Kolkata: Last week, CTC teas once again saw strong demand at firm to occasionally dearer rates, particularly for dust teas, in North Indian auction centres at Kolkata, Guwahati and Siliguri. The major blender was active while there was fair support from Tata Tea and other packeteers. Darjeeling whole leaf and brokens sold readily at lower levels while fannings sold irregularly around last. In the orthodox sale, few tippy teas on offer sold at around last levels while the remainder tended firm and at times dearer. North India purchasers were selective while local purchasers operated on the fannings.
Showing posts with label Kolkata. Show all posts
Showing posts with label Kolkata. Show all posts
Monday, August 18, 2008
Monday, August 11, 2008
India Witnessed The Export Of 87.4 Million Kg Of Tea - Aug 11 , 2008
Kolkata: Between January and June, India witnessed the export of 87.4 million kg (mkg) of tea (44.7 mkg North Indian and 42.7 mkg South Indian varieties), rise by 10.4 mkg over the same period of 2007, when exports were to the tune of 77 mkg, comprising 38.2 mkg of North Indian and 38.8 mkg of South Indian varieties, according to statistics released by the Indian Tea Association (ITA).
The earnings from exports in first six months, at Rs 883.32 crore, showed an increase of Rs 116.57 crore over Rs 766.75 crore earned in the same period of last year.
Between April and June (first quarter of the current fiscal), tea exports were 36.5 mkg (14.4 mkg of North India and 22.1 mkg of South Indian varieties) compared with 32.6 mkg (15.3 mkg of North Indian and 17.3 mkg of South Indian varieties), or up by 3.9 mkg. Between January and May, ITA figures suggest, the country imported 6.56 mkg of tea worth Rs 46.74 crore compared with 4.89 mkg worth Rs 36.72 crore in the same period of 2007.
Nepal supplied 2.12 mkg (1.27 mkg in the same period last year), Indonesia 1.44 mkg (0.88 mkg), Kenya 1.24 mkg (1.11 mkg), China 0.36 mkg (0.28 mkg) and Argentina 0.35 mkg (0.37 mkg).
The earnings from exports in first six months, at Rs 883.32 crore, showed an increase of Rs 116.57 crore over Rs 766.75 crore earned in the same period of last year.
Between April and June (first quarter of the current fiscal), tea exports were 36.5 mkg (14.4 mkg of North India and 22.1 mkg of South Indian varieties) compared with 32.6 mkg (15.3 mkg of North Indian and 17.3 mkg of South Indian varieties), or up by 3.9 mkg. Between January and May, ITA figures suggest, the country imported 6.56 mkg of tea worth Rs 46.74 crore compared with 4.89 mkg worth Rs 36.72 crore in the same period of 2007.
Nepal supplied 2.12 mkg (1.27 mkg in the same period last year), Indonesia 1.44 mkg (0.88 mkg), Kenya 1.24 mkg (1.11 mkg), China 0.36 mkg (0.28 mkg) and Argentina 0.35 mkg (0.37 mkg).
Monday, July 21, 2008
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.
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.
Saturday, July 12, 2008
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.
Wednesday, March 26, 2008
Tobacco Stocks Still Weak On Budget Blues
Kolkata: Cigarette stocks remarkably did not participate in the general upward movement on Tuesday as the tax blow continued to drag them downwards.
According to analysts, apart from the Budget blues on non-filtered cigarettes, the introduction of pictorial warning, which may come up during the first quarter of 2008-09, have raised apprehension of substantial fall in revenue for the manufacturers.
Ram Patnaik, an analyst at Religare, felt that passing on the huge tax burden for the non-filtered cigarettes to the consumers may not be possible as the segment is considered highly price sensitive and consumer behaviour is considered to be rigid.
According to industry sources, ITC may opt for gradual phase-out of the segment altogether and two other players in the segment — VST and GTC — may not have much option but to reduce the production of non-filtered smoking sticks drastically.
Introduction of filtered variety of the old non-filtered brands is unlikely to shift smokers’ loyalty, said an industry insider. “Retaining market share at the low price segments would be a difficult proposition in view of the competition from bidi and ‘unauthorised’ cigarette manufacturers,” said a cigarette marketing personnel.
Declining Acceptance
ITC, with a large basket of cigarette brands, may withstand the pressure better that others, which rely more on non-filtered verities.
Two non-filtered brands contribute roughly 30 per cent of ITC’s cigarettes volumes, while in case of GTC and VST, it is estimated to be more than 50 per cent.
Current lobbying by the manufacturers, with the Finance Ministry, might be described as a shot in the dark, an analyst with a large brokerage said. Interestingly, many of the brokerages have, of late, stopped tracking tobacco stocks, except for ITC, which is considered as an FMCG player.
“Increasing “sin” tax, gradually declining social acceptance, health and ethical issues are forcing brokerages to ignore the sector,” the analyst said. The proposed statutory pictorial warnings, instead of verbal currently in vogue, may further alienate smokers and investors from the sector.
The counters such as GTC, VST and ITC have fallen sharply in the past one month, after the new tax proposals in the Budget for 2008-09. GTC has lost 49 per cent, VST 23.5 per cent, ITC 5.37 per cent and Godfrey Phillips 1.5 per cent, much in order on dependence on the non-filtered sticks. Barring GTC, which moved up by 2.34 per cent, three others finished flat on Tuesday.
According to analysts, apart from the Budget blues on non-filtered cigarettes, the introduction of pictorial warning, which may come up during the first quarter of 2008-09, have raised apprehension of substantial fall in revenue for the manufacturers.
