- In an announcement on March 26, the food ministry allocated a monthly sugar quota of 25 lakh metric tonnes (LMT) for April 2024, which is 3 LMT higher than the quantity allocated in April 2023 (22 LMT).
- In March 2024, the allocated sugar quota for domestic sale was 23.5 LMT.
- According to market experts, as the Lok Sabha poll is around the corner, therefore a higher quota of 3 LMT was given compared to April 2023.
- This is likely to put pressure on the domestic market, and prices are expected to fall by 30 to 40 Rs per quintal.
Source:chinimandi
Due to Food Corporation of India (FCI)’s active sale of grains on the open market during this fiscal year and minimal procurement over the previous two years, wheat inventories in the central pool dropped to a 16-year low of 7.73 million tonne (MT). The stockpiles are probably going to be dangerously near to the 7.46 MT buffer for April 1st, sources informed FE. It was far back in 2008 when wheat stockpiles fell below their current levels. In April of the same year, it had then fallen to 5.8 MT. The purchase by the government agencies under the minimum support price (MSP) operations decreased to a record low of 18.8 MT in the 2022–23 season, following a record procurement of 43.3 MT in the 2021–22 season (April–June). In the rabi marketing season of 2023–24, it did, however, increase by over 40% to 26.2 MT. The government agencies have reduced their purchases under MSP operations during the previous two seasons as a result of lower supply and strong local demand driving prices over MSP, an official stated. In an effort to lower retail costs, the government discontinued the open market sale of wheat earlier this month. The sale had been conducted through weekly e-auctions since June of last year, with a record-breaking 9.4 MT of wheat sold to bulk purchasers.
(Source-Financial Express)
An intense ‘western disturbance’ — a wave of moist winds from the Mediterranean region that impacts north India — impacted the region from Feb 29 to March 4, causing hail and thunderstorms in the plains and heavy snowfall in higher Himalayas. The primary producing regions of India have seen unseasonal rains and hailstorms, damaging winter-planted crops including wheat, rapeseed, and chickpeas, which has caused harvesting to be delayed, industry and government sources told. State revenue agencies in Punjab, Haryana, Madhya Pradesh, Uttar Pradesh are now evaluating the degree of damage over wheat, the primary winter grain, was severely damaged in some areas, according to authorities. Unfavorable weather might restrict wheat output growth and make it more difficult for the government to increase stockpiles. In its second advance estimates released last week, the agricultural ministry predicted that wheat output would increase 1.3% to a record 112 million tons. However, fear has started that this figure may potentially be lower if significant crop damage was.
Punjab: Crop losses were reported in 2% to 5% of the cultivable land of Punjab, according to initial estimates. “Crop damage, predominantly wheat and mustard, is distributed across 1.5 lakh hectares (370,658 acres),” stated Jaswant Singh, head of Punjab’s department of agriculture and farmer welfare.
Uttar Pradesh: Crop damage reports came in from all over the Uttar Pradesh. Mahoba and Lalitpur districts recorded losses of more than 40% to standing crops, and other locations in Amethi, Etah, Ghazipur, Gorakhpur, Hardoi, Kaushambi, and Meerut allegedly suffered damage to a third of the crops. When the hailstorm arrived, the wheat and mustard were both at the milking stage. A farmer from Bijnor’s Chandak hamlet named Rajinder Singh stated, “There’s a permanent loss of 15%.” The standing sugarcane crop has sustained significant damage, according to Shamli’s Dharmender Malik.
Haryana: In the districts of Ambala and Kurukshetra, the recent unseasonal rains and hailstorm have impacted the wheat crop on around 70,700 acres and the oilseed crop on approximately 3,720 acres. According to the information obtained, Kurukshetra’s crops on about 63,807 acres—62,200 acres of wheat and 1,607 acres of mustard—have been impacted. Of the total wheat impacted area, 49,300 acres had a crop affected by 0–25%, 12,400 acres had a crop affected by 26–50%, and 500 acres had a crop affected by 51–75%. Comparably, in the case of the mustard crop, 1,315 acres had 0–25% crop damage, 280 acres had 26–50% crop damage, and 12 acres in Kurukshetra had 51–75% crop damage.The site for e-Kshatipurti has opened, and the farmers should get their losses registered there by March 10.
