Tur farmers seem to be breathing a sigh of relief as prices of the pulse have recovered 30% in the past six-seven sessions–15% in just two days since the government capped imports over the weekend. Government had restricted imports of tur to 200,000 tonne per annum, following which prices of the pulse surged by 400-500 rupees per 100 kg to cross 4,300 rupees in major markets. While trading activity remained subdued due to Raksha Bandhan and lunar eclipse, prices of desi tur rose to four-month high of 4,400-4,500 rupees per 100 kg at major trading centres such as Nagpur, Latur, and Akola in Maharashtra.
MMTC invites bids for sale of 3,734 tonne urad, 242 tonne tur.
MMTC Ltd has floated a tender to sell 3,734 tonne urad and 242 tonne tur. The pulses available at Chennai Central Warehousing Corp and National Collateral Management Services warehouse. Bids must be submitted on Aug 16, and opened the same day. The bids remain valid for acceptance till Aug 23.
Govt limits tur import at 200,000 tonne to support prices.
The government has capped import of tur at 200,000 tonne per annum in a bid to to limit the fall in local prices. The restrictions apply until 2018. The import restrictions though not apply to the government import commitments under bilateral trade agreements and other pacts. The move comes in the wake of local tur prices falling to fresh lows due to a large crop. Robust government procurement also did not support prices. There were concerns that domestic prices may fall even further, as Africa is set to harvest a bumper crop this year, and the landed cost of the new African tur crop would be much lower than the domestic price. The government had earlier this year imposed 10% import duty on tur to check the fall in prices. The import duty, however, was not of much help, as tur is imported primarily from Myanmar and African countries, which can circumvent India import taxes due to bilateral pacts.
Chana futures up on NCDEX on demand from dal millers.
Futures contracts of chana rose on the NCDEX owing to improved demand from dal millers and stockists. On the NCDEX, the most-active September contract of chana traded up 0.33% from previous close. The government is planning to lift a decade-long ban on export of pulses, which is also seen supporting prices.
Groundnut acreage 3.5 million ha as of Thu, down 13% on year.
Farmers in the country had sown kharif groundnut across 3.49 million ha as of Thursday, down 12.9% on year. In Gujarat, the largest producing state, groundnut acreage was 1.61 million ha, up 2.6% on year, following favorable rains in the state. However, a fall in area sown under groundnut seed in other key producing states of Andhra Pradesh and Karnataka, following deficit rains, pulled down overall acreage in the country.
NCDEX mustard seed up on export demand for meal.
Mustard seed contracts were up on the NCDEX owing to a pickup in demand for mustard meal from overseas buyers. On the NCDEX, the most-active September contract was trading up 0.81% from previous close. Seasonal demand for mustard oil during the rainy season also supported seed prices.
Soybean acreage 9.9 million ha as of Thu, down 10% on year.
Acreage under soybean across the country was at 9.9 million ha as of Thursday, down 10.4% from the year-ago period. Sowing under soybean fell this year following a decline in acreage in Madhya Pradesh, the largest soybean-producing state, due to poor rains in the last fortnight. In Madhya Pradesh, acreage of the crop was at 4.71 million ha, down from 5.36 million ha in the previous year. The area under soybean in the state is lower so far because farmers chose to sow other remunerative crops such as cotton, urad, and moong, as soybean fetched poor returns in 2016-17.
Soybean contracts up on NCDEX tracking CBOT.
Futures contracts of soybean traded up on the NCDEX tracking the CBOT. The most-active August contract traded up 1.5% from the previous close. Contracts of soybean rose on the CBOT due to short covering by market participants after prices fell last week. Bargain buying by domestic oil millers and crushers after a recent fall in prices also supported contracts of soybean on the NCDEX.
Tamil Nadu seeks Centre help to source sugar from UP.
Tamil Nadu sugar mills want 600,000 tonnes from mills in Uttar Pradesh for supply in the coming season but want central government help on the transport cost. Sugar output in Tamil Nadu has been declining for some years. With the deficient rain this season for the fourth year in a row, mills in Tamil Nadu are estimating only 550,000 or 650,000 tonnes of output for 2017-18, as against 2.4 million tonnes in 2011-12. In sugar season 2016-17, the state reported output at 1.05 MT, almost equivalent to its annual consumption. The UP mills agreed, but were uncomfortable with the transportation cost of Rs 3-3.5 a kg. Mills in Tamil Nadu cannot take this burden; it would inflate prices in the state. Therefore, seek involvement of Isma.
India sugar tad up in Delhi on demand from northeast; flat in west.
Prices of sugar remained largely flat across markets barring north India, where prices inched up due to improved demand from north-eastern states. Most of the demand is coming from north-eastern states as markets in the western region were largely shut due to Raksha Bandhan festival and Lunar eclipse, which is considered inauspicious among traders. Government warning of re-imposing stock limits if prices rise further seems to have kept traders cautious and away from aggressive trade.
Govt may allow 300,000-500,000 tonne sugar import at 25% duty.
The government is likely to allow import of 300,000-500,000 tonne sugar at a concessional import duty of 25% to augment supply during the upcoming festival season. The proposal to this effect (allowing import at 25% import duty) might be put up to the Cabinet for approval later this week. Government was planning to tweak the conditions of advance licence scheme giving more time to sugar mills and refineries to fulfil the obligation of re-exports.