Ram Patnaik, an analyst at Religare, felt that passing on the huge tax burden for the non-filtered cigarettes to the consumers may not be possible as the segment is considered highly price sensitive and consumer behaviour is considered to be rigid.
According to industry sources, ITC may opt for gradual phase-out of the segment altogether and two other players in the segment — VST and GTC — may not have much option but to reduce the production of non-filtered smoking sticks drastically.
Introduction of filtered variety of the old non-filtered brands is unlikely to shift smokers’ loyalty, said an industry insider. “Retaining market share at the low price segments would be a difficult proposition in view of the competition from bidi and ‘unauthorised’ cigarette manufacturers,” said a cigarette marketing personnel.
Declining Acceptance
ITC, with a large basket of cigarette brands, may withstand the pressure better that others, which rely more on non-filtered verities.
Two non-filtered brands contribute roughly 30 per cent of ITC’s cigarettes volumes, while in case of GTC and VST, it is estimated to be more than 50 per cent.
Current lobbying by the manufacturers, with the Finance Ministry, might be described as a shot in the dark, an analyst with a large brokerage said. Interestingly, many of the brokerages have, of late, stopped tracking tobacco stocks, except for ITC, which is considered as an FMCG player.
“Increasing “sin” tax, gradually declining social acceptance, health and ethical issues are forcing brokerages to ignore the sector,” the analyst said. The proposed statutory pictorial warnings, instead of verbal currently in vogue, may further alienate smokers and investors from the sector.
The counters such as GTC, VST and ITC have fallen sharply in the past one month, after the new tax proposals in the Budget for 2008-09. GTC has lost 49 per cent, VST 23.5 per cent, ITC 5.37 per cent and Godfrey Phillips 1.5 per cent, much in order on dependence on the non-filtered sticks. Barring GTC, which moved up by 2.34 per cent, three others finished flat on Tuesday.
Thursday, March 13, 2008
Tea E-Auction Launch ‘Within This Year’
Kolkata: Scope of the futures market in tea was discussed at a high-level meeting held at the Tea Board office here on Wednesday. Basudeb Banerjee, Chairman of Tea Board; the Deputy Chairman, Roshni Sen; and member of the Forward Markets Commission, Rajeev Agarwal, were present.
Representatives of the National Commodity & Derivatives Exchange, Multi Commodity Exchange of India Ltd, Indian Tea Association, Tea Association of India, Calcutta Tea Traders Association and Indian Merchant Tea Exporters’ Federation also attended the meeting.
Later talking to Business Line, Agarwal said the benefits of having the futures market in tea were discussed at the meeting. “The exercise was on sensitising the tea industry about the futures market and explaining the possibility of launching futures contracts in tea,” Agarwal said. “The futures market can be of help to the tea industry in price discovery, i.e., the discovery of the right price, and in price risk management.”
However, the representatives of the tea and trade industry explained the difficulties in designing a contract for representative varieties of tea because of wide variations in grades. Also, it was pointed out, the production of tea being dependent on the vagaries of nature, it might be difficult to guarantee the promised quality and quantity at the time of delivery.
The possibility of designing a tea index was also discussed, Agarwal said, pointing out that the index should cover certain specific varieties of tea which would reflect the price movement and also provide opportunities for hedging to the stakeholders.
The Tea Board Chairman felt that the commissioning of e-auction in tea would expedite the process of futures trading in tea. The e-auction, he said, would be launched within this year.
Representatives of the National Commodity & Derivatives Exchange, Multi Commodity Exchange of India Ltd, Indian Tea Association, Tea Association of India, Calcutta Tea Traders Association and Indian Merchant Tea Exporters’ Federation also attended the meeting.
Later talking to Business Line, Agarwal said the benefits of having the futures market in tea were discussed at the meeting. “The exercise was on sensitising the tea industry about the futures market and explaining the possibility of launching futures contracts in tea,” Agarwal said. “The futures market can be of help to the tea industry in price discovery, i.e., the discovery of the right price, and in price risk management.”
However, the representatives of the tea and trade industry explained the difficulties in designing a contract for representative varieties of tea because of wide variations in grades. Also, it was pointed out, the production of tea being dependent on the vagaries of nature, it might be difficult to guarantee the promised quality and quantity at the time of delivery.
The possibility of designing a tea index was also discussed, Agarwal said, pointing out that the index should cover certain specific varieties of tea which would reflect the price movement and also provide opportunities for hedging to the stakeholders.
The Tea Board Chairman felt that the commissioning of e-auction in tea would expedite the process of futures trading in tea. The e-auction, he said, would be launched within this year.
Tuesday, March 11, 2008
Good Demand For CTC In Kolkata Tea Sale
Kolkata: Last week, the CTC markets at North Indian auctions witnessed good demand with selected blacker and liquoring teas selling at fully firm to dearer rates, according to J Thomas & Company Pvt Limited, the tea auctioneers. The orthodox varieties, largely of end-season quality, eased irregularly in value, with good support from CIS and the West Asia.
Better Darjeeling varieties saw good inquiry at slightly lower levels. Liquoring brokens appreciated following good local support.
A few new season CTC received attractive prices during the week, with Assam selling up to Rs 221 per kg and Dooars up to Rs 201 per kg.
Assam’s tea growing districts received fair rainfall recently, while North Bengal remained rather dry.
Sri Lankan teas at Colombo saw strong markets with low grown grades showing remarkable price improvement. Kenyan teas at Mombasa saw good demand but prices were irregular.
Better Darjeeling varieties saw good inquiry at slightly lower levels. Liquoring brokens appreciated following good local support.
A few new season CTC received attractive prices during the week, with Assam selling up to Rs 221 per kg and Dooars up to Rs 201 per kg.