Madhya Pradesh: Thousands more have also been affected by the unexpected calamity in more than 20 districts, including Shivpuri, Tikamgarh, Datia, Chhattarpur, and Guna districts.The storm has destroyed standing crops in the Tikamgarh area of Madhya Pradesh, including mustard, wheat, gram, and lentils. The crops suffered damage in over six villages, including Bamhorikala, Jewar, Uprara, and Lidhaura. Farmers report that the hailstorm that began on Friday damaged 50% of their crops. In Tikamgarh, 1,92,000 thousand hectares are used for wheat cultivation, while 22,900 hectares are used for mustard planting. It is reported by farmers that there is a loss of 25% in mustard and 10% in wheat.
According to a trader with a worldwide trading business located in New Delhi, damage has been observed in all wheat-producing regions, from northeastern Punjab and Haryana to central India’s Madhya Pradesh. This will undoubtedly have an impact on wheat output.
The India Meteorological Department (IMD) stated in a statement on Sunday that two western disturbances are anticipated to bring showers, thunderstorms, and gusty winds to the plains and snowfall to the higher elevations of the Himalayas this week. Though the wheat crop is ready for harvest in a few weeks, experts are concerned about lodging. Jammu & Kashmir, Ladakh, Gilgit, Baltistan, Muzaffarabad, Himachal Pradesh, and Uttarakhand are expected to get mild to moderate rainfall and snowfall from March 10–12. This is due to the current western disturbance. On March 13, there would be gusty wind and rains across Punjab, Haryana, Delhi, western Uttar Pradesh, and north Rajasthan. on the same day, there will be another mild western disturbance that will bring snowfall and strong gusts to northwest India. Thunderstorms and lightning are likely over Jammu and Kashmir, Ladakh, Gilgit, Baltistan and Muzaffarabad on March 13, and over Himachal Pradesh and Uttarakhand on March 13-14, IMD said.”The wheat crops in Punjab, Haryana, and Rajasthan will be affected if there is crop lodging due to gusty winds,” stated Bhudeva Singh Tyagi, principal scientist at the Indian Institute of Wheat and Barley Research. “In dry regions, wheat, gram, and mustard crops would be primarily impacted by hailstorms and unseasonal rain. “Traders in Rajasthan are concerned that unseasonal rains could affect wheat crop quality. Hailstorms and rain last week have caused a delay in crop harvesting. Rain may have an effect on wheat quality, according to CP Gupta of Rajasthan’s Chesta Enterprise.
(Source- www.msn.com)
- The Ministry of Agriculture and Farmers Welfare has released Second Advance Estimates of Major Agricultural Crops (Kharif & Rabi Season) for the year 2023-24. From the last agricultural year, the summer season has been segregated from Rabi season and therefore this year Second Advance Estimate of area, production and yield includes only two seasons i.e. Kharif and Rabi season.
- The total sugarcane production is now revised higher at 4,464 LT for 2023-24 from the previous estimate and around 10% lower compared to the previous year cane production.
- While preparing the kharif crop production estimates the Crop Cutting Experiments (CCEs) based yield has been considered. However, States are still under the process of compiling results of Kharif CCEs. Further, CCEs of few crops viz., Tur, Sugarcane, Castor etc. are still ongoing.
Source: PIB
The agricultural ministry announced on Friday that the production of food grains in the 2023–24 crop year (July–June) is predicted to decrease by 6% to 309.34 million tonne (MT), from 329 MT in the previous crop year, due to a decrease in the output of rice and pulses. Because of the inconsistent monsoon rainfall during the previous crop year, rice output is expected to decrease to 123.8 MT from 125 MT in the second advance estimate of foodgrain production.The output of summer crops is not included in this prediction of rice output; this information will be included in the third advance estimate of food grain production, which is scheduled for release in June.The estimate for the production of food grains for the current crop year will be amended later, according to officials, even though the rabi crop harvesting has already begun.An official announcement stated that “these figures are subject to change in the successive estimates upon the receipt of better yield estimates based on crop cutting experiments.” 332 MT was the goal for foodgrain output for the current harvest. The main rab crop, wheat, is expected to yield 112 MT, a little bit more than the previous harvest year.
