Pepper futures end up; seen firm

MUMBAI: India pepper futures, which ended nearly 4 percent up on Thursday, are seen opening firm in the next session as strong domestic demand and supply constraints may aid sentiment, analysts said.

"The price of India origin MG-1 Asta grade pepper rose by $400 per ton in the international market in the last 10 days. Prices will continue to move up," said Jojan Malayil, vice chairman, India Spices Exporters forum.

Prices of almost all origins such as Vietnam, Indonesia, India and Brazil have moved up in the last 1 month, said Malayil. "Exports will be very limited this year.

We have huge consumption and our crop is very close to that," said Malayil. Spot pepper gained 207.4 rupees to end at 14,607.95 rupees per 100 kg in Kochi, a major trading hub in Kerala.

Cumin futures drop on profit-booking

MUMBAI: India's cumin futures were lower in the opening trade on Wednesday on profit-booking after rising continuously for the last 4 sessions, analysts said.

Weakness in other spices also weighed on prices, analysts added.

At 10:40 a.m., the April contract was lower by 0.62 percent at 12,080 rupees per 100 kg. The contract has risen more than 2 per cent in the last 4 sessions till Tuesday.

Cumin exports in January 2010 dropped by 47 percent to 2,000 tonnes on year, the Spices Board said.

Arrivals are expected to gain pace in the next few days and would peak in March-April, pressuring prices, analysts said.

Spices move up on seasonal demand, low stocks

MUMBAI: India's turmeric futures rose nearly 2 per cent by midday on Tuesday on fresh-buying driven by encouraging domestic demand and depleting stocks, analysts said.

"Volumes are good in April contract. Traders are bullish on prices. Off-take is good in physical market on anticipation of higher prices," said Vandana Bharti, senior analyst at SMC Comtrade.

At 2:54 p.m., the benchmark April turmeric was up 1.55 per cent at 11,275 rupees per 100 kg.

In Nizamabad, a major spot market in Andhra Pradesh, the price dropped 243 rupees to 11,651 rupees after rising 12 per cent since March 17.

Turmeric arrivals usually start in mid-January in small quantities and gain momentum from March.

The peak season runs till June. Turmeric exports in January 2010 stood at 3,250 tonnes, down 22.61 per cent from a year ago, according to data from the Spices Board.

Cumin: India's cumin futures continued to trade higher, supported by seasonal demand, falling stocks and a decline in arrivals, analysts said.

"Domestic demand is picking up. Stocks are declining.... Cumin prices should move up gradually," said an analyst from a Delhi-based brokerage.

At 2:54 p.m., the benchmark April cumin contract was up 0.36 per cent at 12,168 rupees per 100 kg.

At Unjha, the benchmark market, the price gained 28 rupees to trade at 11,972 rupees per 100 kg.

PEPPER: India pepper futures were higher in the afternoon trade on firm domestic demand and weak arrivals in the physical market as farmers held on to their produce for better prices, analysts said.

"Market is moving up on technical buying. Demand is gaining pace in the domestic market, supporting prices," said an analyst from SMC Comtrade.

At 2:52 p.m., the benchmark April pepper contract was up 1.27 per cent at 14,550 rupees per 100 kg.

Turmeric drops on profit-booking; jeera, pepper up

MUMBAI: India's turmeric futures wiped out early gains by midday on Monday on profit-booking after gaining more than 15 percent in the last 5 sessions and on rising arrivals in the physical market, analysts said. "Arrivals are gaining pace in spot market but demand is good and is likely to support prices," said Sudha R. Acharya, analyst at Kotak Commodities Services.

At 1:59 p.m., the benchmark April turmeric was down 0.56 percent at 11,500 rupees per 100 kg. In Nizamabad, a major spot market in Andhra Pradesh, the price gained 544 rupees to 11,920 rupees. Turmeric arrivals usually start in mid-January in small quantities and gain momentum from March. The peak season runs till June.

