The Centre is planning to provide 70 million households in selected districts with 2 kg of pulses monthly at a price that is about 50 percent cheaper than market prices. Under this mega sale, the Centre will provide pulses, especially arhar and gram (chana), to states at Rs 35 per kg compared to the average cost of procuring pulses of Rs 50 per kg (for Nafed). It could cost the Centre about Rs 8,000 crore for implementation of such a scheme. Currently, 5kg each of rice or wheat is provided under the National Food Security Act to 81 crore beneficiaries across the country.
India May Extend Deadline For Imposition Of Higher Tariffs On U.S. Imports.
The government may extend the deadline for imposition of higher customs duties on 29 products, imported from the U.S. by another 45 days. Among the 29 products are almonds, walnuts and pulses.The Central Board of Indirect Taxes and Customs is likely to issue an amended notification extending the date for the new levy on August 4. While the import duty on walnut was to be hiked to 120 percent from 30 percent earlier, duty on chickpeas, Bengal gram and masur dal was to be hiked to 70 percent from 30 percent. Levy on lentils was to be hiked to 40 percent from 30 percent.
USDA arm sees 2018-19 Kazakhstan wheat output down at 14 mln tn.
The US Department of Agricultures Foreign Agricultural Services has estimated Kazakhstans wheat production in 2018-19 (Sep-Aug) at 14 mln tn, down 800,000 tn from a year ago due to a fall in acreage. Kazakhstans government policy on crop diversification, and the unusually cold weather in June weighed on sowing of wheat crop in the country. The weather was mostly cold and windy in early June, which had hit sowing of wheat and germination of seed. The agency has pegged Kazakhstans wheat exports in 2018-19 at 8.0 mln tn, 500,000 tn down from last year because of lower output projection. The countrys consumption of wheat for food, seed and industrial purpose is expected to remain unchanged at 4.8 mln tn in 2018-19. As on May 1, Kazakhstan had 7.9 mln tn stock of wheat, 2% higher from the same period last year.
Jaipur barley up on bargain buying post 2-wk low.
Prices of barley rose in Jaipur due to bargain buying by domestic stockists after prices hit a two-week low of 1,340 rupees per 100 kg. In the benchmark market, Jaipur, barley was sold for 1,370 rupees per 100 kg, up 30 rupees. A fall in arrivals and improved demand from poultry feed sector also supported prices of the grain. Sluggish demand from malt makers, however, capped the gain in prices.
NCDEX barley up on demand from poultry feed sector.
Futures contracts of barley were up on the NCDEX, owing to improved demand from the poultry feed sector and domestic stockists. On NCDEX, the most active August contract was at 1,610 rupees per 100 kg, up 0.41%. Limited supplies in the benchmark spot market of Jaipur also supported contracts on the NCDEX. Talks of import of the grain from Argentina and sluggish demand from malt industries following concerns over quality of domestic stocks, however, capped gains in prices.
NAFED to sell tur, urad via NCDEX e-Mkts.
The National Agricultural Cooperative Marketing Federation of India has offered to sell 10,585.41 tn of tur and 3,983.59 tn of urad through NCDEX e-Markets. The pulses are stocked at various central and state godowns in Tamil Nadu, Telangana, Karnataka, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, and Maharashtra.
Govt says cane arrears fall to 82 bln rupees as of Fri from 145 bln.
Cane arrears on fair and remunerative price basis have nearly halved to 81.5 bln rupees as of Friday from 145.4 bln rupees during May end due to a slew of measures taken by the government to bail out the cash-strapped sugar industry. Depressed sugar price due to excess sugar production during current sugar season 2017-18 has adversely affected the financial health of sugar mills. The cane arrears on state advised price basis also came down to 166.0 bln rupees as of Thursday from 232.2 bln rupees in May. As a result of various interventions undertaken by the government, the ex-mill prices of sugar rose to 30-33 rupees a kg, thereby improving the liquidity position of sugar mills, from 24.5-26.0 rupees a kg. The excess sugar production during the current sugar season and indication of surplus production in the ensuing season has adversely affected the market sentiment due to which the ex-mill sugar prices in the domestic market have fallen sharply. The Centre has also created the buffer stock of 3.0 mln tn to help the growers and the industry.
Uttar Pradesh sees 2018-19 sugar output 13 mln tn, up 7.4% on year.
Sugar production in Uttar Pradesh is likely to touch an all-time high of around 13 mln tn in 2018-19 (Oct-Sep), up 7.4% on year. Mills across the state have produced a record 12.1 mln tn sugar this year, surpassing the previous high of 8.8 mln tn in 2016-17. Sugar output in the state is likely to rise on the back of higher area under cane in 2018-19. As of Thursday, cane acreage in Uttar Pradesh was 2.2% higher on year at 2.31 mln ha.
India Sugar Up in Maharashtra on rise in demand from bulk buyers.
Prices of sugar rose in the key wholesale markets of Maharashtra due to renewed demand from bulk buyers. Medium-grade sugar was sold at 3,540 rupees per 100 kg in Mumbai, up 5 rupees, and in Kolhapur, it was quoted 10 rupees higher at 3,415 rupees per 100 kg. Demand has improved ahead of festivals such as Janmashtami and Raksha Bandhan. So, mills have raised prices. Sugar prices in the key wholesale markets of north India, however, remained steady amid lacklustre trade. The sweetener was quoted at 3,535 rupees per 100 kg in Delhi and at 3,500 rupees in Muzaffarnagar, both largely unchanged. Prices of sugar are likely to spiral downward in the long term due to expectations of record production next season.