Source: Financial express
In 2023, Brazil reached a record-high soybean export of 3.74 billion bushels, a 29% increase from the previous year. This surge coincided with Brazil’s record-high level of production. The United States experienced a 14% decline in soybean shipments, reaching 1.78 billion bushels. Both Brazil and the United States are major players in the global soybean market, contributing to over 80% of worldwide soybean exports. Brazil’s soybean exports have surged by 431 percent over the past two decades, highlighting its growing dominance in the market. The United States has experienced a more gradual increase in soybean exports, but has stabilized since 2016, exporting around 49% of its soybean production. Brazil’s surge in soybean exports is attributed to favorable weather conditions, investments in agricultural infrastructure, and expansion of cultivation areas.
Source:www.chemanalyst.com
India plans to begin wheat procurement on March 1st and aim to acquire 114 lakh metric tons (LMT) of wheat this season. While the administration is still hopeful that problems with the protesting farmers will be resolved before the procurement season, Food Secretary Sanjeev Chopra indicated that more discussions are welcome and hinted that there may not have been clear communication of intentions to the demonstrators. The administration is expecting a record-breaking rabi harvest due to the early arrival of the wheat crop and the lack of an early warm weather forecast. Some states, like Uttar Pradesh, are trying to buy wheat as early as possible. To improve this process, farmer awareness workshops are being held to tell farmers about the available Minimum Support Price (MSP). The Secretary made it clear that allegations of dishonest people stockpiling rice in anticipation of strong export prices once the export prohibition expired—rather than a shortage—were the reason behind the prolongation of tax on parboiled rice. The Secretary noted the government’s encouragement of maize for ethanol production, even if she stated that there is no proposal to alter the limit for diverting sugar syrup for ethanol production. The National Agricultural Cooperative Marketing Federation of India (NAFED) and distilleries are finalizing agreements, and on February 13, a Standard Operating Procedure (SOP) was circulated with the goal of ensuring MSP and building an ecosystem that will support increased maize cultivation, crop diversification, and farmer welfare.
Source: CNBC
Brazil and Argentina are expected to maintain their positions in the global soybean market this year. Although Brazil’s harvest is projected to slightly decrease from last year’s record crop, Argentina is forecasted to double its soybean production. Together with the United States, these countries constitute the primary soybean producers globally, accounting for 80% of the total output. China, in contrast, holds a much smaller share at 5%.
According to estimates from the US Department of Agriculture (USDA), Brazil is poised to harvest approximately 156 million tonne of soybeans this crop year, slightly less than the previous year’s record of 162 million tonne. Brazil’s leading position is further solidified by a 1.3 million-hectare expansion in soy production area, reaching 45.9 million hectares, surpassing the US.
In the US, the soybean harvest concluded by the end of 2023, yielding around 113.3 million tonne, marking a decline of about 2.9 million tonne compared to the previous year.
In Argentina, the third-largest producer globally, the harvest is expected to be notably larger than the previous year, which was hampered by drought and heat. Forecasts suggest the output could even double to 50 million tonne, fueled by higher yields and expanded soy cultivation areas.
Conversely, China is anticipated to increase its harvest volume by approximately 556,000 tonne from the previous year, reaching 20.8 million tonne, as per the latest USDA estimates.