Turmeric exports in January 2010 stood at 3,250 tonnes, down 22.61 percent from a year ago, according to data from the Spices Board.

JEERA: India's jeera futures were higher on improved seasonal demand and a decline in arrivals, analysts said.

"Domestic demand is supporting prices. However, overseas demand is still weak. The April contract may test resistance at 12,420 rupees per 100 kg," said an analyst from Kotak Commodities Services Ltd. At 1:56 p.m., the benchmark April jeera contract was up 0.87 percent at 12,150 rupees per 100 kg. At Unjha, the benchmark market, the price traded almost steady at 11,936 rupees per 100 kg. Jeera exports in January 2010 dropped by 47 percent to 2,000 tonnes on year, the Spices Board said.

PEPPER: India pepper futures were higher on robust domestic demand amid limited supply in the market as farmers held on to their produce for better prices, analysts said. "Trend is positive in pepper. April contract may jump to 15,028 levels in short-term," said an analyst from Kotak Commodities Services.

At 1:54 p.m., the benchmark April pepper contract was up 0.81 percent at 14,620 rupees per 100 kg. Spot pepper gained 468 rupees to 14,451 rupees per 100 kg in Kochi, a major trading hub in Kerala. Indian pepper exports in January stood at 1,500 tonnes, down 28.57 percent on year, the Spices Board said.

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Mango output may surge 50% to 2-cr ton this year

AHMEDABAD: After hitting a rough patch last year, there may be a bumper mango production this year, say experts. Though figures on crop production vary, experts are unanimous that major mango producers like UP, Gujarat and Maharashtra will reap the bounty this year.

Experts forsee 50% rise in mango production at 2 crore tonne, compared to average of 1.2 crore ton.The climate build up till now has been favourable and if all goes well then Uttar Pradesh, Maharashtra and Gujarat may see good harvest.

India is the largest producer of the King of Fruits, thanks to its tropical climate and it accounts for 16 lakh hectare cultivation or roughly half of the total world’s total area under mango cultivation. Mexico, China, Philippines and African countries are other major producers of the fruit. There are 30 main varieties under cultivation in India, chiefly Dashehari, Alphonso, Kesar, Banganpalli and Langda.

K P Kikani, President, Gujarat Horticulture Development Council, Anand, said, “I have learnt that the crop is developing well in Uttar Pradesh and it may see bumper crop this year.”

Gujarat too, which is the fourth largest producer in the country, expects good production.

“Due to sustained favourable climate, mango trees are seeing good fruition. We have seen extended flowering this season as there were lesser temperature fluctuations during the winter,” said Nitin Shah, research scientist (Horticulture) at Paria Farm, Navsari Agriculture University.

“We have witnessed some damage in the last few days in South Gujarat due to unseasonal rain but it won’t have a lasting effect. In fact, we expect double the production seen last season,” he added.

Gujarat contributes around 7% of the country’s mango production. It covers 1.2 lakh hectare area under the crop while average production in the state is 10 lakh tonne per annum.

“As per my estimate, we will see bumper crop this year. If good conditions prevail, Gujarat may see 15-20 lakh tonne production this season,” said Kikani. A good harvest of mango requires proper summer build up with clear skies. “We have not seen cloudy conditions this year and it may turn out to be favourable,” Kikani added.

Compared to 11.20 lakh tonne production during 2007-08, last year(2008-09) saw production of just 2.99 lakh tonne, as per statistics of the state agriculture directorate. Kutch, Junagadh and South Gujarat are the main mango pockets in the state.

However, all is not well down South. Tamil Nadu and Karnataka, two major mango producers in the region, are seeing delayed flowering. This may see a dip of 40-50% in production, according to YTN Reddy, Principle Scientist at Indian Institute of Horticulture Research, Bengaluru.

Pawar rules out wheat exports, favours stepping up allocation

NEW DELHI: Food and Agriculture Minister Sharad Pawar today ruled out exporting surplus wheat lying in the warehouses to reduce the stock and instead favored stepping up allocation to Above Poverty Line (APL) families.

