India Develops New Pusa Basmati Rice Variety

Indian scientists have developed a new basmati (fragrant) rice variety in the Pusa line that has yields of around 6.5 tons per hectare, up about 44% from 4.5 tons per hectare yield of the popular Pusa 1121 variety.

The new variety, Pusa Basmati 1509, developed by scientists at the Indian Agricultural Research Institute (IARI), will be the second basmati rice variety introduced since the release of Pusa 1121. According to scientists, the new variety takes just 120 days to mature; compared to Pusa 1121’s 145 days, requires less water and has better cooking quality than Pusa 1121, claim scientists. Importantly, unlike Pusa 1121, Pusa 1509 does not shatter due to delay in harvesting.

The field trials of Pusa Basmati 1509 were carried out in October this year and the commercial cultivation is expected to commence in the next Kharif season (July to October), according to IARI.

The Pusa 1121 basmati rice variety was released for commercial cultivation by Indian scientists in 2003. Pusa 1121 is known for its extraordinary length of up to 9.5 mm and unique fragrance, and has since become hugely popular both among farmers and exporters. Today, the Pusa 1121 accounts for almost 60% of around 2.6 million hectares of total acreage under basmati rice cultivation in India, and about 70% of around 3.2 million tons of basmati rice exports.

Source: http://oryza.com

Export buying lends flavour to jeera

Jeera prices on futures market improved on fresh export inquiries, though spot jeera was stable.

According to market sources, upcountry and Bangladesh demand continued.

Trading activities are slow due to announcement of results to the Gujarat Assembly Elections.

A trader said that fresh inquiries are coming from Bangladesh for the Indian origin jeera.

Export demand should rise in the coming days as supplies from Syria and Turkey are negligible in the global market.

According to markets sources, about 75 per cent of the export target has been achieved due to a supply crunch in the global markets.

Higher stocks for delivery on the exchange warehouses may pressurize prices.

Source:-www.thehindubusinessline.com

Indo-Asean trade could touch $100 billion by 2015

The two way trade between India and the ten member ASEAN block could touch USD 100 billion by 2015 on the back of increasing economic engagement between the regions. 

Currently, the trade between India and Association of South East Asian Nations (ASEAN) stood at USD 80 billion. 

"We are aiming that the trade between the two sides will touch USD 100 billion by 2015," Commerce and Industry Minister Anand Sharma said while inaugurating 2nd India-ASEAN business fair here today. 

India and ASEAN, which have already implemented free trade agreement in goods, are expected to conclude the negotiations for the free trade pact in services and investment this week. 

Speaking on the occasion, Cambodian Commerce Minister Cham Prasidh said that: "We may be able to give you a good news tomorrow". 

He also expressed hope that negotiations for the Regional Cooperations and Economic Partnership (RCEP) is likely to be concluded by 2015. 

Trade ministers of all the ten ASEAN nations were present during the occasion. 

Srirat Rastapana, Thailand's Director General of Department of International Trade Promotion said the ongoing talks between India and Thailand for the market opening pact may be concluded by next month. 

"We are at the last leg of negotiations. We started with early harvest scheme (EHS). FTA will help to drive economic relationship bilaterally," he said. 

Besides, the free trade pact with ASEAN, India is negotiating market opening pact bilaterally with the members of the block. 

India has already implemented FTA with Singapore and Malaysia and is negotiating with Indonesia in this regard. 

SOURCE: THE ECONOMIC TIMES

Maize price in India by around 12%

Around 12 per cent increase has been seen in maize prices in India on the back of demand rise for Indian maize in export market. In the domestic market, maize prices have risen to around Rs 1,500 per quintal from Rs 1,350 last month.

The demand for Indian maize is on spurt in global markets as supply from Brazil has lagged temporarily due to port congestion.

The deficit rainfall has impacted acreage and yield in the current year, which will affect supply.

Prices are likely to remain high, unless Rabi output offsets some of the loss in production in Kharif season to support domestic demand till next year.