Source: Biofuels International
The Indian government decided on Wednesday to keep the 20% export tax on parboiled rice in effect past March 31. In August of last year, the government levied a 20 percent tariff on the export of parboiled rice with the intention of preserving a sufficient supply locally and controlling domestic prices. Later, it was extended to March 31, 2024. The finance ministry announced in a statement that the 20 percent export tariff will remain in effect after March 31 without a deadline. Additionally, the period for the duty-free import of yellow peas has been extended until March 31 as long as the bill of landing is provided by April 30, 2024, at the latest. The Ministry of Statistics & Programme Implementation issued statistics earlier this month showing that India’s retail inflation fell to 5.10 per cent on an annual basis, down from a four-month high of 5.69 percent in December. Due to rising market supply and government initiatives, the cost of rice has decreased by up to 10% over the previous month, making the basic food grain more accessible to Indian households. Prices for basmati rice have dropped by 10%, whilst non-basmati rice has decreased by up to 7%. Ahead of the general elections, the government should benefit from the price decrease of the most popular grain.
Source: Economic times
The standard operating procedure (SoP) for the government’s plan has been released. According to it, cooperatives like NAFED and NCCF would contract with distillers to guarantee a supply of maize at ₹2,291 per quintal for the production of ethanol.
A Chhindwara, Madhya Pradesh, distiller and NAFED are expected to sign the first agreement under the scheme, which aims to guarantee maize farmers a minimum support price (MSP) and distilleries a continuous supply of feedstock, thereby reducing price volatility for both parties.
The action is a component of the government’s larger attempt to boost gasoline-ethanol blends, which reached 12% in the Ethanol Supply Year (ESY) 2022–2023 and are targeted to reach 15% in the ESY 2023–2024. According to information obtained, as of January 31, the blending rate for the current ethanol year, which started in November 2023, was approximately 12%.
Under the SoP, NAFED and NCCF will enter into a supply contract with distillers for supply of maize with price, quantity, location of supply and other commercial terms and conditions pre-defined for the ESY.
- For ESY 2023–2024, the distiller will pay ₹2,291 per quintal for maize, which includes all procurement prices and agency profits. The current maize MSP, which will be changed later, is ₹2,090 per quintal and will take effect in October 2024.
- The distiller will pay the transportation cost of maize from the mandi to the distiller’s warehouse. If the sale is through the ONDC platform, then the buyer will bear the buyer margins of ONDC.
- To achieve the target of 20 per cent ethanol blending with petrol under the EBP programme by 2025, the focus is on maize, a hardy crop that can withstand drought.
- With production of sugarcane expected to be impacted, the government is focusing more on increasing the use of maize as a feedstock for producing ethanol. To achieve this, the production of the commodity needs to be increased.
Source: TheBusinessline
The country has effectively attained an ethanol blending rate of 11.20% as of February 4, 2024. The current Ethanol Supply Season began on November 1, 2023, and the revised allotment for ethanol deliveries from (Sugar) molasses-based distilleries is 162 crore liters, down from the earlier allocation of 270 crore liters. Distilleries that use molasses have contracts for 123.52 crore liters, while 76.97 crore liters have been supplied to Oil Marketing Companies (OMCs).
Breaking down the feedstock-based ethanol supplies for (Sugar) molasses-based distilleries, the revised allocation for ethanol from B Heavy molasses is now 115 crore liters, down from the initial allocation of 130 crore liters. Although actual supplies of B Heavy molasses reached 34.45 crore liters, total contracts for the product total 73.93 crore liters.
The initial 136 crore liters of Sugarcane Juice (SCJ) allocation has been reduced to 43 crore liters. With 41.17 crore liters of provided ethanol, the total contracts from SCJ equal to 44.7 crore liters. The allocation of ethanol supplies from C Heavy molasses has not been changed; it is still 4 crore liters, with 1.35 crore liters of supplies now on hand.
Turning our attention to ethanol distilleries based on grains, the allotment stays at 292 crore liters, unaltered. Out of this, the contracted quantity is 146.23 crore liters, and the total supplies amount to 45 crore liters. Damaged Foodgrains (DFG) is currently providing 25.66 crore liters of ethanol, as opposed to the 84.92 crore liters that were contracted. With supply from maize reaching 19.34 crore liters as of the first week of February, compared to a total contracted quantity of 45.97 crore liters, the government has offered policy support to increase ethanol production from maize.
