Coonoor Tea Price Witnesses High Trend

Coonoor: Prices increased a tad at the Sale No: 17 of the auctions held by the Coonoor Tea Trade Association (CTTA) here on April 27, as the demand was fair enough to absorb the low volume of improved quality teas on offer. Only 7.17 lakh kg were offered for sale. But, the prices rose only 50 paise to one rupee a kg as the purchasers chose to adjust the 4 per cent VAT against their bids. On the export front, CIS shippers chose some bolder grades for Rs 44-45 a kg. Exporters to Pakistan bought some select lines teas for around Rs 43. JV Gokal competed for the whole leaf orthodox grades. JFK bought some medium brokens and fannings.
Plainer CTC dusts were barely steady. Lesser high grown orthodox dusts were neglected. Fibrous sorts eased up to Rs 3 a kg. Among the CTC teas from bought-leaf factories, Highfield Estate Special and Homedale Estate got the highest price of Rs 80 a kg. Darmona Estate got Rs 79, Dhavala Estate Rs 78, Professor Rs 77, Vigneshwar Estate and Selva Ganapathy Estate Supreme got Rs 76. Among the orthodox teas from corporate sector, Curzon got the highest price of Rs 136 a kg, followed by Kodanaad at Rs 134. Corsley got Rs 128, Glendale Rs 127, Prammas Rs 125, Tiger Hill and Chamraj Rs 124, Sutton Rs 121, Parkside Rs 117, Erinkadu Rs 114 and Mailoor Rs 110. Quotations held by the brokers indicated bids ranging from Rs 39-40 a kg for the plain leaf grades and Rs 58-64 for the brighter liquoring grades.

Less Response For Special Purpose Tea Fund

Kolkata: The response of tea companies to the Special Purpose Tea Fund (SPTF) this year will be less than hope. As a result, the demand for loan as well as subsidy will be at the most 50 per cent of the estimates, if the current trend is any indication. The current year's loan requirement under SPTF has been pegged at Rs 167.56 crore and the subsidy requirement at Rs 90 crore. The estimates were prepared on the basis of the assumption that during the year a total of 4,095.38 hectares would be brought under replantation, another 2,363.77 hectares under replacement, 6,036.8 hectares for uprooting and 1,136.17 hectares for rejuvenation, totalling 13,632.12 hectares.
Although 300 tea companies covering more than 500 gardens have shown interest in SPTF, the number of applications received so far has been insignificant. The majority of the tea companies showing interest have their activities concentrated in Assam. There are 147 such companies with a total of 300 gardens, followed by West Bengal 100 companies with 129 gardens, Tamil Nadu 20 companies with 23 gardens, Kerala 16 companies with 37 gardens, Tripura 13 companies with 16 gardens and Karnataka two companies with as many gardens.

Even those who did uprooting in 2005 and are now planning replantation will find it hard to obtain assistance under SPTF unless letters of consent accompanies their applications from their respective bankers. Tea Board sources, however, indicate that the cases of those tea companies that had earlier applied for subsidy under a separate scheme, namely, Tea Board's ongoing subsidy scheme, will also be considered for assistance under SPTF.

Vanilla Rates Likely To Gain 10Pc This Year

Kochi: Prospects of a fall in the out put of vanilla beans in the world's largest producer, Madagascar, following six devastating cyclones that tore the Indian Ocean Island during the past three months, could push up its prices this year. However, market sources estimated the loss ranging from 20 to 40 per cent. The world demand for the year is estimated at between 1,500 tonnes and 1,600 tonnes while the total global output is estimated at 2,000 tonnes. The world demand has failed to pick up as anticipated, as the end-users who had switched over to synthetic vanillin when the natural vanilla prices increased to $450-500 a kg about four years ago, have not yet reverted to the natural product.
As the prices have remained below remunerative levels for a long time, some farmers have even decided to remove the plants while others are just pruning them and leaving it without carrying out the pollination. The Indian production is estimated at around 200 tonnes of cured bean. The only solution now to help the Indian growers is to increase the use of natural vanillin in the country. At present, consumption of synthetic vanillin in the country is estimated at round 500 tonne a year and if part of it is substituted by natural vanillin the scope for vanilla cultivation in the country, mainly in the southern states, is enormous. In 2005-06 it has come down to an estimated 1,000 tonne as against an estimated production of 2,300 tonne.

Kochi Tea Auction Witnesses Steady Trend

Kochi: Good general demand lifted up the prices of several dust varieties at the Kochi tea auction. The market opened at last week's levels and medium CTC varieties eased during the course of auction. Best CTC varieties were quoted at Rs 66-77, medium CTC at Rs 57-63 and below medium ranged between Rs 48 and Rs 52. High-grown BOPD was quoted at Rs 75-116, while medium BOPD and secondaries were not quoted. Whole leaf grades remained firm, while medium orthodox broken and whole leaf grades remained firm to dearer. CTC varieties were barely steady. Medium orthodox saw demand from exporters to CIS countries while exporters to West Asia remained selective. CTC varieties saw better demand from exporters. Best Nilgiri varieties were quoted at Rs 75-85, medium orthodox was at Rs 55-80 and plain orthodox ranged between Rs 45 and Rs 52. Best CTC leaf varieties fetched Rs 52-57, while medium CTC ranged between Rs 45 and Rs 48. Kodanad BOPD fetched the top price in the dust segment at Rs 116.