According to the first advance estimates for the running fiscal (2012-13), Kharif maize area this season stood at 73.68 lakh hectares compared to 73.88 lakh hectares last year.

Kharif maize production is estimated at 14.8 million tonnes, lower by 8 per cent from the previous year.

Maize is sown in both Kharif and Rabi seasons; with the Kharif season output comprising 75 per cent of the total production.

Source: Indiamart

Govt will continue with free export policy for rice, wheat, cotton: Anand Sharma

NEW DELHI: The Central government will continue with the free export policy for rice, wheat and cotton this year, as announced by Union Commerce Minister Anand Sharma. 

In September last year, the ban on export of non-basmati rice and wheat was lifted and exports were put on open general licence (OGL) due to bumper food grains production in the country. 

While addressing the All India Kisan Coordination Committee (AIKCC), Sharma said, “Due to higher production, the government has allowed export of rice, wheat and cotton. This will continue as we have enough supply.” 

The stable farm export policy is essential to ensure better income to farmers and the same has been communicated to Prime Minister Manmohan Singh. 

So far, the country has exported 10 million tonne non-basmati rice and over 3 million tonne wheat through private trade. 

Further, the minister said that the Indian wheat is dominating in the world market this year. An expected crop failure in the US and Ukraine has generated huge demand for India wheat and traders are fetching good price up to $ 328 a tonne. 

Source:India Mart 

India's wheat exports may touch record 5 million ton mark

India's wheat exports are pegged to touch a record level of 5 million tons in the 2012-13 marketing season on the back of all time high harvest and large carryover stocks, United Nation's body FAO said.

"In India, given the estimated bumper wheat harvest and larger carryover stocks, exports are anticipated to reach a record level of 5 million tons in 2012-13," Food and Agriculture Organisation (FAO) said in its latest Crop Prospects and Food Situation report.

Wheat marketing year in India commences in April and ends in March.

"Weather conditions at the start of the 2012-13 season have been generally favourable for planting of winter wheat, barley and secondary rice crop. In India, early official forecast for the 2013 wheat crop is set at a near average level of about 86 million tonnes," the report added.

The government has kept a target of 86 million tonnes of wheat in the 2012-13 rabi (winter) season. The country had harvested a record 93.90 million tonnes in 2011-12 crop year (July-June) due to good rains.

That apart, the government has a wheat stock of 37.65 million tons as of Dec 1, 2012, which is above the stipulated buffer and strategic stock requirement of 11.2 million tons as of January 1, 2013.

In July this year, the government had allowed export of 2 million tons of wheat from central pool stocks of Food Corporation of India (FCI) through central public sector undertakings (CPSUs) like STC, MMTCBSE 1.22 % and PEC.

Tenders for export of 1.73 million tons of wheat has been approved, out of which 8.06 lakh tons has been shipped.

Yesterday, Commerce Secretary S R Rao said that the Food Ministry will move a proposal for allowing export of an additional 2.5 million tons of wheat from the central stocks in order to ease the storage crunch being faced by the country due to an all time high production.

Source: Economic Times

Iran's new Currency exchange regulations hits Indian Exporters

Indian exporters are having a tough time exporting to the Islamic republic caused due to the new exchange rate strategy adopted by Iran for importers.

Iran is passing through an acute economic crisis, with its currency plunging to record low levels and prices of food articles escalating. Iran's currency, the rial, has fallen by about 40 per cent against the dollar since August.

As a result, Iranian banks have become extremely reluctant to issue letters of credit (LC) for importers, a crucial link to the newly-established payment mechanism between India and Iran.

According to Indian exporters, Iranian banks have been seeking up to 100 per cent margin money for issuing LCs to their importers, which have shrunk the order book of Indian exporters.

Iranian banks have been especially reluctant to issue LCs for import of non-essential commodities, which have hit exports in sectors such as engineering goods from India.

"Since Iran is going through an exchange crisis, importers of priority sector goods like medicine and pharmaceutical products are getting LCs. However, for other sectors, it is difficult to get LCs," said Suranjan Gupta, director, EEPC India.