"There is no question of allowing wheat export. My ministry has proposed to allocate more wheat to the APL families. The issue was to be taken at the EGoM meeting today, but it has been postponed," he told reporters on the sidelines of an agriculture conference here.

As on March one, the wheat stock in the Central Pool was 183.88 lakh tonnes, much more than the buffer requirement of 40 lakh tonnes till April one, according to government data.

The minister also indicated that the government will extend duty free import of wheat beyond March 31 - a move that was introduced in 2008 to increase wheat availability in the domestic market to cool prices.

"We will not take any decision, which will increase the prices, but the decision will be taken by the Cabinet," Pawar said.

Pawar also expressed hope that India's sugar production will cross 17 million tonnes this season (October-September), since recovery rate and productivity of sugarcane have improved.

If India produces 17 million tonnes sugar, import requirement will also be reduced since the earlier estimates suggested sugar output at 15-16 million tonnes against the country's requirement of 22-23 million tonnes.

Rate update

Natural sesame in Indian open market stood between USD $1015-USD $1169 per ton.

Whereas, Cumin closed between USD $1267- USD $2854 per ton.

Note: These rates are from Unjha's APMC market. The rates are exclusive of processing, packing and transportation charges.

Export ban on pulses may stay for another year

NEW DELHI: The Centre could extend ban on pulses exports by another year besides allowing duty-free imports till March 31, 2011. The subsidised pulses distribution scheme could also be stretched by another year till March 31, 2011, with four lakh tonnes of pulses distributed through the scheme. The government is also likely to put off any decision on export of wheat amid high food inflation.

All the decisions are likely to come for discussion at a meeting of the empowered group of ministers (EGoM) on food, headed by finance minister Pranab Mukherjee, expected this week. Crucially, there are strong indications that a key decision on wheat exports will be put off for now.

The decision on pulses will likely come in view of persistently high prices despite an estimated two million tonne import this year to bridge the gap between an annual demand of 18 million tonnes and a lower production of 15 million tonnes.

In June 2006, the government had removed the 10% import duty on pulses and banned exports for one year. The decisions were extended occasionally as a result of closely monitored prices. The government recently scrapped an agreement with Myanmar to import pulses after it demanded cash payment in advance.

“There is little likelihood of wheat being exported now. Our stocks are enormously higher than buffer norms but not higher than stocks same time last year. We are comfortable on this count and see little need for exports at a time of high food prices, unless there are strong signals to the contrary on food inflation,” a food ministry official told ET.

The fact that world wheat prices are soft is also expected to strengthen the argument against wheat exports at the EGoM. Instead, the government could cut prices on wheat sold to traders to ensure higher sales and avoid past pricing mistakes in open market sales that pushed up open market wheat rates.

Wheat has already started arriving in mandis in Ahmedabad and Bhopal and the government is keenly monitoring news in the hope that the private sector will make big buys this year thanks to low supplies. In turn, this would reduce the procurement burden on the State but keep farmer prices buoyed up.

Signals from MP and Gujarat are divergent and too early to be of any use in projecting a national wheat trade scenario at present. While the wheat crop in Gujarat, where harvest is already half over, has reportedly registered a big drop compared to last year thanks to poor rains, reports from MP are that the crop there could be higher by 2%. Gujarat accounts for only 3% of the country’s crop.

Nafed invites bids to import 3,000 tonnes of RBD palmolein

NEW DELHI: Agriculture cooperative NAFED on Wednesday invited bids for importing 3,000 tonnes of RBD palmolein to be delivered by next month. Bids will close on March 22 and the decision on the tender will be taken on the same day, the cooperative said on its website.

"The bids should be made for the entire tender quantity. Parties have an option for quoting additional quantities in multiples of 500 tonnes," Nafed said.

Bidders should source RBD palmolein from either Indonesia or Malaysia. The shipment should reach Haldia port, in West Bengal, by April 15, it said.

