103.59 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 81 (83); RSS-5: 79 (80); ungraded: 74 (75); ISNR 20: 78 (79) and latex 60 per cent: 70 (70).

Rubber Futures On Tokyo Commodity Exchange Plunged - Oct 13, 2008

Kottayam: Domestic rubber prices made yet another sharp decline on Oct 10. The sentiments were extremely bearish and sheet rubber RSS 4 fell to Rs 84 from Rs 90 a kg on the previous trading session. The average price of natural rubber during 2007-08 was Rs 90.70 as against Rs.92.30 during 2006 -2007.

Rubber futures on the Tokyo Commodity Exchange plunged catalysed by heavy long liquidation and fresh selling following declines in oil futures and yen's rise against dollar. RSS 3 (spot) declined to Rs 103.59 (106.69) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 84 (90); RSS-5: 80 (88); ungraded: 75 (86); ISNR 20: 79 (85) and latex 60 per cent: 70 (73).

Strong Fundamentals Shore Up Pepper Futures - Oct 13, 2008

Kochi: The agitation in the capital markets all over the world failed to pressure the pepper futures market because of strong fundamentals of pepper like gold. The market increased on Oct 10. October contract increased by Rs 231 a quintal to Rs 12,935. November an December increased by Rs 171 and Rs 141 respectively to Rs 13,000 and Rs 13,170 a quintal. Total turnover on NCDEX increased by 969 tonnes to 7,440 tonnes. Net open position for October declined by 574 tonnes to 4,778 tonnes. November and December positions increased by 133 tonnes and 442 tonnes to 7,458 tonnes and 3,903 tonnes respectively. The investors who were purchasing spot and selling futures earlier are now on the reverse mode liquidating spot and buying futures.

The purchasers said to have adopted a wait and watch approach anticipating that the prices will decline following the stock market crash world over. Indian parity on Oct 11 was at $2,975-3,000 a tonne (c&f) for Europe and $3,100 a tonne (c&f) for the US. Sharp decline in the value of rupee against the dollar has made imports of pepper costly.

Coonoor Tea Trade Association - Oct 13, 2008

Coonoor: Producers who auctioned their teas via the 39 auctions of the Coonoor Tea Trade Association have got Rs 119.10 crore more in the nine months of this calendar, compared to last year. In nine months, the volume sold increased to 3.83 crore kg from 2.58 crore kg. On an average, every kilo got Rs 61.26, against Rs 44.78. Consequently, the turnover increased to Rs 234.63 crore from Rs 115.53 crore. At this high price, a higher volume of 3.58 crore kg were sold (2.37 crore kg). Orthodox tea prices averaged Rs 64.52 a kg (Rs 55.70).

Coonoor Auction Sees Quality Teas Fetch Premium - Oct 10, 2008

Coonoor: Despite rates falling and teas getting withdrawn from Sale No. 40 of the Coonoor Tea Trade Association (CTTA) auction last weekend, quality invoices got premium prices, an analysis of the buying pattern reveals. The Quotations held by brokers shows bids ranging from Rs 68-73 a kg for plain leaf grades and Rs 90-96 for the brighter liquoring sorts. They ranged Rs 73-76 a kg for plain dust grades and Rs 100-118 for brighter liquoring sorts. As many as 25 marks of CTC teas of bought-leaf factories remained in Rs 100 price-band.

Five marks of Darmona Estate, auctioned by J Thomas and Co, sold well above Rs 100 a kg in the CTC bought-leaf segment. Two of its dusts grades, SRD and SFD, got the week's highest price of Rs 119 a kg each. Three were dust grades - BOPF (Rs 117), BOP (Rs 111) and BP (Rs 110). Likewise, five marks of Homedale Tea Factory, auctioned by Global Tea Brokers, entered Rs 100 price-band.

Tea Sector, Which A Whole Was Lurching - Oct 8, 2008

Kochi: The tea sector, which as a whole was lurching under a crisis for the past several years, has now began picking up with the steadily increasing demand both from domestic and foreign market, Mr M.K. Ajit, Chairman of Tea Buyers Association, Kochi, has said. Addressing the 35th annual general meeting of the association, he said several other competing countries were also strengthening their foothold in the world market. It is, therefore, highly essential for tea gardens to increase productivity with a special thrust on the quality.

Pepper Futures Market Bounced Back Touched Futures - Oct 8, 2008

Kochi: The pepper futures market on Oct 6 bounced back and touched the upper circuit on good purchasing support from investors. October contract increased by Rs 386 to Rs 12,980 a quintal, but still below the spot price for MG 1 of Rs 13,500 a quintal. November and December contracts increased by Rs 413 and Rs 376 a quintal respectively to Rs 13,175 and Rs 13,400, both below the spot price. Total turnover on NCDEX fell by 942 tonnes to 7,581 tonnes. Total open interest fell by 218 tonnes to 17,817 tonnes.