Assam’s tea growing districts received fair rainfall recently, while North Bengal remained rather dry.
Sri Lankan teas at Colombo saw strong markets with low grown grades showing remarkable price improvement. Kenyan teas at Mombasa saw good demand but prices were irregular.
Friday, March 7, 2008
Package Sought To Revive Tea Gardens
Kolkata: A delegation of the Tea Association of India, led by its President, Shashank Prasad, called on the Union Minister of State for Commerce, Jairam Ramesh, in New Delhi on Wednesday and drew to his attention to the crisis facing the tea gardens in the Dooars and Terai regions of northern part of West Bengal.
Complimenting the Minister on his initiative to reopen the closed gardens in Dooars, the delegation appealed to him for a package to bring the gardens back to health. Nearly half the tea gardens in the region were ailing and the problem had been compounded by the lower productivity of both land and labour. The average price realisation of tea produced in the region, too, was low.
The delegation suggested that the package should offer, among other things, bank loans at concessional rates for replantations. It also suggested that the relevant provisions of the North East Industrial and Investment Policy be extended to the tea industry in North Bengal.
The delegation felt that there was an urgent need for the allotment of foodgrains to tea gardens at BPL rate for distribution of the same at the subsidised rate to tea garden workers and their dependents in the gardens.
Complimenting the Minister on his initiative to reopen the closed gardens in Dooars, the delegation appealed to him for a package to bring the gardens back to health. Nearly half the tea gardens in the region were ailing and the problem had been compounded by the lower productivity of both land and labour. The average price realisation of tea produced in the region, too, was low.
The delegation suggested that the package should offer, among other things, bank loans at concessional rates for replantations. It also suggested that the relevant provisions of the North East Industrial and Investment Policy be extended to the tea industry in North Bengal.
The delegation felt that there was an urgent need for the allotment of foodgrains to tea gardens at BPL rate for distribution of the same at the subsidised rate to tea garden workers and their dependents in the gardens.
Thursday, March 6, 2008
North Indian Teas Seen Fetching Higher Prices
Kolkata: The new season for North Indian teas grown in Assam, Dooars and Darjeeling is due to start shortly and the tea industry hopes that it will open with higher average price compared with last year.
The price, it is estimated, will be up at least by Rs 10 per kg on an average, if not more.
“The market is going to be strong for both CTC and orthodox varieties,” observe tea industry sources.
Several reasons are being given for the probable higher price of tea in the coming season.
First, the absence of any carryover stock. As the industry sources point out, in next two weeks, no auctions are going to be held in any of the three North Indian auction centres at Kolkata, Guwahati and Siliguri due to non-availability of stocks.
No teas are available with the packeteers either, it is pointed out.
A couple of auctions were cancelled in past few weeks also.
Second, an estimated 10 per cent shortfall in the Kenyan crop due to unfavourable weather condition has pushed up the prices of the Kenyan varieties. If the trend persists, there will be a drop in Kenyan exports and to that extent the export demand for the Indian teas, particularly the CTC variety, will rise, it is felt.
Crop size
Finally, the domestic demand for teas continues to be buoyant at an average growth rate of 3-3.5 per cent. Which means an additional demand for an estimated 30 million kg will be created this year. Unless the local availability improves substantially, there will be pressure on the prices.
It is too early to predict the size of the North Indian crop right now. The Dooars and Darjeeling and lower Assam crops may be delayed due to dry spell. But not so in upper Assam where there has been some rainfall. A clear picture is likely to emerge from around the second week of April.
On the other hand, the rainfall has been widespread in the South.
The average price of the orthodox varieties in the South has been on the higher side, add industry sources.
The price, it is estimated, will be up at least by Rs 10 per kg on an average, if not more.
“The market is going to be strong for both CTC and orthodox varieties,” observe tea industry sources.
Several reasons are being given for the probable higher price of tea in the coming season.
First, the absence of any carryover stock. As the industry sources point out, in next two weeks, no auctions are going to be held in any of the three North Indian auction centres at Kolkata, Guwahati and Siliguri due to non-availability of stocks.
No teas are available with the packeteers either, it is pointed out.
A couple of auctions were cancelled in past few weeks also.
Second, an estimated 10 per cent shortfall in the Kenyan crop due to unfavourable weather condition has pushed up the prices of the Kenyan varieties. If the trend persists, there will be a drop in Kenyan exports and to that extent the export demand for the Indian teas, particularly the CTC variety, will rise, it is felt.
Crop size
Finally, the domestic demand for teas continues to be buoyant at an average growth rate of 3-3.5 per cent. Which means an additional demand for an estimated 30 million kg will be created this year. Unless the local availability improves substantially, there will be pressure on the prices.
It is too early to predict the size of the North Indian crop right now. The Dooars and Darjeeling and lower Assam crops may be delayed due to dry spell. But not so in upper Assam where there has been some rainfall. A clear picture is likely to emerge from around the second week of April.
On the other hand, the rainfall has been widespread in the South.
The average price of the orthodox varieties in the South has been on the higher side, add industry sources.
Monday, March 3, 2008
Inadequate Tea Offerings At Kolkata, Siliguri
Kolkata: Last week there were no auctions at Kolkata and Siliguri due to inadequate offerings, according to J Thomas & Company Pvt Ltd. The small quantity of CTC leaf and dust teas on offer at Guwahati sold readily in line with quality. There was fair support from the major blender and strong inquiry from the internal section.
Neither Orthodox nor Darjeeling sale was held last week. The sale numbers 11 and 12 were dropped in Kolkata due to insufficient arrivals.
