Prices of onion in the key markets of Delhi were slightly down due to an increase in arrivals. At Azadpur, the benchmark market in Delhi, onion was quoted at 550-600 rupees per 100 kg, down 10-20 rupees. Arrivals were pegged at 100 trucks, each carrying 15-20 tn of the vegetable. The key markets of Lasalgaon and Pimpalgaon in Maharashtra remained closed on account of Janmashtami.
Barley up in Jaipur on demand from poultry sector
Despite concerns over quality, barley prices were up in Jaipur because of strong demand from poultry feed sector. In Jaipur, the benchmark market, the coarse grain was sold at 1,570 rupees per 100 kg, up 10 rupees. Very low supplies in the market and demand from stockists also supported the grain. Prices are likely to rise further as stocks held by farmers are nearly over and new crop arrivals are likely to commence only from March. Arrivals were estimated at 1-2 bags (1 bag = 85 kg), compared with 2-3 bags.
Moong acreage up 6.5% on year at 3.4 mln ha.
Area under moong crop across the country was at 3.37 mln ha, up 6.5% on year, largely due to a rise in acreage in Rajasthan and Karnataka. In Rajasthan, the largest grower, area under the crop jumped 22.0% on year to 1.91 mln ha. The rise in overall acreage this year is also due to the steep hike of 50% in the minimum support price for moong for 2018-19. In Karnataka, the area under moong cultivation rose 16.2% on year to 423,000 ha.
Urad acreage down 13% on year at 3.76 mln ha.
Farmers in the country have sown urad across 3.76 mln ha this kharif season down 12.8% on year. In Madhya Pradesh, the largest grower of urad, acreage was down 16.7% on year at 1.49 mln ha as farmers shifted to paddy and soybean in search for lucrative returns. For 2018-19 (Jul-Jun), the government has increased the minimum support price for paddy by up to 13% and for urad by 3.7%. Last year, many farmers opted for urad instead of soybean due to scattered rains and low realisations from the latter, which resulted in a jump in urad acreage.
Kharif tur area unchanged on yr at 4.45 mln ha.
India’s tur acreage was at 4.45 mln ha, largely unchanged from the previous year. Acreage under tur in Karnataka, the second largest producer of the pulse, was up 12.3% on year at 984,000 ha. During Jun 1-Sep 2, Karnataka received 693.6 mm rainfall, 2% above the normal weighted average of 683.0 mm. In Maharashtra, the area under tur was down 4.5% on year to 1.2 mln ha.
India Wheat tad up on NCDEX, most spot markets shut.
Wheat futures on NCDEX also edged higher amid absence of cues from key spot markets that were shut on account of Janmashtami. On NCDEX, the September-delivery wheat futures closed at 2,016 rupees per 100 kg, up 12 rupees. Wheat prices are likely to be confined to a narrow range in the coming days as the government has huge inventory of the food grain in its central pool. The government has also raised its estimate for wheat output in 2017-18 to a record high 99.70 mln tn from 98.61 mln tn earlier.
EU wheat rises on tight supply concerns.
European wheat rose on concerns about availability on the world market with lower than expected supplies in the European Union and Canada and uncertainty on export policies in the Black Sea region. Benchmark December milling wheat on Paris-based Euronext, settled up 1.9 percent at 205.50 euros a tonne. European wheat gained 2.75 euros this week and 1.25 euros over the whole month of August which was marked by volatility with prices moving in a 198.00 to 219.25 euro a tonne range. The low euro against the dollar which remains below the $1.17 resistance is also supportive for European wheat, making it more competitive on the world markets.
Punjab 2018 kharif rice crop seen 13.4 mln tn, up 10%
Punjab’s output of rice in 2018-19 (Jul-Jun) kharif season is likely to rise 10% on year to 13.36 mln tn due to a rise in acreage and yield. Punjab is a major rice producing state. Cotton output in the state during the season is seen falling 18% on year to 1.30 mln bales (1 bale = 170 kg). Maize output is seen down 14% on year at 450,000 tn.The state has pegged total food grain output at 13.82 mln tn, compared with 12.69 mln tn last year. Total output of oilseeds is seen at 5,400 tn, against 5,600 tn the previous year.
ICRA says rice sales to China may support India’s ailing export mkt.
China’s interest in buying non-basmati rice from India is likely to lend some support to the export industry. In June, China had allowed the import of rice from 19 mills in India. This followed a trade delegation from India visiting China to explore export opportunities for rice, sugar, and soy products to the country. A substantial increase in support price by the Centre in July, and a hike in duty for import of non-basmati rice by Bangladesh to 28% from 2% effective June, are expected to have negatively affected exports of the food grain.
Andhra 2018 kharif paddy crop seen 7.6 mln tn, up 1%
Paddy output in Andhra Pradesh in the 2018-19 (Jul-Jun) kharif season is seen rising 1% on year to 7.6 mln tn due to a marginal rise in acreage.
Barley up in Jaipur on demand from poultry sector.
Despite concerns over quality, barley prices were up in Jaipur because of strong demand from poultry feed sector. Very low supplies in the market and demand from stockists also supported the grain. Prices are likely to rise further as stocks held by farmers are nearly over and new crop arrivals are likely to commence only from March.
NCDEX chana up as govt restricts peas imports.