India, the world's largest importer of vegetable oil, has purchased 2.63 lakh tonnes of RBD palmolein from the overseas market in the last two months while in the same period last year it had imported 2.04 lakh tonnes, according to trade data.

Wheat, rice stocks swell; exports possible

NEW DELHI: India's wheat and rice stocks more than doubled as at March 1, government sources said on Monday, indicating the country's ability to free some stocks for exports and open market sale.Stocks of wheat were at 18.4 million tonnes, sharply higher than a target of 8.2 million tonnes, while that of rice were at 26.9 million tonnes compared with a targeted 11.8 million tonnes.

Bulging stocks and prospects of a bumper wheat crop in 2010, the fourth in a row to exceed demand, have raised concerns about storage.Farm Minister Sharad Pawar last week said a panel of ministers led by Finance Minister Pranab Mukherjee would meet this week to discuss lifting of a ban on exports of wheat and common grades of rice.

Analysts say India must export more wheat to accommodate the new crop to be harvested from March 10. The country has already allowed state-run firms to ship small quantities of wheat and regular grades of rice to neighbours Sri Lanka and Nepal.

India, the world's second-biggest producer of wheat and rice, buys grains from domestic farmers to run various welfare programmes, protect farmers from distress sale, and meet emergency needs.

Chilli, cardamom & ginger add zing to spices export basket

A sharp increase in the exports of chilli, cardamom and ginger has propelled the spices sector to post an impressive 18 per cent rise in exports in value terms for January 2010, as compared to the same month of 2009. According to Spices Board data, exports registered an increase of 25 per cent in dollar terms in January.

In January 2010, around 34,436 tonnes of spices valued at Rs 430 crore ($ 93.57 million) were exported, as against 30,870 tonnes valued at Rs 365.43 crore ($ 74.83 million) in January 2009. While exports of cardamom, chilli, garlic, nutmeg and mace, curry powder and spice oils and oleoresins rose substantially, those of pepper, cumin and mint products stayed dismal due to economic slowdown in the developed markets.

The Board had scaled down the target for the current fiscal to 4,35,000 tonnes valued at Rs 4,500 crore ($ 1,000 million) because of lower demand from the US and Europe.A shortfall in the Chinese chilli crop is expected to help India improve its export figure. Chilli exports had fallen in the first half of the current fiscal due to the high domestic prices.

China has displaced India in the Pakistan market. In the first half of 2009-10, chilli exports to Pakistan were nil, as against 22,000 tonnes during the first half of 2008-09. Chilli provided 40 per cent of the volume of 4,70,520 tonnes in 2008-09.In January 2010, chilli exports were estimated to be 17,500 tonnes valued at Rs 120 crore, as against 11,500 tonnes valued at Rs 69 crore during January 2009. This shows a 52 per cent increase in volume terms.

Similarly, a global shortage of cardamom helped boost its export substantially. A total of 310 tonnes of cardamom (small) valued at Rs 75 crore was exported in January 2010, as against 55 tonnes valued at around Rs 5 crore in January 2009.Exports of spice oils and oleoresins during the month increased to 525 tonnes from 450 tonnes in January 2009.

Exports of nutmeg during the period have increased to 3,025 tonnes valued at Rs 83.42 crore from 1,550 tonnes valued at Rs 43.72 crore. Other spices that showed substantial increases in the current year were garlic, curry powder and paste.

Source : Exim News Service - Kochi, March 3

Rate update

Natural sesame seeds in Indian open market closed between USD $1115-USD $1230 per ton.

While, cumin closed between USD $1777-USD $2850 per ton.

Note: These rates are without processing, packing and transportation charges.These rate updates are from APMC,Unjha market in Gujarat.

Global rice trade to rise by nearly 6%

NEW DELHI: Global rice trade will likely to rise by nearly 6% this year, to a three-year high of 30 million tonnes, the International Grains Council has said.