International
Mombasa offerings met with less demand at easier rates with some teas remaining unsold due to the decline in quality and the correction in prices. Egypt, Yemen, Sudan and other West Asian shippers operated while other traditional exporters were selective.
In Colombo auctions, selected better categories sold well while the remainder tended irregular. The shippers to Japan, UK and the Continent operated for the liquoring sorts while those to the CIS, West Asia and Turkey were active.
Neither Orthodox nor Darjeeling sale was held last week. The sale numbers 11 and 12 were dropped in Kolkata due to insufficient arrivals.
International
Mombasa offerings met with less demand at easier rates with some teas remaining unsold due to the decline in quality and the correction in prices. Egypt, Yemen, Sudan and other West Asian shippers operated while other traditional exporters were selective.
In Colombo auctions, selected better categories sold well while the remainder tended irregular. The shippers to Japan, UK and the Continent operated for the liquoring sorts while those to the CIS, West Asia and Turkey were active.
Monday, February 25, 2008
Kolkata Tea Sale: Good Demand For CTC Leaf, Dust
Kolkata: Last week, the CTC leaf and dust teas met with good demand at the auction centres in Guwahati, Siliguri and Kolkata. The offerings comprised old season varieties which were readily absorbed and the few earlier teas on offer sold at attractive rates. The major blender was selective while the other major packeteer was quiet. Internal sections operated strongly. Run-up to Budget 2008-09
Selected well-made orthodox whole leaf sold well following inquiries from North India and local buyers. Stalk free clean varieties were firm to dearer while the remainder were lower following quality. There were some export inquiries.
The small weight of Darjeeling whole leaf on offer sold at firm to dearer rates while brokens and fannings were irregularly lower. Local dealers absorbed the bulk of the offerings.
CROP
The Kolkata sale 9, due on February 25, has been dropped in view of the paucity of arrivals.
INTERNATIONAL
In the Colombo auction, selected better sorts and plainer categories sold well at firm to dearer rates while the remainder tended irregularly lower. Traditional exporters were active.
The Mombasa market saw less demand at easier rates with some withdrawals. Few better smaller grades, however, saw good enquiry. West Asia and Russia lent strong support while Kazakhstan was fairly active with some interests from Sudan. The packers from Pakistan, the UK and Egypt were less active.
Selected well-made orthodox whole leaf sold well following inquiries from North India and local buyers. Stalk free clean varieties were firm to dearer while the remainder were lower following quality. There were some export inquiries.
The small weight of Darjeeling whole leaf on offer sold at firm to dearer rates while brokens and fannings were irregularly lower. Local dealers absorbed the bulk of the offerings.
CROP
The Kolkata sale 9, due on February 25, has been dropped in view of the paucity of arrivals.
INTERNATIONAL
In the Colombo auction, selected better sorts and plainer categories sold well at firm to dearer rates while the remainder tended irregularly lower. Traditional exporters were active.
The Mombasa market saw less demand at easier rates with some withdrawals. Few better smaller grades, however, saw good enquiry. West Asia and Russia lent strong support while Kazakhstan was fairly active with some interests from Sudan. The packers from Pakistan, the UK and Egypt were less active.
Monday, February 18, 2008
CTC Leaf, Dust Teas See Good Demand At N. India Auction
Kolkata: Last week, there was good demand for CTC leaf and dust teas in North Indian tea auction centres, according to J Thomas & Company Pvt Ltd, the tea auctioneers. Cleaner leaf teas were often dearer while the remainder were irregular and the browner sorts declined in value. Run-up to Budget 2008-09
The major blender was active for the better sorts while the other major packeteer was selective. Internal and local buyers operated.
Cheaper leaf
Selected clean and good leafier orthodox varieties were irregular while the remainder eased in value. North India operated for the cheaper whole leaf with some support from the major blender. Export inquiry was subdued.
The limited quantity of Darjeeling whole leaf grades on offer sold at firm to dearer rates while the remainder tended easier with poor leaf sorts neglected. Local dealers were the mainstay of the market.
Total Crop
According to the Tea Board, in 2007, the total crop stood at 944.7 million kg (mkg), a decline of 11.2 mkg vis-À-vis 2006. The North Indian production at 724.7 mkg was behind 4.9 mkg as compared to the previous year.
International
Colombo auctions tended irregular with better whole leaf grades (known as OP/OPAs) and leafy broken grades tending lower while the others were largely firm to dearer. The Gulf and Turkish exporters were active with some support from CIS/Iran shippers.
The Mombasa auctions opened strongly at firm to dearer rates but, as the sale progressed, the demand eased. Exporters to Pakistan, Egypt, Sudan, Russia, the UK and West Asia were active.
The major blender was active for the better sorts while the other major packeteer was selective. Internal and local buyers operated.
Cheaper leaf
Selected clean and good leafier orthodox varieties were irregular while the remainder eased in value. North India operated for the cheaper whole leaf with some support from the major blender. Export inquiry was subdued.
The limited quantity of Darjeeling whole leaf grades on offer sold at firm to dearer rates while the remainder tended easier with poor leaf sorts neglected. Local dealers were the mainstay of the market.
Total Crop
According to the Tea Board, in 2007, the total crop stood at 944.7 million kg (mkg), a decline of 11.2 mkg vis-À-vis 2006. The North Indian production at 724.7 mkg was behind 4.9 mkg as compared to the previous year.
International
Colombo auctions tended irregular with better whole leaf grades (known as OP/OPAs) and leafy broken grades tending lower while the others were largely firm to dearer. The Gulf and Turkish exporters were active with some support from CIS/Iran shippers.
The Mombasa auctions opened strongly at firm to dearer rates but, as the sale progressed, the demand eased. Exporters to Pakistan, Egypt, Sudan, Russia, the UK and West Asia were active.
