Area under urad crop this kharif season was down nearly 29% on year at 2.22 mln ha. In Madhya Pradesh, the largest grower, area under urad was down 30.3% on year at 1.13 mln ha as farmers shifted to paddy.
Tur acreage down 10.2% on yr at 2.86 mln ha.
Area under tur across the country was down 10.2% on year at 2.86 mln ha. Many farmers in Madhya Pradesh, one of the largest growers of tur, have shifted to paddy this year as rains have been good and due to attractive returns.
Sugarcane acreage up 1.6% on year, but unchanged on week.
Sugarcane acreage in the country was at 5.05 mln ha, slightly higher than 4.97 mln ha a year ago, but unchanged from a week ago. In Uttar Pradesh, which has emerged as the largest sugar producer in the past two years, cane acreage was the highest at 2.31 mln ha, compared with 2.26 mln ha a year ago. In Maharashtra, another major grower, the area under sugarcane was 1.3% higher on year at 949,000 ha, the data showed. It was also unchanged from a week ago.
India Sugar down in north India on poor demand, steady in Kolhapur.
Prices of sugar fell in the key wholesale markets of north India due to poor demand from bulk buyers. Medium-grade sugar was sold at 3,530 rupees per 100 kg in Delhi and at 3,495 rupees in Muzaffarnagar, both down 10 rupees from the previous close
ICRA says cane fair price hike may affect margins of sugar mills.
The Centres move to increase fair and remunerative price of sugarcane to 275 rupees per 100 kg for 2018-19 (Oct-Sep) is likely to raise the cost of sugar production and affect margins of mills. While the effective hike is just 2.5% higher on year, “this is likely to result in margin pressures for sugar mills as well as the increase in cane arrears. Cane fair price in 2018-19 will be linked to a basic recovery rate of 10%.
Sources say govt inspects sugar cos on sale quota, buffer compliance.
The government has carried out physical inspection in some sugar mills in Uttar Pradesh and Maharashtra to ensure their compliance to the Centres orders of quota on domestic sale, floor price of the sweetener, and creation of a buffer stock. The government had last week sent inspection notices to mills in states, including Uttar Pradesh and Maharashtra to check that they are following orders. In Uttar Pradesh, inspection notices were sent to Modi Sugar Mills, Bajaj Hindusthan Sugar, Dhampur Sugar Mills, Mawana Sugars, DCM Shriram.
Punjab to pay 5,000 rupee/ha subsidy on maize farm input this kharif.
In order to encourage farmers to grow maize instead of paddy and check the fall in ground water level, the Punjab government has announced a subsidy on farm inputs for the coarse grain in 2018-19 (Jul-Jun) kharif season. The state government has also announced a subsidy of 120 rupees per kg on purchase of maize seeds. The state government is promoting cultivation of maize in place of paddy under the crop diversification scheme. Groundwater level in 32% area of the state has fallen below 20 mtr from 2 mtr in 2000.
Kharif maize area flat on year at 6.1 mln ha.
Maize sowing in the country has gained momentum, with total area under the coarse grain rising to 6.13 mln ha from 5.11 mln ha as on Jul 12. Maize acreage in the country was largely unchanged from the year-ago period and was only a tad lower from the normal of 6.15 mln ha, based on the average of the past five years. A pick-up in rainfall across the country has boosted planting of maize.
Kharif paddy area down 12% YoY at 15.7 mln ha.
Farmers across the country have sown paddy across 15.65 mln ha this kharif season, down 12.4% on year. Paddy acreage was also below the average area of 17.94 mln ha for the period. The fall in acreage can be attributed to lower planting in top growers Uttar Pradesh, West Bengal, Odisha and Punjab. Acreage in Punjab has declined as the state government is encouraging farmers to shift to coarse grains like maize from more water-intensive crops like paddy to check the fall in groundwater level.
Scanty rain hits rice farmers in Bihar, UP.
Despite prediction of normal monsoon this year, things are not looking good as far as eastern and North-eastern parts of the country are concerned. Several parts of Bihar and Uttar Pradesh, two main States of paddy crop, are facing drought-like situation due to shortage of rainfall. According to Agriculture Ministry data, compared to last year rice has been sown in 68 per cent less area in Bihar while UP has witnessed 35 per cent less area sowing under rice cultivation till date. Rain deficiency in Bihar is at 49 per cent whereas UP has recorded 48 per cent less rainfall in Eastern and Western parts.
Pakisatn Rice worth $ 2.073 bln exported in last year.
About 4.106 million tons of rice worth US$ 2.073 billion were exported during 12 months of last financial year as compared the exports of 3.523 million tons valuing US$ 1.606 billion of the corresponding period of last years. The exports of the above-mentioned commodity had registered 26.78 per cent growth during the period under review.
Canada agency lowers 2018-19 masur, peas output view as acreage down.