Spot prices fell by Rs 100 a quintal on selling pressure to close at Rs 12,900 (un-garbled) and Rs 13,500 (MG 1) on Oct 7. Vietnam was offering Asta grade according to US brokers at $3,275 a tonne (c&f) while Ecuador at $3,100 a tonne (c&f). Indian parity on OCt 7 was $3,025 a tonne (c&f) Europe and $3,125 a tonne (c&f) US.

Basmati Rates Rule Lower, Seen Declining More - Oct 8, 2008

New Delhi: Farmers who had excitedly planted and extended acreages under basmati rice this year have to patch up themselves to lower realisations. Prices of Pusa Basmati-1 paddy the harvesting of which just about has began are currently averaging around Rs 1,800 a quintal in most mandis of North India. There is a similar fall being reported in other aromatic long-grain varieties not technically basmati, such as Sharbati and Sugandha.

According to a field survey-cum-satellite data-based study done for the Agricultural Products Export Development Authority (APEDA), nearly 9.51 lakh hectares (lh) area has sown under basmati this year, which comprises 3.16 lh under traditional cultivars, 5.55 lh under Pusa Basmati-1 and 0.80 lh under Super.

Indian Mangoes Likely Australia Next Summer - Oct 7, 2008

Indian mangoes are likely to enter the Austrlian shores next summer of both the nations come to a pact on the regulations for import Down Under.According to Mr David Ingham, Counsellor (Agriculture), Austalian High Commission, the Department of Agriculture here is developing a document on the pact to export mangoes.

Once the document is developed, then Australia will have a look at it and advise changes, if any. On August 18, Australia's 'Final Import Risk Analysis Report for Fresh Mango Fruit from India' recommended that Indian mangoes be allowed foray subject to certain quarantine conditions. These conditions are hoped to finalised after the documentation.

Sheet Rubber Extremely Weak Previous - Oct 7, 2008

Kottayam: Rubber prices made heavy losses on Oct 06. Sheet rubber RSS 4 ended extremely weak at Rs 100 a kg from Rs 106 a kg on the previous weekend. Though the decline is good for the manufacturing industries, it is detrimental to the interests of the rubber plantation industry, which supports about 10 lakh small and marginal farmers in India, The grade (spot) fell to Rs 117.18 (120.05) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 100 (106); RSS-5: 97 (104.50); ungraded: 95 (100); ISNR 20: 96 (102.50) and latex 60 per cent: 74 (76).

Baldota Group Establishing Steel Unit - Oct 7, 2008

Bangalore: The Baldota Group is establishing a new Rs 4,700-crore steel plant, which will mostly make up products for passenger cars as well as auto parts producers based out of southern and western India. The group company, Aaress Iron & Steel Ltd (AISL), which is setting up the project, hopes to finish the first phase consisting of 1.2 million tonnes (mt) capacity by the end of 2010.

The steel plant is being established in Koppal in northern Karnataka. In the second phase, 2.5-mt capacity will be added with an infusion of Rs 8,500 crore. The company will also establish two power plants of 35 MW each near the steel plant. AISL mulls to begin work on setting up the second phase of the steel plant by 2009.

India Is Likely To Produce Million Tones - Oct 6, 2008

India is likely to produce 2.8 million tones(MT) extra grain in 2008-09 provided farmers increase the area by a million hectare. India has harvested a record 78.4 million tones (MT) wheat last year. The average wheat productivity at national level is about 2.8 tonnes per hectare as per the fourth advance estimates for 2007-08.Last week, the Agriculture Secretary had said the government targets to increase the wheat acreage by one million hectares in 2008-09. The government has set a wheat production target at 78.5 MT, up by 100,000 tonnes from the previous year.

Turmeric Futures To Continue Pessimistic - Oct 6, 2008

Mumbai: The downtrend in turmeric futures in NCDEX is hoped to continue in the short term on weak sentiment in the spot market besides a slowdown in demand from overseas market. Markets took a cue from dismal production predictions due to scanty rainfall in the initial crop season. Area under turmeric cultivation in the kharif season is hoped to be about 1.69 lakh hectares against 1.64 lakh hectares registered in the same period last year. In Andhra Pradesh, most of the farmers shifted from turmeric to soyabean as it is a short duration crop and less labour-intensive. Moreover, domestic purchasers have been staying away from the market in anticipation of further fall in prices.