Wednesday, January 30, 2008
Tea Shipments Through Amingaon Likely To Continue
Kolkata: Tea shipments through the Amingaon (Guwahati) inland container depot (ICD) will continue till March, in keeping with the trend observed last year, according to various agencies involved in shipments. Till a couple of years ago, the shipments used to come to an end in end January/early February. The ICD shipments will continue till March because many buyers would like to stagger their buying according to the market demand, instead of taking delivery early and spending on warehousing. A leading tea exporter says he has still two million kg to export in the next two months.
Marginally higher
The size of the ICD shipment this year, according to tea industry sources, will not be less than last year’s throughput of about 2,600 TEUs. The throughput could be even marginally higher this year than that in 2006-07, it is pointed out. This will happen because the supply from Kenya has become uncertain in view of the disturbed condition there. In Sri Lanka too, the situation, it is reported, is not all that favourable due to many reasons. Also, the prices of Sri Lankan teas, mostly orthodox, are high.
However, the shipping lines and the railways, which are the partners in ICD shipments, do not share the same kind of optimism. In their opinion, the shipments this year could be a little less than last year as is evident from the trend so far – 2,139 TEUs till the end of January this year as compared to 2,371 TEUs in the same period of last year. The country’s overall exports are less than last year for various reasons – lower production, high domestic demand and appreciation of the rupee vis-À-vis US dollar.
Another interesting feature of this year’s ICD shipment has been the rise in shipments to non-UK/Continent destinations – 1,189 TEUs so far. Last year, total shipments to non-UK ports were 1,330 TEUs.
• Quarterly results of corporates: Check out
With some of the major blenders such as Unilever having set up its blending facility in Jebel Ali, large quantities of tea which would otherwise have gone to the UK/Continent are now first going to the UAE for blending.
Meanwhile, the movement out of Amingaon ICD so far this year are 2,064 TEUs of domestic rakes and 654 TEUs of Kolkata-bound rakes, according to Concor sources.
Marginally higher
The size of the ICD shipment this year, according to tea industry sources, will not be less than last year’s throughput of about 2,600 TEUs. The throughput could be even marginally higher this year than that in 2006-07, it is pointed out. This will happen because the supply from Kenya has become uncertain in view of the disturbed condition there. In Sri Lanka too, the situation, it is reported, is not all that favourable due to many reasons. Also, the prices of Sri Lankan teas, mostly orthodox, are high.
However, the shipping lines and the railways, which are the partners in ICD shipments, do not share the same kind of optimism. In their opinion, the shipments this year could be a little less than last year as is evident from the trend so far – 2,139 TEUs till the end of January this year as compared to 2,371 TEUs in the same period of last year. The country’s overall exports are less than last year for various reasons – lower production, high domestic demand and appreciation of the rupee vis-À-vis US dollar.
Another interesting feature of this year’s ICD shipment has been the rise in shipments to non-UK/Continent destinations – 1,189 TEUs so far. Last year, total shipments to non-UK ports were 1,330 TEUs.
• Quarterly results of corporates: Check out
With some of the major blenders such as Unilever having set up its blending facility in Jebel Ali, large quantities of tea which would otherwise have gone to the UK/Continent are now first going to the UAE for blending.
Meanwhile, the movement out of Amingaon ICD so far this year are 2,064 TEUs of domestic rakes and 654 TEUs of Kolkata-bound rakes, according to Concor sources.
Monday, January 28, 2008
Good Demand For CTC Offerings
Kolkata: Last week, the CTC offerings at the North Indian auction centres in Kolkata, Siliguri and Guwahati met with good demand, with prices closely following the quality, according to J Thomas & Company Pvt Ltd, tea auctioneers.
Selected cleaner better sorts were around last week’s levels, while the remainder were on an easier trend following the decline in quality. There were good inquiries from major blenders and other domestic segments, while exporters were very selective.
Orthodox teas
Orthodox teas also met with good demand. Whole leaf grades tended lower while brokens and fannings were last and irregularly lower. The support from the CIS and West Asian shippers was fair with fannings meeting with inquiry from the major blender.
• Quarterly results of corporates: Check out
Darjeeling whole leaf grades were readily absorbed while brokens and fannings were irregularly lower. Local dealers were the mainstay of the market with some support from a major packeteer. Exporters were selective.
CROP & OFFERINGS
Arrivals at the auction centres are showing a sharp weekly decline following the closure of the growing season in North India.
The demand at Mombasa auctions continued to be strong with all sorts appreciating substantially following strong support from the shippers from Pakistan, Egypt, Kazakhstan, Yemen and West Asia.
The Colombo market witnessed an easier trend following heavy arrivals. Traditional export markets were active.
Selected cleaner better sorts were around last week’s levels, while the remainder were on an easier trend following the decline in quality. There were good inquiries from major blenders and other domestic segments, while exporters were very selective.
Orthodox teas
Orthodox teas also met with good demand. Whole leaf grades tended lower while brokens and fannings were last and irregularly lower. The support from the CIS and West Asian shippers was fair with fannings meeting with inquiry from the major blender.
• Quarterly results of corporates: Check out
Darjeeling whole leaf grades were readily absorbed while brokens and fannings were irregularly lower. Local dealers were the mainstay of the market with some support from a major packeteer. Exporters were selective.
CROP & OFFERINGS
Arrivals at the auction centres are showing a sharp weekly decline following the closure of the growing season in North India.
The demand at Mombasa auctions continued to be strong with all sorts appreciating substantially following strong support from the shippers from Pakistan, Egypt, Kazakhstan, Yemen and West Asia.