In total, the ethanol supplies from both molasses-based and grain-based distilleries amount to 121.97 crore liters, as against to the total contracted amount of 269.75 crore liters.
Source: Chinimandi
La Nina means colder-than-usual temperatures in the Pacific Ocean near the equator and often brings floods and droughts. The National Weather Service’s Climate Prediction Center (CPC) mentioned that although predictions made during spring are not always very accurate, it’s quite common for La Nina to follow strong El Nino events, historically.
According to the CPC’s monthly forecast, the ongoing El Nino weather pattern, responsible for creating hot and dry conditions in Asia and unusually heavy rains in certain parts of the Americas, is expected to transition to ENSO-neutral conditions between April and June 2024.
Sabrin Chowdhury, who oversees commodities at BMI, mentioned that La Nina could impact wheat and corn production in the U.S., as well as soybean and corn production in Latin America, including Brazil.
Meteorologists and agricultural analysts suggest that following a strong El Nino, global weather is likely to switch to La Nina in the latter part of 2024. This pattern usually brings more rain to Australia, Southeast Asia, and India.
India, being the largest rice provider globally, limited rice exports due to a weak monsoon, whereas Australia, the second-largest exporter of wheat, faced a decline in wheat production. Additionally, palm oil plantations and rice fields in Southeast Asia experienced below-average rainfall.
According to an official from the India Meteorological Department, the emergence of La Nina tends to be advantageous for the Indian monsoon. Typically, during La Nina years, the monsoon brings plentiful rainfall.
Source: Reuters
According to Department of Agriculture & Farmers Welfare, the area under Summer maize is increased by 2 percent to 2,308 thousand hectares as against 2,262 thousand hectares sowed during the same period last year.
Bihar, stands out among the Indian states as the one that contributes the most to the sowing of maize, with 792 thousand hectares. Comparing this to the 636 thousand hectares of sowing over the same period last year, there has been a impressive gain of 25%.
Maharashtra, with its 338 thousand hectares of sown land, comes in second among the states. However, when compared to the 388 thousand hectares over the same period last year, this statistic shows a loss of 13%.
According to Department of Agriculture & Farmers Welfare, the area under Summer rice is decreased by 2.7 percent to 3,929 thousand hectares as against 4,037 thousand hectares sowed during the same period last year.
Telangana stands out among the Indian states as the one that contributes the most to the sowing of rice, with 1,478 thousand hectares. Comparing this to the 1,544 thousand hectares of sowing over the same period last year, there has been seen a decline of 4.3%.
Tamil Nadu, with its 1,206 thousand hectares of sown land, comes in second among the states. However, when compared to the 1,210 thousand hectares over the same period last year, this statistic shows a loss of 0.3%.
Recent rainfall in northeastern and northern Brazil has increased soil moisture but also hindered the drying out and harvesting of soybeans. As of late last week, 11% of Brazil soybeans had been harvested, up from 5% the previous year and an average of 7.6%. However, the damp weather in central and northern Mato Grosso caused the harvest to lose some of its pace.
Brazil’s soybean yields are still disappointing everywhere the harvest has begun, with Mato Grosso reporting reduced yields. Parana, for example, has reported lower yields due to dry weather in December and early January. The yields of the soybeans that mature later will determine whether or not the estimate for Brazilian soybeans eventually declines.
Mato Grosso has seen an 8.6% weekly advancement in soybean harvest, with 34% of soybeans in western Mato Grosso being the most advanced harvest. However, poor seed quality is a common issue in some areas of Mato Grosso due to the rainy weather during harvest.
Parana is on the verge of becoming the biggest surprise in Brazil, but its once-promising soybean harvest has somewhat lost its shine. The Department of Rural Economics (Deral) reduced its projection for Parana’s soybean production in 2023-2024 by 2.4 million tonnes, to 19.2 million.
Rio Grande do Sul has seen a 15% decrease in soybean production due to the recent good weather, with 62% of soybeans in the vegetative stage, 30% in bloom, 8% filling pods, and the majority closing rows.
