The dual pricing model comprising sale of sugar at 50-60 rupees per kg to industrial consumers and at 30 rupees per kg to household buyers would be a win-win formula for all major stake holders. The mechanism would help cane-growing farmers get remunerative prices for their cane and also lead to a robust balance sheet for sugar millers. Major beverage manufacturers have reduced purchases and replaced sugar with organic sweeteners like stevia. The consumption of sugar in India is growing at 4% on year, and annual consumption is seen touching 30 million tonne by 2020. Of the total sugar consumption in the country, only 30% is consumed by household buyers, while 70% is used by industrial buyers. But none of these industrial bulk consumers reduced the prices of their products when sugar was fetching a low realization.
EID Parry contracted 64,000 tonne raw sugar import from Brazil.
EID Parry India Ltd has contracted imported 64,000 tonne of raw sugar from Brazil. Company crush about 10% less cane in 2017-18 (Apr-Mar) as availability in Tamil Nadu is lower this year because of drought. In 2016-17, the company had crushed 4.45 million tonne of cane, down from 5.59 million tonne crushed a year ago because of lesser availability. Shares of EID Parry India closed down 2.5% on the National Stock Exchange.
UP sugarcane arrears at Rs 3,500 crore, 90% owed by private mills.
Uttar Pradesh sugar mills owe farmers more than Rs 3,500 crore in arrears for the current crushing season, which has almost rounded off. About 90 per cent of these arrears, or about Rs 3,200 crore, are owed by the state private sugar mills, which number 91 of the total 116 functional units in the state. Against total sugarcane payables of Rs 25,381 crore for 2016-17 season, the mills have paid farmers nearly Rs 21,670 crore, thus leaving the remaining amount of about Rs 3,500 crore still to be settled. Last year, the total payables to UP cane farmers had stood at about Rs 18,000 crore, which have increased to over Rs 25,000 crore, a jump of nearly 40 percent, although the cane price was also higher this season. The state cane price effective for the current season was earlier hiked by Rs 25 from Rs 280/quintal to Rs 305/quintal for normal variety.
Sugar prices seen up as Brazil cane output may fall.
Prices of sugar in global markets are expected to rise in the year ahead due to a likely fall in sugarcane production in Brazil. The company goes with the Brazil sugarcane industry association estimate of cane-crushing at 585 million tonne sugarcane in 2017-18, down 3.7% on year. Strong possibility of El Nino phenomenon in the year and eventual heavy rains would take a hit on cane production. The Centre-South region of Brazil which produces 90% of the country total sugar output produced 35.63 million tonne sugar during 2016-17 (Apr-Mar), up 14.1% on year.
India Sugar poor demand pulls down prices in key spot markets.
Prices of sugar fell in the key wholesale markets of the country due to sluggish demand from bulk buyers. Medium-grade sugar was in Delhi in Muzaffarnagar, both down 10 rupees. In Mumbai and Kolhapur, prices fell by 10 rupees per 100kg. On NCDEX too, sugar futures were in the red. The benchmark July contract was down 0.2%.
Jaipur barley high on shrinking supply.
Jaipur barley high on shrinking supply.
Research body cuts view for EU barley crop.
Research body cuts view for EU barley crop.
NCDEX wheat down as traders continue to book profits.
Futures contracts of wheat fell nearly 1% on the NCDEX as investors continued to book profits for the second straight day after prices rose in six trading days. June contract of wheat on the NCDEX was down 0.7% from the previous close. July contract also traded 1.0% lower at 1,643 rupees. Prices had risen earlier due to lower supplies in spot markets and firm demand from stockists and millers. Arrivals in benchmark market of Indore, Madhya Pradesh, were at 10,000 bags (1bag=100kg) down from 12,000 bags on previous close. Arrivals fell in Delhi as well, to 4,000 bags from 5,000 bags on previous close.
Maharashtra, Rajasthan to scrap pulses stock limit early next week.
Maharashtra, Rajasthan to scrap pulses stock limit early next week.
Wheat prices may fall in some states as tax rate under GST at 0%.
Wheat prices are likely to fall in at least eight states–Punjab, Haryana, Uttar Pradesh, Madhya Pradesh,Kerala, Andhra Pradesh, Telangana and Tamil Nadu as the food grain has been kept in the 0% rate under the Goods and Services Tax regime. which will subsume most indirect taxes from July. Punjab and Haryana levy 2% sales tax and 4% value added tax on wheat. While a 5% tax has been imposed under GST on branded flour, this won’t lead to rise in prices as organised players benefit from input tax credit on packaging material. Unbranded wheat flour has been kept at 0% tax slab under GST, and this may pull down its prices in states that levy a tax on the commodity now.
Govt looking for anganwadi, mid-day meals to sell excess pulses from buffer.
Govt looking for anganwadi, mid-day meals to sell excess pulses from buffer.
Research body cuts view for European Union wheat.
Research bureau Strategie Grains has cut its forecast for wheat harvest in the European Union this year to frost in key growing areas. The agency cut its estimate for the wheat crop in EU this year by 1.1 million tonne to 142.7 million tonne. That figure could change because the impact of the drought and cold spells the crops were subjected to is still difficult to assess accurately.
Delhi chana down on weak demand from dal millers.
Delhi chana down on weak demand from dal millers.
China top importer of Vietnam fragrant rice in April.
China has emerged as the largest importer of fragrant rice from Vietnam in April, accounting for 36% of the country rice exports. Vietnam exported around 140,000 tonne of the grain in April. Other major importers, Ivory Coast and Ghana, bought around 30,000 tonne each of the commodity. although Vietnamese rice exports to China in 2016 inched down against the previous year, the northern neighbour remained Vietnam largest rice importer.
Tur fails to recover despite stock cap removal, proposed hike in MSP.
Tur fails to recover despite stock cap removal, proposed hike in MSP.
Bihar maize up as rains boost demand for quality crop.
Demand for good-quality maize, containing 14% moisture, rose 20-30 repuees in Bihar Purnea market due to lower availability. Rains in Bihar in the last two days have led to increased moisture in the standing as well as the harvested crop. Arrivals to the market increased to 3,000 tonne from 2,000 tonne previous close due to respite from rains. NCDEX rabi maize contracts traded higher due to concerns over crop damage in Bihar after rains in the state. The June maize contract ended up 0.5% from the previous close.
NCDEX soybean up 1% on cues from spot markets.
NCDEX soybean up 1% on cues from spot markets.
NCDEX modifies norms for maize contracts expiring in October and later.
NCDEX has modified specifications for maize contracts expiring in October and after. The October contract available for trading from Jun 1. quality specification for delivery of the grain state that a maximum of 1% of fungus allowed. The clause for fungus-affected grains has been added to garner a large set of value chain participants, to encourage deliveries and to make available a futures contract that suits their hedging requirement. Chhindwara has been added as an additional delivery centre, as Madhya Pradesh is the second-largest producer of maize and the Chhindwara belt harvests a large produce. There no premium or discount offered on the basis of quality.
Soybean prices fall as Brazilian currency slumps.
Soybean prices fall as Brazilian currency slumps.
India coffee exports during Jan 1- May 18.
The Coffee Board of India has finalised its crop estimate for 2015-16 at a record-high of 348,000 tonne, up from 327,000 tonne produced a year ago, but down from previous estimate of 350,000 tonne. The board has estimated the output for 2016-17 at 316,700 MT tonne, down 9% on year.