Chana down as demand wanes at higher prices.
Chana prices fell in Delhi as the recent rise in prices have hit demand. In Delhi, the benchmark market for chana, prices were at 4,500-4,550 rupees per 100 kg, down 20-30 rupees. Arrivals of chana in Delhi were unchanged at 225-300 tn. There is some selling pressure in the local market on talk that NAFED may sell chana. The chana August contract on the NCDEX was down because market participants booked profits after the contract rose to one-week high of 4,248 rupees per 100 kg.
Madhya Pradesh scraps mandi tax on pulses bought from other states.
Madhya Pradesh government has rolled back the mandi tax levied on purchase of pulses for milling from other states. The Indore-based All India Dal Mill Association had urged the government to roll back the tax to encourage millers in the state. Mills in Madhya Pradesh were losing business as processed pulses from other states such as Gujarat, Maharashtra and Chhattisgarh were cheaper due to absence of any tax. Mills in Madhya Pradesh had to pay an additional 2.20 rupees on every transaction of 100 rupees as mandi tax.
India soybean to rise on CBOT cues.
Soybean hit a one-and-half-month high on hopes that the US and China would restart stalled talks to end the trade war between the world’s two largest economies. In India, rising demand from soymeal exporters may also boost soybean prices. However, contracts of refined soyoil on the NCDEX and crude palm oil on the Multi Commodity Exchange are likely to trade lower due to lukewarm demand and adequate stocks in physical markets.
Source says NAFED to start selling mustard in Rajasthan.
The National Agricultural Cooperative Marketing Federation of India will start selling mustard seed in Rajasthan on Friday, a source close to the development said. The federation had procured the oilseed under the price support scheme in 2017-18 (Jul-Jun). NAFED had procured 873,004.90 tn of the commodity across the country in the rabi season, while its procurement in Rajasthan was at 471,614.16 tn as of Jun 25. With prices of mustard seed 300-400 rupees above the minimum support price of 4,000 rupees per 100 kg in the domestic market, it is beneficial for government agencies to release their stocks.
July monsoon less than normal but late surge in UP, Bihar may improve paddy sowing.
The monsoon fell below expectations in July, which ended with a countrywide rain shortfall of 6%, but late showers in the paddy belts of Uttar Pradesh, Bihar, Jharkhand and West Bengal have improved the overall rainfall distribution. With the monsoon becoming inactive in central and south India, the all-India rainfall deficit grew in the past six days (July 25) from 2% to 6%. However, during the same period, the rain shortfall reduced sharply from 42% to 19% in UP, 46% to 23% in Bihar and 35% to 24% in Jharkhand. Large rain deficits in these states, and West Bengal, have been the main reason for sluggish kharif sowing this year.According to the latest figures released last Friday, paddy sowing was nearly 12% less than the normal for the corresponding period. This was mainly on account of depressed sowing in these four states, where the area under paddy was nearly 27 lakh hectares below the normal for the same period.
Wheat futures slip 0.55% on firm supply.
Wheat prices slipped by 0.55 per cent to Rs 1,980 per quintal in futures trade as speculators cut down holdings, triggered by higher supplies in the spot market against low demand. Wheat for delivery in September fell by Rs 11, or 0.55 per cent, to Rs 1,980 per quintal.
Russian deep sea wheat soars to $228.25/mt, a 41-month high, despite weak demand.
Russian FOB deep sea port 12.5% protein wheat surged to a 41-month high at $228.25/mt as assessed by S&P Global Platts Tuesday despite demand faltering from regular Russian wheat importers. Russian wheat has now risen by $11.75 on the week as farmers continue to sit on higher quality protein wheat on an expected shortage due to months of drought and hot weather. However, demand from big buyers has been absent, due to the higher prices, leaving some in the market to question how long the firm rally can continue.
South Australia predicts reduced wheat crop of 3.95Mt.
The South Australian government has forecast the state’s winter crop at a below-average 6.9 million tonnes, including 3.95 million tonnes of wheat, which is close to one million tonnes below the five-year wheat average.
Japan to import 64,525 tonnes feed wheat and barley via tender.
Japan will import 18,465 tonnes of feed-quality wheat, and 46,060 tonnes of barley for livestock use, via a simultaneous buy and sell (SBS) auction. The ministry had sought 120,000 tonnes of feed wheat and 200,000 tonnes of feed barley to be loaded by Nov. 30 and arrive in Japan by Jan. 31, 2019 in the tender that is usually conducted weekly. It is seeking the same amounts for each grain to be loaded and shipped during the same period in a similar tender that will be held on Aug, 08.
Ukraine expects record maize harvest to reach 28m tons, rising sales to China.
Ukraine’s maize harvest may hit a record 27-28 million tons this year and sales to China could rise by 10 percent due to the trade war between the US and China. Ukraine has exported 2.6 million tons of maize to China so far in the 2017/18 September-August season, out of total sales of 16.6 million tons.
Soybean price up in Indore on low supply, CBOT cues.
Prices of soybean rose in Indore as arrivals declined and benchmark contracts on CBOT gained. In benchmark Indore market, prices of soybean rose by 25 rupees to 3,475-3,525 rupees per 100 kg. Arrivals of soybean in Madhya Pradesh fell to 30,000-35,000 bags (1 bag=100 kg) from 50,000 bags. Most markets in Madhya Pradesh were closed since Friday, last day of truckers’ strike, and the bandh called by traders to oppose electronic billing and procurement. On NCDEX, the October contract rose 1% to 3,394 rupees per 100 kg, tracking gains in the spot market.