Textiles exports may touch $24 billion in 2010-11

NEW DELHI: With the revival of demand in Western markets, India's textile exports may grow up to $24 billion in 2010-11 from an estimated $20 billion in the previous fiscal, industry and government officials have said.

"In 2009-10, our textiles exports are estimated at $20 billion due to the global economic crisis. We expect exports to be $24 billion for the current fiscal," an official in the Textile Ministry said.

The textile exports are set to move in sync with the country's overall exports, which have been growing for six months since November, 2009.

Federation of Indian Export Organisations (FIEO) President A Sakthivel said textile exports can reach $24 billion if the government extends a helping hand to the industry, which is facing problems.

There has been a steep rise in cotton prices, which shot up by over 20 per cent in the past six months, resulting in higher fabric costs.

"The target can be met provided the government continues some regulations on cotton and cotton yarn exports," he said.

The government has brought cotton exports under the restricted category, with overseas shipments subject to licensing. US and European markets, which account for 30-35 per cent of textile exports from India, have seen revival of demand across different sectors, exporters said.

The exporters are also exploring new markets like Africa, Latin America and Oceania.

"Orders are improving. Demand for fabric has also gone up," said Confederation of Indian Textile Industry (CITI) Secretary General D K Nair.

Spices futures down on profit booking

MUMBAI: Turmeric futures were weak in the afternoon session on Tuesday on profit booking triggered by subdued demand in the spot market, analysts said. "Traders prefer to buy at lower levels. Prices have risen a lot in the last one month. Outlook for long term is positive on poor stocks and overseas inquiries," said a trader from Nizamabad, a major spot market in Andhra Pradesh.

The most active June turmeric was down 1.43 percent at 14,321 rupees per 100 kg. In Nizamabad, turmeric dropped 288 rupees at 14,842 rupees per 100 kg. Turmeric exports in February 2010 stood at 2,500 tonnes, down 19 percent from a year ago, according to data from the Spices Board.

CUMIN: India's cumin futures softened as traders opted to book profits after prices rose for five straight sessions, gaining nearly 3 percent, and on weak overseas demand, analysts said. "June contract is not likely to go below 12,100 rupees. Demand is supportive at lower levels. Stocks are very poor," said a trader from Unjha.

The most active June cumin contract was down 0.61 percent to 12,292 rupees per 100 kg. Production in 2010 is seen rising to 2.9 million bags of 60 kg each from 2.7 million bags in 2009, a poll of eight traders and exporters showed on April 19.

At Unjha, the benchmark spot market in Gujarat, cumin dropped 27 rupees at 12,657 rupees per 100 kg. cumin exports in February 2010 dropped 17 percent to 2,500 tonnes on year, the Spices Board said.

PEPPER: Indian pepper futures were down on selling pressure at higher levels driven by dull overseas demand, analysts said. The most active June pepper contract was down 1.56 percent to 16,885 rupees per 100 kg. The contract has risen more than 7 percent in the last 11 sessions.

Pepper exports in February 2010 fell 3.22 percent to 1,500 tonnes on year, the Spices Board said. Overseas demand for the Indian origin pepper is weak because prices are at a premium compared with other competing countries in the international market, said analysts. Spot pepper inched up 6 rupees to 16,739 rupees per 100 kg in Kochi, a major trading hub in Kerala.

Cotton exports rise as ban lifted

GUNTUR, May 23: Lifting of ban on cotton exports by the Centre led to increase in the exports. Cotton exports are expected to touch 90 lakh bales this year because demand for cotton is increasing in international market.The traders, who till now exported 74 lakh bales, are still getting orders from countries like Indonesia, Mexico, China and Bangladesh.

     The Central government has lifted the ban on cotton exports in response to representation made by the Andhra Pradesh Cotton Association leaders led by its president G. Punniah Chowdary, who met Union minister of state for textiles Panabaka Lakshmi, union minister for textiles Dayanidhi Maran, union minister minister for commerce Anand Sarma in Delhi.

     To mount pressure on the Central government, 1,200 ginning mills in the state were closed for two days as a protest against the ban on cotton exports.After lifting of the ban on May 21 by the Centre, the demand for cotton is increasing in domestic market which led to hike in price to Rs 3,100 per quintal from Rs 2,800. If the same situation continues, traders expect the price to reach Rs 3,400 per quintal very soon.Last year, the traders exported 35 lakh bales, less than half of produce exported till now this year.

     As the farmers are getting a remunerative price, sowing area of cotton is expected to increase during this year.Andhra Pradesh Cotton Association president G. Punniah Chowdary said, “Lifting of ban on cotton exports led to increase in price of cotton in domestic market. As a result, the sowing area of cotton will increase. The Centre is also considering the revival of incentives to cotton exporters.”