The decline in rates was further supported by favourable weather conditions in Andhra Pradesh and Maharashtra, besides a slow down in domestic and overseas demand. In Nizamabad markets, turmeric prices reached a high of Rs 4,600 a quintal, but came down to Rs 3,900 level on Oct 3.

Rubber Witness Steady Trend - Oct 6, 2008

Kottayam: Rubber rates finished unaltered on Oct 4. RSS 4 ended flat at Rs 106 a kg as on Oct 2. The immediate future of rubber could be decided only on Oct 6 when the Tokyo Commodity Exchange reopens after the weekend holidays. Spot rates were (Rs/kg): RSS-4: 106 (106); RSS-5: 104.50 (104.50); ungraded: 100 (100); ISNR 20: 102.50 (102.50) and latex 60 per cent: 76 (76).

Spot Rubber Prices Declined Deep - Oct 4, 2008

Kottayam: Spot rubber prices declined deep in to the minus territory on Oct 3. Sheet rubber RSS 4 fell to Rs 106 from Rs 112 a kg on Oct 1. The grade fell to Rs 120.05 (124.71) a kg at Bangkok.Spot rates were (Rs/kg): RSS-4: 106 (112); RSS-5: 104.50 (110); ungraded: 100 (105); ISNR 20: 102.50 (109) and latex 60 per cent: 76 (76).

Purchasers Remaining Subdued, Prices Declined - Oct 3, 2008

Kochi: With demand from blenders, exporters and inter-State purchasers remaining subdued, prices declined at the Kochi tea auction. There was 8,03,000 kg of dust tea on offer at the auction. Prices of high priced CTC dust varieties declined sharply by Rs 10-18, mediums and below mediums were Rs 5-10 lower and orthodox high grown prices declined by Rs 5-8. Medium orthodox continued barely steady in a market where blenders and other traders operated with less strength. Best CTC dust quoted Rs 95-100, medium CTC was at Rs 82-95 and below medium ranged at Rs 75-88.

Japanese Rubber Futures Made A Firm Began - Oct 3, 2008

Kottayam: Spot rubber ended unchanged on Oct 1. Sheet rubber RSS 4 ended flat at Rs 112 kg as on Sept 30. The Japanese rubber futures made a firm began followed by a bounce back in oil futures. The prices increased further on short covering with the nearby contracts leading the way up. Spot rates were (Rs/kg): RSS-4: 112 (112); RSS-5: 110 (110); ungraded: 105 (105); ISNR 20: 109 (109) and latex 60 per cent: 76 (76).

Tea Trader Demand On Extension - Oct 3, 2008

Coimbatore: The Tamil Nadu Minister for Commercial Taxes, Mr S.N.M. Ubayadullah, assured the members of the tea trade that the Government will examine the sector's demand on extension of one per cent VAT levied at first point of sale to all teas sold in the auctions. No auction centre in the country except Tamil Nadu levied tax on sale of teas meant for exports and that such levy made exports uncompetitive. Further, the one per cent VAT levied at the first point of sale was constrained only for teas sold in auction and direct first sale by the bought leaf factories and Indcoserve, leaving the estate tea factories and TANTEA outside the ambit of such cover.

Yet the offer volumes during the first seven months of 2008 at Coimbatore auction centre went up by 23 per cent to 17.08 million kg against 13.87 million kg during the corresponding months of the previous year.

Soyabean Processors Association Of India - Oct 1, 2008

Chennai: Soyabean output is headed for a record 108.17 lakh tonnes (lt) this year against 94.75 lt last year, according to the Soyabean Processors Association of India (SOPA) projections. SOPA's projections are based on 8 per cent increase in the area under soyabean. The total area under soyabean in all States has been pegged at 96.24 lakh hectare (lh) till September 24 compared with 88.49 lh last year.

The acreage in Madhya Pradesh, which accounts for over half of the total soyabean crop in the country, was at 51.43 lh with output being estimated at 57.75 lt against 48.79 lh amd 49.8 lt production, with increase in area witnessed in Ujjain, Indore, Bhopal, Guna, Shivpuri and Ashoknagar districts. The acreage in Maharashtra, No. 2 soyabean producing State, has reached 30.68 lh and output is seen at 36.47 lt, against 32.37 lt grown on 26.51lh last year.

Sharp Falls In Global Futures Mainly - Oct 1, 2008

Kottayam: Rubber prices plunged on Sept 30. Sharp falls in global futures mainly TOCOM kept the domestic market under pressure during the day. RSS 4 declined to Rs 112 from Rs 121 a kg as there were no purchasing orders from any leading consuming industries even at lower levels. RSS 3 spot weakened to Rs 127.05 (129.07) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 112 (121); RSS-5: 110 (118); ungraded: 105 (114); ISNR 20: 109 (116) and latex 60 per cent: 76 (77).