  

"We are not getting sufficient buyers in Iran for exports, as due to the currency crisis, banks in Iran are very reluctant to issue LCs," said P K Shah, former president, Federation of Indian Export Organisation.

Source: Business Standard 

INDIA RICE PROCUREMENT SOARS, MANY REGIONS UNTOUCHED

India’s state agencies and Food Corporation of India (FCI) have together procured around 12.52 million ton of rice in the 2012-13 procurement season that started from October till Dec 05, almost 5.9% more than the same period last year.

However, the data showed that procurement has not started in Bihar, Jharkhand, Orissa and West Bengal, all big rice producing states.

Leaders of major political parties raised the issue of low procurement of rice in eastern India, one of the major producing regions, in Parliament.

The government assured that a team would be sent to assess the situation and take corrective action. Overall, of the 22.45 million ton of rice that has arrived in the markets across the country, almost 18.22 million tons have been procured by the government.

India annually procures around 35-38 million ton of rice for the central pool to distribute it at cheap rates for the Public Distribution System (PDS). In 2012-2013, the government has targeted to procure around 40.1 million ton of rice for the central pool, around 15% higher than the actual procurement of 2011-2012.

As on November 1, 2012, the government has around 68.3 million ton of food grains in the central pool which included wheat and rice, while the storage space available with it was around 71.4 million ton, which also included covered area plinth and storage's with state governments.

Courtesy: Business Standard

India set to be the fastest growing trading nation

              Rising bilateral trade with China, growing consumer wealth and high confidence level among its traders will push India to the top league of trading nations beginning 2013 and it is set to retain the fastest growth rate till 2020, said HSBC.

"The growing Indo-China bilateral trade is set to increase significantly and the country will be the fastest expanding market for Chinese products, with import growth averaging 20 per cent annually during 2013-15 and 17 per cent during 2016-20, while exports clipping at 23 per cent during 2013-15 and 19 per cent during 2016-20," said the HSBC trade forecast released on Tuesday. India tops the tables for all 23 markets surveyed as either their fastest import or export growth partner out to 2020, it said.

The country also tops the HSBC trade confidence index apart from having the most promising global outlook with 61 per cent of traders expecting to see growth. "With a score of 135, India is the most confident country. Optimism has improved in the past six months with 71 per cent of importers and exporters surveyed expecting trade volume to increase and another 24 per cent anticipating business to remain at current levels," said the report that covered 5,800 exporters, importers and traders over the past six months in 23 markets.

This upside to trade will be backed by the growing consumer wealth that will push the country to be the fastest growing trade market - import or export or both - among the 23 largest trading markets, according to the forecast. The optimism comes from a dual speed trade rebound as South-South corridors become more established, driving growth to 2015 before being rejoined by the developed world in the later part of the decade, notes the report.

As per the report, India and China will be joined by emerging trading nations like Vietnam, Indonesia, Egypt, Turkey, Mexico and Poland to record significant trade growth in the next three years.

Courtesy: One India

U.S. Firm to Invest U.S.$210 Million in African Agric Export

A United States firm, Carlyle Group, is leading a $210 million private equity investment in the procurement and export of agricultural commodities from Africa to Asia, Europe and America.

Other minority investors include Pembani Remgro Infrastructure Fund, a South Africa-based private-equity firm and Standard Chartered Plc, Africa Private Equity division.

The $210 million would be invested into Export Trading Group, a Tanzania-based agricultural company that sources commodities from Africa’s small farmers for export.

Making the announcement in Washington recently, the Managing Director of the Carlyle sub-Saharan Africa Fund, Genevieve Sangudi, disclosed that this was the first investment of its new sub-Saharan Africa Fund.

She revealed that the sub-Saharan Africa Fund, targeted at $500 million, is a reflection of how private-equity firms are trying to position themselves to tap into the continent’s new consumers as well companies that are expanding on the back of demand for food and energy from the rest of the world.