Indian chick pea gain on low-level buying

MUMBAI: India's chick pea futures rose by 1 per cent on Tuesday afternoon on buying interest at lower levels supported by spot demand in chana dal, analysts said. "Demand is picking up in the spot market arrivals will decline in the coming days. Spot prices are not likely to go below Rs 2,100-2,050," said Mehul Agrawal, analyst at Sharekhan Commodities.

The most active June futures contract on the National Commodity Derivatives Exchange was up 0.83 per cent at Rs 2,197 per 100 kg. In NCDEX accredited warehouses, chana stocks rose by 1,044 tonnes to 45,440 tonnes as on May 17, data on the exchange website showed. Estimates of higher output and ample stocks, however, limited the gains, said analysts.

In the Delhi spot market, chana inched up Rs 7 to Rs 2,150 per 100 kg. According to the third advance estimates, the production of chana (gram) in 2009/10, is likely to be 7.38 million tonnes against the actual production of 7.05 million tonnes last year, official data showed on Wednesday.

Pepper seen weak on sluggish demand

MUMBAI: Cumin futures are likely to remain steady on Monday as lacklustre export demand and hopes of higher output are seen weighing on prices, analysts said. The benchmark June cumin contract ended at 12,292 rupees per 100 kg, down 0.71 percent in the previous session.
Overseas buyers are staying away, waiting a further fall in prices on the higher output view, traders said. Production in 2010 is seen rising to 2.9 million bags of 60 kg each from 2.7 million bags in 2009, the poll of eight traders and exporters showed on April 19. Cumin exports in February 2010 dropped 17 percent to 2,500 tonnes on year, the Spices Board said.

PEPPER: Pepper futures to remain weak during the day on sluggish overseas demand, analysts said. The benchmark pepper June contract ended lower by 0.35 percent at 16,924 rupees per 100 kg in the previous session.

Pepper exports in February 2010 fell 3.22 percent to 1,500 tonnes on year, according to data from the Spices Board. India's pepper output in 2010 is expected around last year's levels, but prices are unlikely to fall sharply in coming months due to low carry-over stocks, a Reuters poll of eight traders found.

TURMERIC: Turmeric futures are expected to trade higher in the initial hours of trade on encouraging overseas demand and low stocks, analysts said. The June turmeric contract gained 1.98 percent to end at 14,810 rupees per 100 kg in the previous session.

Turmeric exports in February 2010 stood at 2,500 tonnes, down 19 percent from a year ago, according to data from the Spices Board. Arrivals usually start in mid-January in small quantities, gain momentum from March and continues through June.

India oilseeds, soyoil seen weak on tepid demand

MUMBAI: Indian oilseeds and soyoil futures are likely to open lower on Friday tracking weakness in overseas markets and as demand remained sluggish in the domestic spot markets, analysts said.

Malaysia palm oil futures were trading 0.20 percent lower at 9.21 a.m. Rapeseed harvest in India, the world's top edible oils buyer, is likely to be 6.59 million tonnes, down from the estimated 7.43 million in February and the actual production of 7.2 million tonnes last year, official data showed.

June rapeseed contract on the National Commodity and Derivatives Exchange ended 0.07 percent up at 504.55 rupees per 20 kg.

The June soybean contract finished 0.46 percent up at 1,971.5 rupees per 100 kg, while the June soyoil contract fell 0.17 percent to 448.85 rupees per 10 kg in the previous session.

India's April oilmeal exports slumped 14.35 percent from a year earlier, falling for the sixth straight month, on low domestic crushing and as a strengthening rupee weakened demand from Vietnam and China, a trade body said.

Sugar firms ask govt to quickly fix ethanol price

PUNE/KOLKATA/LUCKNOW: Sugar manufacturers are waiting for a government notification which will direct oil companies to buy ethanol at a fixed price for six months.

Indian Sugar Mills Association president Vivek Saraogi said, “Sugar manufacturers have committed ethanol to the government on a long-term basis at a price to be fixed by an expert committee.” He said the industry can supply ethanol for up to 10% doping based on a normal sugar production estimated at 24-25 million tonnes. At an emergency meeting in Mumbai, the Ethanol Manufacturers Association, the Maharashtra Distillers Association and the Sakhar Sangh, the apex body of Maharashtra’s cooperative sugar industry, said neither the petroleum ministry nor the oil companies have made any move to take the government decision further.

The decision by the central government to fix the price of ethanol at Rs 27 per litre ex-factory is for the July-December 2010 period, after which it comes up for review. Narendra Murkumbi, vice chairman and MD, Shree Renuka Sugars, said, “The sugar industry is committed to supplying ethanol as long as the prices are viable and it is a long-term contract.” OP Dhanuka, CMD, Riga Sugar Co, added, “Most sugar manufacturers have stopped production of ethanol in the absence of buyers as the government is yet to take a call on the ethanol price.”