Futures contracts of chana erased earlier losses and rose slightly on NCDEX as the government restricted import of peas. September contract chana on NCDEX was up 9 rupees at 3,900 rupees per 100 kg. Peas are largely used as substitute for chana. The chana contract had hit a seven-week low of 3,754 rupees. The government had lifted the 100,000-tn import cap on peas that was in place till Sep 30, following the order of Madras High Court. Chana prices in Delhi were up 50 rupees at 4,225 rupees per 100 kg, Vikas Gupta, local pulses trader said adding that if NAFED sells chana below 4,000 rupees it will create selling pressure.
Maharashtra sees tur crop halving to 1 mln tn 2017-18.
Tur output in Maharashtra is estimated to nearly halve to 1.1 mln tn in 2017-18. Tur output in Maharashtra is estimated to nearly halve to 1.1 mln tn in 2017-18. Production of soybean is also pegged lower because of sufficient inventories and lower exports of the meal. Soybean output is estimated to fall 15.2% on year to 3.9 mln tn. Chana output in the state is estimated to fall to 1.8 mln tn, down 8.1% on year.
Lasalgaon onion flat as supply down, demand sluggish.
Prices of onion were steady in Lasalgaon, a key market in Maharashtra, as subdued demand from stockists offset gains from a fall in arrivals. In Lasalgaon, arrivals were pegged at 400 trucks, each carrying 15-20 tn of onion, down 50 trucks. Prices of onion were stable at 850-913 rupees per 100 kg.
Malaysia targets 80% rice self-sufficiency by 2022.
Malaysia targets to achieve 80% self-sufficiency in rice by 2022, moving up from the current 70%.
Govt cuts 2017-18 potato output estimate by 3.6% to 48.5 mln tn.
The government has cut its estimate for the country’s potato output for 2017-18 (Jul-Jun) to 48.5 mln tn, down 3.6% from 50.3 mln tn projected in May. According to the third advanced estimate released recently, potato output is seen falling a marginal 0.2% on year. The fall in potato output can be attributed to the decline in area under the vegetable. Potato was sown across 2.15 mln ha in 2017-18 compared with 2.18 mln ha a year ago. The government has, however, raised its estimate for onion output for 2017-18 to 22.1 mln tn from 21.8 mln tn pegged earlier. The estimate is still down 1.6% on year. In 2016-17, Indian farmers harvested 22.4 mln tn of onions. While the government has cut its estimate for total vegetable output to 179.7 mln tn from 182.0 mln tn projected in May, the output view is 0.9% higher on year. The estimate for total fruits output has been raised to 97.1 mln tn from 94.4 mln tn pegged earlier. It is also 4.5% higher on year. The government has revised downwards its projection for the combined output of the 17 items in the spices basket to 8.4 mln tn from 8.5 mln tn pegged earlier. For total horticulture crops, the government has lowered the output estimate for 2017-18 by 0.1% from its May estimate to 306.81 mln tn. Despite the lower estimate, horticulture output is still seen 2% higher than last year’s 300.64 mln tn.
FCI sold 87,750 tn of wheat in 6th open market sale FY19.
Food Corp of India sold 87,750 tn of wheat in the sixth round of auctions under the open market sales scheme for 2018-19 (Apr-Mar). The state-run agency had offered 2 mln tn of the grain at the auction. Food Corp of India holds wheat auctions for sale under the open market scheme, where bulk buyers like flour mills and bakery product manufacturers usually purchase. In Punjab and Haryana, most of the quantity was sold around the base rate of 1,900 rupees per 100 kg. In Madhya Pradesh, it was sold at 1,925 rupees. The agency had sold 95,450 tn of wheat in the fifth round of auctions that was held on Aug 16. For Jul-Sep, the government has fixed the base price for selling wheat under the open market sales scheme at 1,900 rupees per 100 kg. In wheat-producing states such as Punjab, Haryana and Madhya Pradesh, the government holds auctions at the base price. In states that don’t produce wheat, an additional price equivalent to ex-Ludhiana freight is added to the base price. From this year, the government has decided to change its base price for wheat offered under the open market scheme on a quarterly basis, to factor in carrying costs. For Oct-Dec, the base price has been set at 1,925 rupees per 100 kg, and would increase by 25 rupees to 1,950 rupees per 100 kg.
Maharashtra sends 50 tn tur dal to flood-hit Kerala.
The Maharashtra government has sent 50 tn tur dal to Kerala which is witnessing the worst floods in a century that have left hundreds dead. State agriculture minister Chandrakant Patil flagged off the Netravati Express carrying the pulse. Other pulses, rice, cereals, dry fruits, and biscuits have also been sent to the flood-hit state.
Farm agency to sell urad, moong via NCDEX e-Mkts.
Small Farmers’ Agribusiness Consortium has offered to sell 1,748.23 tn of urad and 248.50 tn of moong through NCDEX e-Markets. The pulses are stocked at various central and state godowns in Maharashtra, Madhya Pradesh and Rajasthan.
Urad acreage down 13% YoY at 3.7 mln ha.
Farmers in the country have sown urad across 3.7 mln ha this kharif season. In Madhya Pradesh, the largest grower of urad, the acreage was down 16.7% on year at 1.49 mln ha as farmers shifted to paddy and soybean as returns looked lucrative. For 2018-19 (Jul-Jun), the government has increased the minimum support price for paddy by up to 13% and for urad by 3.7%. Last year, many farmers opted for urad instead of soybean due to scattered rains and low realisations from the latter, which resulted in a jump in urad acreage.