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.
CBOT corn down 1% on profit booking after gains Wednesday.
Corn futures on the CBOT fell over 1% as traders booked profits after prices rose on previous close. July corn contract traded at $3.6625 a bushel, down 1.4% from the previous close. Corn prices rose on previous close due to weakness in US dollar against major currencies, which made the dollar-denominated commodity cheaper for foreign buyers. Prices were also supported by concerns of crop damage in the US due to rains in regions where the crop is grown. Expectations of higher supplies from major producers Argentina and Brazil are also weighing on prices.
India Apr 16-May 15 mustard crushing 0.675 million tonne down 10% on month.
India Apr 16-May 15 mustard crushing 0.675 million tonne down 10% on month.
Govt official sees India year to Jun basmati acreage rising 25%.
The area under basmati rice across India is expected to rise 25% on year to 2 million haactare in 2017-18 (Jul-Jun), as higher realisations have encouraged farmers to cultivate more grain. If the weather and other growing conditions remain favourable, the output might also rise. Basmati rice production in India is estimated to have fallen 23% on year to 6.2 million tonne in 2016-17. Due to shortage of supplies, prices have risen nearly 20% in the last three months. India non-basmati rice output in 2016-17 (Jul-Jun) is estimated at a record high of 103 million tonne.
Mustard seed at 3-week low in Jaipur as supply rises.
Mustard seed at 3-week low in Jaipur as supply rises.
India rice unchanged in spot markets.
Prices of rice were unchanged in the spot markets, with the 1121 steam variety sold at 8,000 rupees per 100 kg in Taraori, Haryana, and Permal Raw variety quoted at 2,500 rupees in Delhi. Prices are likely to sustain at this level, at least till the next crop arrives in December. While export realisations of basmati rice have increased, export volumes haven’t changed much. India exported 4 mln tn of rice in 2016-17 (Apr-Mar), down 1.1% on year. In volumes terms, there has not been much change in exports. India exported over 700,000 tonne of rice to Iran in 2016-17 (Apr-Mar) marginally higher than 695,000 tonne the previous year.
NCDEX mustard seed hits over 2-year low on spot cues.
NCDEX mustard seed hits over 2-year low on spot cues.
Coriander prices up in Rajasthan as arrivals slump.
Prices of coriander in the spot markets of Rajasthan rose because of a sharp decline in arrivals. Arrivals in Rajasthan more than halved to 7,000 bags (1bag=40kg). In the benchmark market of Kota, the Badami variety and the Eagle variety both up 200 rupees from the previous day. On the NCDEX June contract of the spice traded up by 4 rupees from the previous settlement.
Groundnut down in Rajkot as high prices hit demand.
Groundnut down in Rajkot as high prices hit demand.
All-India cotton arrivals steady at 50,500 bales.
Arrivals of cotton at major spot markets across the country were at 50,500 bales (1bale=170kg) on Wednesday, unchanged from previous level.
India coffee exports during Jan 1- May 17.
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 tn. The board has estimated the output for 2016-17 at 316,700 MT tonne, down 9% on year.
Sugar prices down in Delhi, unchanged in Mumbai.
Prices of sugar fell in the key wholesale markets of Delhi and Muzaffarnagar, because of poor demand in the market. In Delhi and Muzaffarnagar, the sweetener was sold down by nearly 20 rupees. In Mumbai, the key wholesale market of Maharashtra, prices of sugar were unchanged due to thin trade. Prices in Mumbai, however, are likely to fall in the near term due to lack of demand. On the NCDEX, the most-active June contract of sugar traded down 0.3% from the previous close.
USDA arm sees India year to Sept 2018 coffee crop up 5% at 5.45 million bags.
The US Agriculture Department Foreign Agricultural Services has estimated India coffee production in 2017-18 (Oct-Sep) at 5.45 million bags (1bag=60kg), up 5.4% from 5.17 million bags pegged in 2016-17 due to pre-monsoon showers in March and April that helped the setting and development of the coffee fruit. Karnataka, rains were 2% above normal in Chikmagalur during Mar 1-May 10, while in Kodagu, rains were 18% above normal and Hassan received 37% above normal rains. The yield of Robusta constitutes over 70% of the total crop, is seen slightly higher than last year due to good rainfall and availability of water for irrigation. The Arabica variety is likely to bear higher fruits than last year.
Barley prices up in Jaipur on domestic demand.
Barley prices up in Jaipur on domestic demand.
Govt lifts stockholding limit on pulses to boost private procurement.
Govt lifts stockholding limit on pulses to boost private procurement.
Chana may rise 10% by Jul on likely lower crop, talk of import duty.
Chana may rise 10% by Jul on likely lower crop, talk of import duty.
Delhi chana down on higher arrivals, low demand.
Delhi chana down on higher arrivals, low demand.
Canadian pea exports well ahead of year ago.
Canadian pea exports well ahead of year ago.