A recent report of the Council said that rice trade would be higher than the five-year average due to a rebound in shipments to Asia Deliveries to Far East Asia are forecast to rise 20%, to 8.1 million tonnes, due to strong imports by Bangladesh and the Philippines.

Bangladesh is forecast to increase imports to 700,000 tonnes this year from 145,000tpmmes in 2009 due to reduced production and increased consumption, the IGC said.

Due to a rise in shipments by Thailand and Pakistan, total exports by the five leading exporters of rice including Vietnam, India and the U.S. is projected to rise 7% by 24 million tonnes.

Rate Updates

Natural sesame seeds in Indian open market closed between USD $1157-USD $ 1205 per ton.

While, cumin closed between USD $1801-USD $2719 per ton.

Note: These rates are without processing, packing and transportation charges.These rate updates are from APMC,Unjha market in Gujarat.

Le Havre offers several advantages

A delegation comprising of Mr Christian Leroux, President,Mr Herve Cornede, Commercial & Marketing Director, Mr Alain Poussier, Marketing-Asia, Mr Bruno Hamon, Customs Officer and Capt. Ram Iyer, India Agent, Port of Le Havre,France called on the Secretary General, FIEO Mr G P Upadhyaya on Monday, January 18, 2010 in his office. The purpose of the meeting with the Secretary General was to apprise FIEO of the various strengths and competitiveadvantages of Port of Le Havre and its position as the port of first arrival for goods and services in the European Union.

Le Havre is strategically located at the entrance of the English Channel and is the first port of call of the northern range of western Europe for ocean going vessels and thus provides a head lead over its main competitors at Antwerp and Rotterdam, as ships put in there about 24-48 hrs later. It is the largest French port for containerized traffic handling; about 65% of French containerized traffic.The port enjoys an ideal geographic location, especially for the distribution to the great Paris consumption area and the creation of the biggest European logistics hub inorder to gain market shares.The port is well connected to the European hinterland by road, rail,water way and also by short sea feeders to Ireland and north European

ports.

The excellent geographical location of Le Havre and its excellent hinterland connectivity provides its customers cost effective solutions for shipping, warehousing, redistribution of their cargo through Europe.

The friendly face of French Customs at the Port of Le Havre offers a helping hand, and provides free counseling and solutions to enable and ensure economic rationale for business competitiveness. All the relevant details are available at the French Customs website www.douane.gouv.fr.

Daily rate update

Natural sesame seeds in Indian open market closed between USD $1065-USD $1207 per ton.

While cumin closed between USD $1730-USD $2527 per ton.

Note: These rates are without processing, packing and transportation charges.These rate updates are from APMC,Unjha market in Gujarat.

Trading in commodities futures rises

New Delhi: After falling for two years, futures trading in agri-commodities recovered in 2009 and grew by 48 per cent at Rs 10.88 lakh crore over the previous year on the back of the government lifting ban on five farm items, the Economic Survey said on Thursday.

"Agriculture commodity futures staged a remarkable recovery after steady decline over the last two years," the pre-budget statement on the health of the economy said. The turnover from agri-futures alone rose by 48 per cent to Rs 10.88 lakh crore in 2009 from Rs 5.22 lakh crore in the previous year, it said. The survey noted that the year 2009 started on an optimistic note as the government removed the suspension on futures trading in chana, soy oil, rubber and potato in December 2008, while the ban on wheat was lifted in May 2009.

The suspension on sugar futures, however, will remain till September this year, it added. According to the survey, total value of trade in the commodities futures market rose to Rs 70.90 lakh crore in 2009 from Rs 50.34 lakh crore in 2008. The Multi Commodity Exchange (MCX) recorded the highest turnover of Rs 59.56 lakh crore in 2009, followed by NCDEX at 8.05 lakh crore and NMCE at 1.95 lakh crore, it said.

Farm commodities, bullion and energy accounted for a large share of the items traded in the commodities futures market last year.

Currently, there are four national level and 19 regional commodity exchanges in the country.