Industry players said liquor and chemical industry lobbies are opposed to blending as they fear that any diversion of molassses to fuel-ethanol production will push up raw material prices. The argument, sugar industry sources say, does not hold good.

Copper slips after China data, retreat in risk appetite

LONDON: Copper eased in Europe on Tuesday as Chinese data lifted expectations for monetary tightening, and as a relief rally in higher-risk assets sparked by a $1 trillion package to prevent the spread of euro zone debt issues faltered. A rise in Chinese annual inflation to an 18-month high in April showed that the government still has its work cut out to keep the world's third-largest economy from overheating.

"After very strong Chinese macro data, many people fear China will implement stricter monetary measures to deal with the overheated economy," said Commerzbank analyst Daniel Briesemann. "If China cools down its economy, then that should lead to lower imports, lower production and should definitely hurt metals prices." Elsewhere, investors are still sceptical countries like debt-laden Greece will be able to cut fiscal deficits smoothly. A reduction in risk appetite has led them to cash in gains in equities, oil, the euro and industrial metals on Tuesday.

The dollar rose against the euro on Tuesday, with the single currency giving up some gains made the previous day on news of a package to prevent the spread of the European debt crisis, as scepticism remained over Greece's ability to cut its large fiscal deficit smoothly. Oil fell towards $76 as a stronger dollar signalled lingering doubts about a resolution to Europe's debt crisis, while Chinese inflation data raised concern about potential monetary tightening measures.

China's production of refined copper rose 6.1 percent in April on the month, while output of primary aluminium inched up 0.1 percent to rack up its second-highest monthly output on improved power supplies. The European Union has imposed provisional anti-dumping duties of up to 20.6 percent on imports of aluminium wheels originating from China following a complaint of unfair competition from European manufacturers.

Three-month copper on the London Metal Exchange was trading at $6,991 a tonne at 0703 GMT compared with $7,120 at the close on Monday. Aluminium was at $2,097.25 a tonne from $2,144. Copper support at $6,980, resistance at $7,212, 14-day RSI at 31.3. Aluminium support at $2,100, resistance at $2,178, 14-day RSI at 35.6.

PEC floats bids for importing 12,000 tons of edible oil

NEW DELHI: State-owned trading company PEC Ltd has invited bids for import of 12,000 tons of RBD Palmolien (edible grade) to be delivered by June.

Bids will close on May 14, the company said on its website, adding that the decision will be taken on May 17.

The company has also specified that the oil should be sourced from Indonesia and/or Malaysia and has to be shipped to the Chennai and Tuticorin ports.

Quantity of the oil to be imported for the port of Chennai is 8,500 tons and 3,500 tons for Tuticorin, the tender notice said.

Spices likely to remain firm on demand; low stocks

MUMBAI: Cumin futures are likely to trade firm in the initial hours of trade on Monday, supported by low stocks, squeezed supply and some local demand, analysts said. The benchmark June cumin contract ended at 12,815 rupees per 100 kg, up 1.52 percent in the previous session. Cumin exports in February 2010 dropped 17 percent to 2,500 tonnes on year, the Spices Board said.

PEPPER: Pepper futures may trade higher on limited supply and poor stocks but weakness in the overseas demand may cap gains, analysts said. The benchmark pepper June contract ended higher by 1.66 percent at 16,630 rupees per 100 kg in the previous session. Pepper exports in February 2010 fell 3.22 percent to 1,500 tonnes on year, the Spices Board said on Thursday. India's pepper output in 2010 is expected around last year's levels, but prices are unlikely to fall sharply in coming months due to low carry-over stocks, a Reuters poll of eight traders.

TURMERIC: Turmeric futures may trade higher on robust overseas enquiries, domestic demand and restricted arrivals as farmers hope further rise in prices, analysts said. The May turmeric contract gained 3.75 percent to end at 15,380 rupees per 100 kg in the previous session. Turmeric exports in February 2010 stood at 2,500 tonnes, down 19 percent from a year ago, according to data from the Spices Board. Arrivals usually start in mid-January, gain momentum from March and continues through June.

India oilseeds, soyoil futures seen weak

MUMBAI: Indian oilseeds and soyoil futures are likely to fall on Friday, depressed by a sharp drop in overseas markets and subdued export demand for oilmeal, analysts said.

US soybean, corn and wheat futures fell in response to uncertainty caused by a suspected trading glitch that saw US stocks plunge 9 percent in afternoon trade before clawing back some losses.

Malaysian palm oil futures were trading 1.11 percent lower at 8:25 a.m.