CACP Recommends Huge Increase In Pulses MSP

New Delhi: Apart from an all-time-high increase of Rs 65 per quintal for paddy, the Commission for Agricultural Costs and Prices (CACP) has suggested big jumps in the minimum support price (MSP) of kharif pulses. For the ensuing 2007-08 crop, the CACP has recommended an MSP of Rs 1,550 per quintal for tur (arhar or pigeonpea) and Rs 1,700 per quintal for mung (green gram), against the corresponding Rs 1,410 and Rs 1,520 per quintal levels in 2006-07. The MSP increases suggested for oilseeds are more moderate: Rs 1,020-1,050 per quintal for yellow soyabean and Rs 1,520-1,550 per quintal for groundnut-in-shell.

Tea Growers To Get Rs 74 Lakh Assistance

New Delhi: The Commerce Ministry has declared that 14,928 tea growers will get financial assistance of Rs 74.64 lakh from the Price Stabilisation Fund (PSF) Trust for 2007-08 on the basis of the Price Spectrum Band 2006. This decision follows the announcement of the tea crop for 2006 as a normal year, as per the calculations of the Price Spectrum Band on the basis of the seven year's moving average of international price for the commodity, the annual average domestic price of the beverage being Rs 63.62 per kg.

Pulses Importers Association Rejects Subsidy

Mumbai: The Union Government's reported decision to sanction a 15 per cent subsidy to parastatals and public sector trading companies for importing large volumes of pulses is an aberration that is not justified and needs an urgent review. Conceded that the country is chronically short of pulses, in addition to several other commodities; supplies have to be augmented through imports. Pulses imports are absolutely free - under open general license and no customs duty. In its anxiety to be seen as protecting consumer interest and controlling inflation, the Centre has unwittingly sent out a strong bullish signal to the world pulses market about intention to import as much as 15 lakh tonnes through public sector agencies.
The Pulses Importers Association has objected to grant of subsidy and demanded that it be extended to the private trade also. In a free trade regime and in an environment of economic liberalisation, there is no reason to treat Government parastatals differently. Corporates such as STC, MMTC and PEC are well-established trading houses and must do business on merits. Far from advancing competitiveness and efficiency, the subsidy regime will mean supporting inefficient traders over others. Despite a free trade regime, open market rates have remained steady for various reasons including omissions and commissions of policymakers for long years. Pulses poor man's protein did not receive the kind of policy support that was bestowed on fine cereals.

Utter indifference to raising domestic out put has resulted in shortage and dependence on imports. Opening up the market without corresponding and vigorous efforts to create conditions for sustained growth of farm production is sure to result in demand-supply mismatch and unsettled market conditions that may hurt the interests of stakeholders. For instance, public sector companies can begin to undertake procurement of pulses at market rates. Government companies can play a role in this as part of corporate social responsibility.

Pulses Mart Faces Bearish Phase

Due to tepid demand, better arrivals and appreciating rupee, the pulses market in the country is going through a bearish phase. And the trend is expected to continue for another fortnight. Chana has been hit the hardest. Commodity analysts said unless the chana market recovered, improvement in tur, urad, and moong (which also weakened in the last two weeks) market conditions was highly unlikely. In Delhi, the spot prices reached a level of Rs 2,225 a quintal, a fall of over 9 per cent from the previous day. Three weeks ago, the prices were hovering above Rs 2,450 a quintal level. In Latur, the rates slumped to Rs 2,275 a quintal, a drop of Rs 75 a quintal in the last 7-10 days. According to market reports, chana output from Rajasthan would be much more than the estimated 6 lakh tonnes.Bikaner, a delivery centre for chana in Rajasthan, witnessed arrival of close to 30,000 bags on April 25. A majority of the state's chana crop is heading towards Delhi. On April 25, around 700 tonnes reached Delhi mandis. Sources in the mandis there said a further dip of Rs 25-50 a quintal was on the cards. Analysts, however, believed the overall scenario was bullish, and that the total country-wide output would be 50 lakh tonnes instead of the earlier estimated 55 lakh tonnes.

Rubber Witnesses Mixed Tend

Kottayam: Physical rubber prices saw a mixed trend on April 25. Global rubber rates were bearish and hence, sheet rubber closed slightly down at Rs 86.50 against Rs 86.75 and Rs 87 a kg respectively at Kottayam and Kochi. The rubber futures were visibly weak in leading commodity exchanges. The May contract down to Rs 87.70 from Rs 88.80 a kg on MCX. On NMCE, the near month May contract decline to Rs 86.81 (87.84), June to Rs 90.10 (90.89), July contract to Rs 92.20 (93.05) and August to Rs 92 (92.68) per kg for RSS 4. RSS 3 spot slipped further to Rs 96.34 from Rs 97.09 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 86.50 (86.75); RSS-5: 85.50 (85.50); ungraded: 84.50 (84.75); ISNR 20: 85.25 (85.25) and latex 60 per cent: 63.65 (63.65).

Maize Futures Face Bearish On Arrivals From Bihar, AP

Mumbai: Maize futures are facing a bearish trend on the back of the rabi crop from Bihar and Andhra Pradesh hitting the market. However, in the spot market the prices are stable and moving in a range of Rs 715 to Rs 725 a quintal. The contract for May delivery fell by about 6 per cent to Rs 741 a quintal today from Rs 790 a quintal a fortnight ago. According to commodity analysts, the futures prices may go down further. The country expects around 2.3 million tonnes of the rabi maize. Despite this, however, there will be an overall shortage of 2 million tonnes. The rabi crop arrival will continue till mid-May. Bihar's crop that reached Delhi is reported to have higher moisture content. According to global standards, moisture content should be 14 per cent, but the crop from Bihar has a moisture level of 25 per cent. The spot rate, on April 24, was around Rs 720 a quintal in mandis. In the meantime, despite the rupee appreciation, maize imports have not proved viable so far. Contrary to reports suggesting a global scarcity of maize and a significant chunk going for ethanol production, the US may have enough to export.