Canada’s farm agency has lowered its estimates for the output of masur and peas in 2018-19 (Aug-Jul) because of a fall in the area under the crops in the country. Production of masur in 2018-19 to fall to 2.38 mln tn compared with 2.5 mln tn, estimated in its June report. Area harvested under masur has been revised lower to 1.50 mln ha from 1.62 mln ha, the report stated. The output estimate for peas has been revised to 3.6 mln tn in the July forecast from 3.85 mln tn. Despite the fall in output, the agency has kept the price forecast for peas and masur unchanged from its June view at $220-$250 per tn and $420-$450 per tn, respectively, due to higher carry-over stocks. Average price for all grades (lentils or masur) and types is forecast to fall from 2017-18 due to Canadian and world supply. There is an expectation that import demand in the Indian subcontinent will continue to be similar to 2017-18. On the export front, shipments of masur and peas in 2018-19 from Canada are expected to remain steady because the July forecast report says an expected sharp fall in demand from India may be partly offset by record imports from China and the US. Canada agency Production estimate for chickpeas or chana has been revised higher in 2018-19 to 335,000 tn from 255,000 tn, as estimated in June. For 2018-19, the area seeded more than doubled from 2017-18 due to higher farm-gate prices received in the previous two years. Saskatchewan (the largest pulses growing region in Canada) is expected to account for 84% of the chickpea area. India used to be the largest importer of peas and masur from Canada but, with the government’s imposition of higher import duties in 2017, sourcing of the pulses from the latter have declined.
NCDEX chana hits 7-month high as miller demand rises.
August contract of chana on NCDEX hit a seven-month high of 4,390 rupees per 100 kg as demand from dal millers improved amid limited supply. The August contract of chana was up 49 rupees at 4,363 rupees per 100 kg. In benchmark Delhi market, prices of chana rose by 50 rupees to 4,650 rupees per 100 kg. Demand is expected to increase due to seasonal factors.
Barley crop decline in Black Sea countries will support world prices in 2018/19 season.
Global consumption of barley in the 2018/19 season will still exceed its production in the top growing countries. It is worth pointing out that export prices at the start of the new season are appreciably higher than last year, even though the harvest is in full swing in some of the major growers. At the moment, prices are supported not only by all-time low barley carryovers but also by concerns about the size of the new crop. Thus, the world trade volume in the current season will significantly depend on export potential of key exporting countries, in particular major players such as Ukraine and Russia.
Madhya Pradesh farmers asked to transplant paddy.
IMD’s Agrimet division has advised paddy growers in central Narmada region of Madhya Pradesh to transplant 20 to 21-day-old saplings to fields. Agrimet has also asked the farmers to monitor paddy against the attack of blast and brown spots on leaves and spray fungicide. Between Jun 1-Jul 19, Madhya Pradesh has received 334.3 mm of rainfall, 10% above the normal weighted average of 302.6 mm.
Wheat exports from Ukraine remained close to record in MY 2017/18.
June, the last month of MY 2017/18, traditionally saw a slowdown in wheat exports from Ukraine. 842 KMT was shipped abroad, or 17% less than in May (1 MMT) but 34% more than in June 2017 (627 KMT). The wheat export results of MY 2017/18 were slightly lower than in the previous season. Roughly 17.2 MMT of wheat was supplied to foreign markets that is just 1.6% below last season’s record of 17.5 MMT.
Kazakhstan grain stocks 9% higher last year’s.
Growers of all types held 5.19 MMT of cereals and pulses as of July 1, 2018, i.e. 8.6% more than on the same date a year ago (4.78 MMT). Wheat inventories as of July 1, 2018 were up 9.7% year-on-year at 4.58 MMT, including 4.15 MMT of milling wheat, 0.34 MMT of feed wheat and 0.1 MMT of wheat for seed. As of the reporting date, barley stocks totaled 306.4 KMT that is down 5% on the year, while those of corn were 28.9 KMT, rice – 41 KMT, rye – 9.7 KMT, oats – 64.6 KMT, buckwheat – 46.1 KMT, millet – 2.1 KMT.
Source says FCI sold 74,150 tn wheat in 1st open mkt sale of 2018-19.
Food Corp of India sold 74,150 tn wheat in the first round of auction under the Open Market Sales Scheme of 2018-19 (Apr-Mar). In the first round of auction for the year, the agency offered 1.48 mln tn of the food grain. Usually response to sales tender under the Open Market Sale Scheme remains subdued during Jul-Aug and peaks during the lean supply season Sep-Oct. Last year, Food Corp of India had sold only 20,000-30,000 tn wheat through its first auction under the scheme.
European wheat rises on rally in Chicago.
European wheat rose to its highest in more than a week, supported by a rally in Chicago and a lack of sellers amid uncertainty about the European harvest. December milling wheat, the most active position on Paris-based Euronext, unofficially closed up 3 euros, or 1.6 percent, at 189 euros ($220.36), its highest since July 6. Lack of selling interest, amid uncertainty over the size and quality of Europe’s harvest, continued to support French prices. The continuing French wheat harvest had reached northerly zones as a hot, dry spell favoured field work.
Delhi chana up on improved demand from millers.
Price of chana in Delhi rose due to improved demand from dal millers amid low arrivals. In Delhi, the benchmark market, chana was sold 50 rupees higher at 4,650 rupees per 100 kg. Arrivals of chana in Delhi were unchanged at 300 tn, but were less than the daily average of 525-600 tn. In Akola, prices were unchanged at 4,300 rupees per 100 kg. The August contract of chana on NCDEX fell 1.07% to 4,332 rupees per 100 kg.