India's April oilmeal exports slumped 14.35 percent from a year earlier, falling for the sixth straight month, on low domestic crushing and as a strengthening rupee weakened demand from Vietnam and China, a trade body said. See

The May soybean contract NSBK0 on the National Commodity and Derivatives Exchange ended up 1 percent at 2,018.5 rupees per 100 kg, while the May soyoil contract NSOK0 rose 0.53 percent to 447.85 rupees per 10 kg in the previous session.

The May rapeseed contract NRSK0 finished 0.40 percent higher at 494.95 rupees per 20 kg.

Govt plays safe, rules out wheat exports till home prices tamed

NEW DELHI: The Centre is likely to consider wheat exports only after the third advanced estimates of Rabi crop are out and food inflation cools off, overflowing godowns notwithstanding.

By that time the government also expects clarity on grain outgo on account the proposed food security law through a better fix on the number of eligible consumers, a government official said.

“The commerce department is in favour of wheat exports because of adequate availability but the government cannot take a decision before it is totally sure that the country’s needs in the coming months are covered,” an official from the commerce department told ET.

He added that wheat exports was a sensitive subject and the government did not want the public to panic. “We are waiting for the Rabi crop to come in and food inflation to fall further before deciding on allowing exports,” the official said.

The caution on exports is highlighted by low global wheat prices, making exports an economically unviable proposition at present.

Adding to the increased caution over any “premature” decision on wheat exports could also be the US Department of Agriculture’s (USDA) lowered wheat output estimate for India. It cut production estimate by 3.65% to 79 million tonnes for the current crop year from 82 million tonnes on crop damage due to extreme heat.

The third advance estimates are considered relatively more accurate since they take into account not only the harvest projections for rabi and kharif seasons of the year, but also the market arrivals of the merchandise.

The second advance crop production estimates had earlier pegged India’s food grain production for 2009-10 at 7.51% lower than the previous year. It placed wheat out put at 80 million tonne which is comparable to production in the previous year.

The third advance crop production estimates are expected by June. In June, the Met Department (IMD) is also expected to come out with its detailed second stage monsoon forecast indicating the kharif acreage and output projections for the year.

India had put a ban on exports of wheat in February 2007 following low production and a need to build adequate foodstock. The ban stayed on as food prices started moving up following a drop in world production.

Although food inflation has softened a bit by coming down to 16.6% from a high of about 20% a few months back, the government wants it at a more comfortable level before provisioning for exports. “We are hopeful that by next month, food inflation would come down further,” the official said.

Meanwhile, India’s stock of wheat in the central pool held with Food Corporation of India and state agencies stood at a high 161.25 lakh tonne against the buffer norm of 40 lakh tonnes and strategic reserve of 30 lakh tonnes by end March. The caution on exports is underpinned by the lack of clarity on the food law grain outgo.

Coffee exports jump 42 pc in Jan-Apr 2010

NEW DELHI: Coffee exports from India, Asia's third biggest producer, rose by 42 per cent to 1,00,574 tonnes in the first four months of 2010 on strong global demand and domestic supplies, according to the Coffee Board of India.

In value terms, coffee exports surged to Rs 1,025 crore during the January-April period of 2010 from Rs 763.38 crore in the same period in 2009, it said.

"Exports have increased due to a rise in demand for robusta variety of coffee and increase in the re-export of processed coffee," an Coffee Board official told PTI.

The country had shipped only 70,843 tonnes of coffee in the same period last year as demand lowered due to global economic recession, he said.

According to the data released by the apex body for promotion and marketing of the crop, export of Arabica stood at 21,734 tonnes, while the shipment of robusta, which is stronger in caffeine content than Arabica, was about 51,173 tonnes during the January-April period of 2010.

The overseas sale of instant coffee stood at 8,670 tonnes, whereas the re-export of processed-coffee was about 18,871 tonnes in the review period.

Companies such as Tata Coffee, Nestle and NKG Jayanti Coffee Pvt Ltd shipped maximum quantity to Italy (27,970 tonnes), Russia (12,646 tonnes) and Germany (9,442 tonnes).

Coffee Exporters Association President Ramesh Rajah said, "Exports are back to normal now as compared to last year. There have been good shipments from December 2009 up to April, thanks to improved demand and higher domestic crop."

However, the big concern is whether India will be able to continue with higher shipments in the coming months with stronger rupee, he noted.

"Strengthening of rupee and hike in ocean freight rates may hit shipments adversely despite higher domestic supplies," he said.

According to the Coffee Board, total output is estimated to be higher at 2.89 lakh tonnes in the 2009-10 coffee year, against 2.62 lakh tonnes last season. The coffee year runs from October to September.

In the October-April period of the 2009-10 year, the country's coffee exports rose to 1,45,352 tonnes, against 1,06,991 tonnes in the same period last year