The Colombo market witnessed an easier trend following heavy arrivals. Traditional export markets were active.
Tuesday, January 22, 2008
Mysore Tobacco Auctions Close On High Note
Kolkata: Mysore tobacco auctions in Karnataka, which officially closed last week on a buoyant note, has set many records since the launch of tobacco auctions in the country in 1984.
Record time
According to Tobacco Board officials, for the first time since introduction of auctions, not a single day was lost on account of interruptions, leading to completion of the auctions in record time.
Officials said though the market began on a cautious note owing to steep appreciation of the rupee, farmers have realised 6 per cent more than 2006, indicating a strong demand for the Mysore Neutral Filler tobaccos.
Rapid pace
According to L. Anand, a veteran tobacco grower of Mysore, demand peaked post-Diwali and continued till closure of the auctions. During this period, spanning over 50 days auction days, more than 50 per cent of the leaf sold was allotted by Tobacco Board officials to the trade at a top price of Rs 68/kg, it is learnt.
The Mysore 2007 markets opened in 10 auction floors on September 6, 2007, with the maximum price of Rs 68/kg (same as in 2006).
• Quarterly results of corporates: Check out
A total volume of 88 million kg (mkg) was marketed in 99 auction days (against 152 auction days in 2006), indicating a record turnover of volume handled per day.
Price realisation
It is learnt that despite increase in the production of medium and low grades, compared with 2006 season, the per kg farmer realisation price in 2007 has gone up owing to a favourable global demand for leaf tobacco.
The crop marketed in 2006 was 97 mkg with the average price realised at Rs 55.95/kg. Farmers, it is learnt, have realised an average price of Rs 59.21 per kg during Mysore 2007 season, said to be the highest since inception of tobacco auction system some 23 years ago. The bright and medium grades in the just concluded auctions fetched average per kg prices of Rs 67.3 (Rs 34) and Rs 61.54 (Rs 43) respectively.
The rapid pace of auctions this year, a clear departure from that in previous years, according to Karnataka Tobacco Growers’ Association sources, has generated a lot of value for all stakeholders in the industry - for farmers in terms of farm waste reduction and for the trade in terms of better retention of keeping quality and colour of the leaf.
Record time
According to Tobacco Board officials, for the first time since introduction of auctions, not a single day was lost on account of interruptions, leading to completion of the auctions in record time.
Officials said though the market began on a cautious note owing to steep appreciation of the rupee, farmers have realised 6 per cent more than 2006, indicating a strong demand for the Mysore Neutral Filler tobaccos.
Rapid pace
According to L. Anand, a veteran tobacco grower of Mysore, demand peaked post-Diwali and continued till closure of the auctions. During this period, spanning over 50 days auction days, more than 50 per cent of the leaf sold was allotted by Tobacco Board officials to the trade at a top price of Rs 68/kg, it is learnt.
The Mysore 2007 markets opened in 10 auction floors on September 6, 2007, with the maximum price of Rs 68/kg (same as in 2006).
• Quarterly results of corporates: Check out
A total volume of 88 million kg (mkg) was marketed in 99 auction days (against 152 auction days in 2006), indicating a record turnover of volume handled per day.
Price realisation
It is learnt that despite increase in the production of medium and low grades, compared with 2006 season, the per kg farmer realisation price in 2007 has gone up owing to a favourable global demand for leaf tobacco.
The crop marketed in 2006 was 97 mkg with the average price realised at Rs 55.95/kg. Farmers, it is learnt, have realised an average price of Rs 59.21 per kg during Mysore 2007 season, said to be the highest since inception of tobacco auction system some 23 years ago. The bright and medium grades in the just concluded auctions fetched average per kg prices of Rs 67.3 (Rs 34) and Rs 61.54 (Rs 43) respectively.
The rapid pace of auctions this year, a clear departure from that in previous years, according to Karnataka Tobacco Growers’ Association sources, has generated a lot of value for all stakeholders in the industry - for farmers in terms of farm waste reduction and for the trade in terms of better retention of keeping quality and colour of the leaf.
Monday, January 21, 2008
Good Demand For Ctcs At North Indian Sales
Kolkata: Last week, the CTC offerings at the three north Indian tea auction centres at Kolkata, Siliguri and Guwahati met with good demand, according to the tea auctioneer, J. Thomas & Company Private Ltd. Selected better varieties held levels, with the remainder declining in quality.
There were good inquiries from the major blenders and domestic segments.
The export inquiries were selective.
The orthodox teas also saw good demand with prices declining following quality.
Selected smaller brokens sold around last levels. The buyers for the CIS countries and West Asia dominated the market.
The Darjeeling varieties were well absorbed at steady rates for whole leaf and better fannings.
Brokens were irregular. There were good inquiries from local dealers and major packeteers, with selective export interests.
CROP & OFFERINGS
With the cropping season having come to a close, the arrivals at the auction centres are showing a sharp decline.
INTERNATIONAL
The political crisis in Kenya and the consequent adverse effects on the harvests pushed up the demand at the Mombasa auction with the result the prices shot up substantially.
• Check out our Yearender Special
Pakistan, Egypt, the UK, the CIS and Sudan were active.
The Sri Lankan market witnessed an easier trend following a sharp increase in arrivals.
The bearish trend is expected to continue in view of the excess supply situation. The traditional exporters operated low.
There were good inquiries from the major blenders and domestic segments.
The export inquiries were selective.
The orthodox teas also saw good demand with prices declining following quality.
Selected smaller brokens sold around last levels. The buyers for the CIS countries and West Asia dominated the market.
The Darjeeling varieties were well absorbed at steady rates for whole leaf and better fannings.