Goias has seen less than 30 sacks per hectare of soybeans harvested, with 15% to 20% of the whole crop being harvested. Safrinha maize planting will be postponed past the optimal planting window due to delayed soy planting.
São Paulo is suffering losses due to the previous hot and dry weather.
Source: Soybean and Corn Advisor, Inc.
According to sources, the government has decided to stop price increases by selling grain that has been subsidized through retail outlets as part of the Bharat rice project starting next week. In the coming days, a formal decision to sell rice for Rs 29/kg through retail outlets would be made. The aim is to reduce the mass consumption rice varieties’ retail prices, which have stayed unabatedly high in spite of the Food Corporation of India’s (FCI) free market sales and restrictions on some exports. The Bharat rice effort may help bring down prices, as the issue of high rice prices is still a concern, an official told .In spite of a record output, plenty of stocks with FCI in the works, and numerous levies and restrictions placed on grain exports, the official claimed that domestic rice prices are at high levels. Under the Bharat Dal and Bharat Atta programs, the government is currently selling chana dal and atta (flour) at discounted prices of Rs 60/kg and Rs 27.5/kg, respectively. Furthermore, FCI has already sold over 7 million metric tons (MT) of wheat to large buyers through the open market selling program from its excess inventory. According to sources who spoke with FE, organizations like Kendriya Bhandars, National Cooperative Consumers Federation (NCCF), and Farmers’ Cooperative NAFED will first offer 0.45 MT of non-fortified rice stock with the FCI for retail sales. When the FCI offered to sell excess rice on the open market to large purchasers at a subsidized rate of Rs 2900 per quintal—which is less than the economic cost of grain for 2022–2023 of Rs 3,537 per quintal—the reaction was lukewarm.
- The All India Sugar Trade Association (AISTA) released its initial estimate, which predicts that India’s sugar production will likely decrease by 4% to 31.6 million tonnes (mt) for the October 2023–September 2024 season from 32.9 mt the previous season.
- The estimated production, with a variation of plus or minus 3 per cent, has not included diversion of sucrose of about 2 mt for ethanol production.
- According to the trade body, the estimated availability of sugar in the country is likely to be 37.3 mt this season, which is higher than domestic consumption estimated at 29 mt. The opening stock of sugar as on October 1, 2023 was 5.7 mt, it said adding the closing stock might be around 8.2 mt in the 2023-24 season.
- Sugar production in Uttar Pradesh, the largest sugarcane producing state, has been pegged at 11.7 mt this season, 9.3 per cent higher than 10.7 mt last season. In Maharashtra, the sugar output is set to drop 10.3 per cent to 9.6 mt from 10.7 mt and in Karnataka it may dip by 16.1 per cent to 4.7 mt from 5.6 mt.
Source-Businessline
China imported 69.95 million metric tonne of soybeans from Brazil in 2023, a 28.6% increase from 2022. In December, imports from the South American nation were 4.98 million mt.
Even in months when imports of soybeans from the US would typically predominate, this increase was attributed to abundant availability, robust harvest, and competitive prices. The US’s portion decreased to 24.3%.Therefore, of the 99.4 million mt of imported soybeans in 2023, 70.3% came from Brazilian beans, up from 61% in 2022.
While China imported 24.21 million metric tonne of US soybeans, a 12.9% decrease from 2022. As of December, the volume was recorded at 3.85 million metric tonne. However, logistical challenges in the Mississippi River and Panama Canal hindered US soybean exports to China.
404 Page Not Found
Oops! It looks like you've taken a wrong turn.
The page you were looking for might have been moved, deleted, or it could be temporarily unavailable. Please double-check the URL for any typos or try navigating back to the homepage.
In the meantime, here are a few suggestions:
- Homepage: Head back to our homepage and explore from there.
- Contact Us: If you believe this is an error or need further assistance, feel free to contact us.
We apologize for any inconvenience. Technology can be tricky sometimes, but we're here to help you find your way. Thank you for your patience!