“Competition among global rivals is heating up in Africa, as investment returns diminish in more developed parts of the world,” she said.

Sangudi noted that Africa’s prospects appear more appealing than in the past, largely because it is expanding faster than most regions outside Asia and the Middle East. The continent’s young people are also making their way to the cities and stoking consumer demand.

She disclosed that the Carlyle Group is a global alternative asset manager with more than $156 billion in assets under management across 99 funds and 63 funds of funds vehicles.

The Export Trading Group, which trades 25 different commodities, from cashews to coffee, said that with the injection of $210 million fresh capital coming on the heels of $74 million earlier invested by Standard Chartered it is set to double sales.

The company revealed that it earned $884 million in revenue in the fiscal year ended March 31, and projects that figure will rise to $1.5 billion next year. 

Managing Director of Export Trading Group, Ketan Patel, disclosed among other things that the Group expects to use the fresh capital from Carlyle and others to expand transport and distribution networks in Africa to get more farm-grown food onto the continental and global markets, and also acquire more warehouses in Asia, where it buys rice and fertilizer.

In its recent assessment of the continent’s growth, the International Monetary Fund had estimated that sub-Saharan Africa’s economy would expand by 5 per cent this year.

Courtesy: Mask Africa

LIVE RICE INDEX

INDIA:

Indian white rice prices have softened this week as harvesting of the main (kharif ) crop has progressed well following dry weather, thus increasing availability. IR 64 5% broken is currently listed at US $420 PMT FOB and PR 106 5% broken at US $480 PMT. Demand for Indian white rice remains slow, although unconfirmed reports suggest that China’s COFCO has agreed to buy 100,000 MTS of various qualities of white rice from India. 

Indian Basmati exports between April and October 2012 totalled 1.92 million MTS, up 17% on the corresponding period last year as a result of increased demand from traditional buyers in the Middle East and sales to new buyers in Africa. However, sales to India’s third largest Basmati export market, Iran, may soon be reduced as Iran is planning to rework its multiple exchange rate system in order to negotiate the various trade sanctions imposed upon the country.

VIETNAM:

Vietnamese prices are softer again this week, despite supply remaining very tight and exporters still having to fulfill their commitments to Bulog of Indonesia, Bernas of Malaysia and West African Buyers. 5% broken white rice is currently listed at US $430 PMT FOB, whilst 25% broken stands at US $400 PMT FOB. There has been a lot of speculation as to what is causing the prices to soften, although there is certainly less demand from local buyers than there has been in recent months. 

Some exporters may also be eager to clear their warehouses due to fears of flooding which could damage their stock and as they begin to prepare their facilities for 2013 crop arrivals (although these are unlikely to begin until February at the earliest).

PAKISTAN:

Pakistani white rice prices have remained stable this week as the market has reopened quietly following the Muharram Ul Haram New Year holidays. IRRI-6 5% broken white rice is unchanged at US $435 PMT FOB. The attention of the market is largely focused on East Africa and China as exporters are hoping for a significant increase in buying when Chinese importers are allocated their next tranche of import licences in January. Purchases of small volumes of 100% broken white rice have continued from West Africa and a single shipment is expected to be loaded from the first week of December.

USA:

The market in the south has been quiet following the Thanksgiving holiday, although domestic demand has continued for small volumes; the Kansas City Commodity Office will tender for 1,450 MTS of U.S. #5, 20% broken white rice and a further 390 MTS of U.S. #2, 7% broken white rice on 4 December. The start of the hunting season has led to a quietening of the market, although mills are booked through to the New Year largely because the 79,000 MTS awarded under the Colombia Tariff Rate Quota is required to be shipped by 31 December. Long grain prices remain unchanged, with U.S. #2, 4% broken at US $620 PMT FOB and U.S. #1, parboiled 4% broken at US $625 PMT FOB. Additional offshore demand has come from the European Union as the first tender of the January 2013 Tariff Rate Quota has been issued, totalling 9,681 MTS of milled rice of U.S. origin.