Brokens were irregular. There were good inquiries from local dealers and major packeteers, with selective export interests.
CROP & OFFERINGS
With the cropping season having come to a close, the arrivals at the auction centres are showing a sharp decline.
INTERNATIONAL
The political crisis in Kenya and the consequent adverse effects on the harvests pushed up the demand at the Mombasa auction with the result the prices shot up substantially.
• Check out our Yearender Special
Pakistan, Egypt, the UK, the CIS and Sudan were active.
The Sri Lankan market witnessed an easier trend following a sharp increase in arrivals.
The bearish trend is expected to continue in view of the excess supply situation. The traditional exporters operated low.
Wednesday, January 16, 2008
Rubber Goods Makers Call For Duty-Free Imports
KOLKATA: Hit by rising price of domestic natural rubber due to heavy rains in Kerala, producers of rubber goods have asked the government to allow duty-free imports of 1 lakh tonne of synthetic rubber, among other demands.
The rubber goods makers have also called for a reversal of the inverse duty structure, where the duty on the finished goods are higher than that on raw materials.
They have also sought withdrawal of anti-dumping duty on synthetic rubber, removal of cess on import of natural rubber and scrapping the system of getting Rubber Board licence for natural rubber procurement.
Natural rubber production in the 2007-08 season is estimated to drop 4% to 8.19 lakh tonnes. The shortfall in this year’s natural rubber production will squeeze its availability against a steady 4% growth in its consumption.
“To tide over the shortage, the industry wants duty-free import of one lakh tonne of natural rubber. Impacted by the shortage, its price has already soared 30%, increasing the industry’s cost of production,” said, All India Rubber Industries Association (AIRIA), president, MF Vohra.
The policy of the government is to fix the duty for raw materials lower than the duty on finished products. But the rubber industry is facing an inverse import duty structure. While the customs duty on finished rubber goods have been brought down to 10%, duties on natural rubber and latex remained unaltered at 20% and 70% respectively.
The government formed the Hoda panel to correct inverted duty structures. But nothing has been done to reverse the structure for the rubber industry, said Mr Vohra. Though port restriction on import of natural rubber has been lifted, imported natural rubber is subjected to quality checks by the Rubber Board.
Samples from the consignment are taken by the Board staff, stationed at each port. They are then couriered to the Board’s head office in Kottayam. “The process normally takes 7-10 days, resulting in holding up of the consignments at the port and subsequently hiking the detention/ demurrage charges,” Mr Vohra said.
The rubber goods makers have also called for a reversal of the inverse duty structure, where the duty on the finished goods are higher than that on raw materials.
They have also sought withdrawal of anti-dumping duty on synthetic rubber, removal of cess on import of natural rubber and scrapping the system of getting Rubber Board licence for natural rubber procurement.
Natural rubber production in the 2007-08 season is estimated to drop 4% to 8.19 lakh tonnes. The shortfall in this year’s natural rubber production will squeeze its availability against a steady 4% growth in its consumption.
“To tide over the shortage, the industry wants duty-free import of one lakh tonne of natural rubber. Impacted by the shortage, its price has already soared 30%, increasing the industry’s cost of production,” said, All India Rubber Industries Association (AIRIA), president, MF Vohra.
The policy of the government is to fix the duty for raw materials lower than the duty on finished products. But the rubber industry is facing an inverse import duty structure. While the customs duty on finished rubber goods have been brought down to 10%, duties on natural rubber and latex remained unaltered at 20% and 70% respectively.
The government formed the Hoda panel to correct inverted duty structures. But nothing has been done to reverse the structure for the rubber industry, said Mr Vohra. Though port restriction on import of natural rubber has been lifted, imported natural rubber is subjected to quality checks by the Rubber Board.
Samples from the consignment are taken by the Board staff, stationed at each port. They are then couriered to the Board’s head office in Kottayam. “The process normally takes 7-10 days, resulting in holding up of the consignments at the port and subsequently hiking the detention/ demurrage charges,” Mr Vohra said.
Monday, January 14, 2008
Sesame Seed Exports Likely To Take A Hit
Kolkata: India, a top exporter of sesame seeds after Ethiopia and China, may lose this status soon, going by the current plight of Indian exporters, pummelled by a cash crunch on the one side because of rupee appreciation, and a steep hike in domestic prices of the agri commodity in producing States, on the other.
Supply shortfall
Exporters, facing a situation of involuntary default in supplies, are in danger of losing the overseas markets at a time when global demand for sesame seeds (particularly white sesame seed) has witnessed a spurt owing to substantial crop shortfall in two of the major producers – China and Ethiopia.
Deficit in output
Some leading eastern region exporters say India too has suffered a shortfall in crop owing to weather conditions (to the extent of 25 per cent), directly contributing to the big hike in quintal price in the last one year or so.
According to Rajkumar Beriwal of Balaji Overseas, price of white sesame seed in Madhya Pradesh has shot up from Rs 2,900 per quintal last year (2006-07 May crop) to Rs 5,200 this year.
Indian price of sesame seed now, according to trade, was higher than the Chinese and Ethiopian quotes by nearly $50 a tonne.
• Check out our Yearender Special
Pointing out that the price situation, combined with the high cost of funds for exporters, was fast rendering the situation unsustainable, he said the f.o.b. price per tonne (for October forward contract delivery) has shot up from $950 to $1,500. He feared a situation when some 60 per cent of the exporters may default on contracted supplies if the situation is allowed to persist for some more time.
Asked what needed to be done, he said there was now a strong case for re-inclusion of sesame seeds (in Appendix 37A, HBP Vol. 1) for duty credit benefit under the Vishesh Krishi Gram Upaaj Yojana (VKGUY) of the Government of India.