SOUTH AMERICA:

Prices in South America are softer this week, both Argentine and Uruguayan 5% broken white rice varieties are now quoted at US $630 PMT FOB. Although the Brazilian government continues to attempt to ease the situation by auctioning paddy from its stocks, the significantly smaller crop harvest in the 2011/12 season compared to 2011 could ultimately mean that Brazil becomes a net importer of rice this year. Estimates suggest that Brazil’s total imports for 2012 are likely to reach at least 900,000 MTS which is a 50% increase from the year before.

Courtesy: Live Rice Index. 

Indian Govt. approves more exports of Rice & Wheat

The Cabinet Committee on Economic Affairs has approved the continuation of the unrestricted export of wheat and non-basmati rice.

This is in view of the adequate availability of wheat and non-basmati rice in the domestic market, an official statement said.

The proposal was moved by the Department of Commerce. Sources said additional wheat exports of up to 2.5 million tonnes (MT) would be allowed from the Government’s stocks.

The Government is sitting on a huge pile of wheat stocks pegged at 40.57 MT as of November 1 about thrice the buffer and strategic reserve at this point in time. The Government’s latest move would help fetch better realizations as global wheat prices have firmed up as drought in countries such as Russia, Ukraine, the United States and Australia has slashed output hurting supplies.

The Government had earlier allowed exports of 2 MT from the Central pool stocks, of which over 7.5 lakh tonnes has already been shipped out of the country. 

Courtesy: The Hindu Business

Global agricultural commodity prices likely to remain high

             Although global agricultural commodity prices have come off recent peaks, food price inflation remains a concern in developing countries; and over the next ten years, agricultural prices are expected to remain on a higher plateau even as energy price levels and volatility are seen to condition the outlook, according to the latest OECD-FAO Agricultural Outlook 2012-2021.

CEREALS:

As for cereals, stocks are expected to get tighter over time. The stock-to-use ratios will remain below historical averages, posing the risk of future price volatility. Interestingly, the Black Sea region will play a larger role in the world wheat trade. The Russian Federation, Ukraine and Kazakhstan are expected to become much more important sources of wheat export by 2021; but high production variability in this region may have implications for global trade and world price volatility, the report has cautioned.

Larger exports of rice are projected from the least developed countries in Asia while rice imports are to increase in Africa.

OIL SEEDS:

Oil seeds production and exports continue to be dominated by the traditional players, but emerging exporters such as Ukraine and Paraguay are expected to increasingly contribute to global export growth. China, the dominant importer, will account for more than half of total world imports. Brazil’s oil seeds production growth is expected to slow from 4.9 per cent to less than 2.0 per cent over the next ten years. As for sugar, food and fuel (ethanol) demand will sustain over the medium-term and help maintain prices at a high level. Production cycles will continue to characterize sugar markets in Asia, leading to occasional large trade fluctuations and price volatility. A key driver of the sugar market will be how Brazil’s cane crop is allocated between sugar and ethanol.

MEAT:

Meat consumption in developing countries is set to expand. Large Asian economies, crude oil exporting countries and Latin America where income gains are expected to be significant will drive demand for meats. Poultry meat will lead the anticipated growth as the cheapest and most accessible source of meat protein, overtaking pig meat as the largest meat sector by the end of the decade. Aquaculture is set to surpass capture fisheries in food consumption. Fish production is one of the fastest growing sources of animal protein. World fisheries and aquaculture production are expected grow by 15% over the next ten years. A 33% growth in aquaculture production will take it past capture fisheries as the primary source of fish for human consumption by 2018.

DAIRY PRODUCTS:

While developing countries will become most important producers of milk, a modest increase in consumption of dairy products – with the exception of cheese and fresh dairy products - is expected in developed countries. By 2021, the consumption of all dairy products is expected to increase by about 30 per cent in developing countries.

Interestingly again, developing countries under the lead of India and China are projected to overtake developed countries in milk production by 2013.

Courtesy: The Hindu Busines