It is felt that the erstwhile VKGUY benefit should be immediately restored as otherwise Indian exporters will be forced out of their traditional markets such as Korea, the US, Taiwan, New Zealand, Germany, Greece and Turkey.
The nation’s average annual forex earnings through sesame seed export are put at between Rs 750 crore and Rs 950 crore. The volumes are said to be around 23,000 tonnes, accounting for some 25 per cent of world trade in sesame seeds.
According to P.K.Shaw, Chairman of the Shellac and Forest Product EPC, sesame seed was withdrawn from the erstwhile VKGUY Scheme in September 2005 as the product was not a forest produce, but an agricultural commodity.
He said some of the other factors affecting exports were growing competition from China and Ethiopia, and loss of cultivation owing to floods in the sesame growing States such as Maharashtra, Rajasthan and Gujarat.
Supply shortfall
Exporters, facing a situation of involuntary default in supplies, are in danger of losing the overseas markets at a time when global demand for sesame seeds (particularly white sesame seed) has witnessed a spurt owing to substantial crop shortfall in two of the major producers – China and Ethiopia.
Deficit in output
Some leading eastern region exporters say India too has suffered a shortfall in crop owing to weather conditions (to the extent of 25 per cent), directly contributing to the big hike in quintal price in the last one year or so.
According to Rajkumar Beriwal of Balaji Overseas, price of white sesame seed in Madhya Pradesh has shot up from Rs 2,900 per quintal last year (2006-07 May crop) to Rs 5,200 this year.
Indian price of sesame seed now, according to trade, was higher than the Chinese and Ethiopian quotes by nearly $50 a tonne.
• Check out our Yearender Special
Pointing out that the price situation, combined with the high cost of funds for exporters, was fast rendering the situation unsustainable, he said the f.o.b. price per tonne (for October forward contract delivery) has shot up from $950 to $1,500. He feared a situation when some 60 per cent of the exporters may default on contracted supplies if the situation is allowed to persist for some more time.
Asked what needed to be done, he said there was now a strong case for re-inclusion of sesame seeds (in Appendix 37A, HBP Vol. 1) for duty credit benefit under the Vishesh Krishi Gram Upaaj Yojana (VKGUY) of the Government of India.
It is felt that the erstwhile VKGUY benefit should be immediately restored as otherwise Indian exporters will be forced out of their traditional markets such as Korea, the US, Taiwan, New Zealand, Germany, Greece and Turkey.
The nation’s average annual forex earnings through sesame seed export are put at between Rs 750 crore and Rs 950 crore. The volumes are said to be around 23,000 tonnes, accounting for some 25 per cent of world trade in sesame seeds.
According to P.K.Shaw, Chairman of the Shellac and Forest Product EPC, sesame seed was withdrawn from the erstwhile VKGUY Scheme in September 2005 as the product was not a forest produce, but an agricultural commodity.
He said some of the other factors affecting exports were growing competition from China and Ethiopia, and loss of cultivation owing to floods in the sesame growing States such as Maharashtra, Rajasthan and Gujarat.
Good Demand At N. India Tea Sales
Kolkata: Last week, the CTC teas at the North India tea auction centres at Kolkata, Siliguri and Guwahati saw a good demand, according to J. Thomas & Company Pvt Ltd. The prices showed a slight easing following quality.
The major blenders continued to operate strongly while other internal segments too remained active. Dust grades appreciated.
Orthodox teas also saw a good demand at around last levels with smaller brokens and fannings being firm to occasionally dearer.
There was good support from the CIS countries with a fair amount of interest from West Asia.
• Check out our Yearender Special
Darjeeling whole leaf and brokens saw good demand at barely steady rates. Fannings witnessed limited inquiries.
Crop & exports
The crop figures released by the Tea Board indicate an increase of approximately 3.8 million kg in North India teas and one million kg in South India teas in November.
However, the consolidated figures up to November vis-À-vis the same period last year show a drop in production of 15.4 mkg — 9.8 mkg of North Indian teas and of 5.6 mkg of the South Indian varieties.
The January-November exports at 144.8 mkg were lower by 52.3 mkg vis-À-vis the same period of last year.
International
Kenyan teas in Mombasa auction saw a strong general demand at dearer rates following active support from Pakistan, the UK, the CIS and West Asia.
In Colombo, Sri Lankan markets saw a good demand. Pekoes appreciated.
Inquiries were forthcoming from Iran, the CIS and Dubai.
The major blenders continued to operate strongly while other internal segments too remained active. Dust grades appreciated.
Orthodox teas also saw a good demand at around last levels with smaller brokens and fannings being firm to occasionally dearer.
There was good support from the CIS countries with a fair amount of interest from West Asia.
• Check out our Yearender Special
Darjeeling whole leaf and brokens saw good demand at barely steady rates. Fannings witnessed limited inquiries.
Crop & exports
The crop figures released by the Tea Board indicate an increase of approximately 3.8 million kg in North India teas and one million kg in South India teas in November.
However, the consolidated figures up to November vis-À-vis the same period last year show a drop in production of 15.4 mkg — 9.8 mkg of North Indian teas and of 5.6 mkg of the South Indian varieties.
The January-November exports at 144.8 mkg were lower by 52.3 mkg vis-À-vis the same period of last year.
International
Kenyan teas in Mombasa auction saw a strong general demand at dearer rates following active support from Pakistan, the UK, the CIS and West Asia.
In Colombo, Sri Lankan markets saw a good demand. Pekoes appreciated.
Inquiries were forthcoming from Iran, the CIS and Dubai.
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