Cardamom Prices Higher On Good Demand – March 31 , 2009

Cardamom prices were higher during the weekend at auctions held in Kerala and Tamil Nadu. The individual average price was falling between Rs 515 and Rs 530 a kg. Prices were at higher levels on good upcountry demand that gives the impression that the commodity is currently available only from the indigenous sources as arrivals from the only other source, Guatemala, seem to have been nil during the current season, market sources said.

The increase in exports of cardamom (small) from the country during April-February 2008-09 substantiates this assessment. Total shipments during the 11 months of the current fiscal surpassed despite high unit value, both the targets in volume of 550 tonnes and value of Rs 25 crore and touched 600 tonnes valued at Rs 37.08 crore. The unit value realised was Rs 617.92 a kg. Exports during the corresponding period last fiscal was 430 tonnes valued at Rs 20.44 crore and the unit value realization was Rs 475.34 a kg.

Pepper Futures Went Up – March 31 , 2009

On Monday, pepper futures continued to rise as there was no selling pressure. Tight availability position also contributed to upward movement. April contract went up by Rs 77 to close at Rs 11,340 a quintal on NCDEX. May and June moved up by Rs 103 and Rs 78 respectively to end at Rs 11,515 and Rs 11,625 a quintal.

There was no buying interest in view of the financial year ending. Total volume improved by 871 tonnes to 2,000 tonnes. Total open interest dropped by 105 tonnes to 5,694 tonnes.

April open interest dropped declined by 199 tonnes to 3,403 tonnes while that of May and June moved up by 79 tonnes and 13 tonnes respectively to 1,973 tonnes and 257 tonnes on NCDEX.

Spot prices remained unchanged at Rs 10,800 (ungarbled) and Rs 11,300 (MG 1) a quintal. Indian parity in the international market however fell to $2,375 a tonne (c&f) following weakening of the rupee against the dollar on Monday.

High Gold Prices Boost Imitation Business – March 30 , 2009

New Delhi: Due to the high prices of gold the jewellery sales in India were down even during the marriage season, especially in Gujarat and Kerala. However to deal with this, the jewelers are now banking on imitation jewellery. During marriage season, a middle class family buys minimum 100 gm of gold jewellery, while the purchase surges to 400-500 gm in case of rich families. A single jeweller in Gujarat normally gets business for two to three kg gold a day. But now it has reduced to just 200-500 gm. In order to survive the hard times, many jewellers have shifted to imitation jewellery from gold temporarily. Same is the case with jewellery workers. Several artisans with jewellery shops have now shifted to imitation jewellery work.

Rajkot accounts more than 1 lakh gold and silver jewellery makers. Around 40 per cent workers have changed their work pattern. In Rajkot gold was quoted Rs. 15,300 per 10 gram on Thursday. Last month gold price ranged between Rs 14,000-15,750. The same scene is also seen in Kerala with several shops switching over to imitation jewellery business.

The Domestic Rubber Prices – March 30 , 2009

Kottayam: On Saturday, the domestic rubber prices ended on pleasant note. In spot, the weekend session closed on positive as traders remained extremely hopeful following a improved closing in rubber futures on NMCE. Sheet rubber gained further to Rs 85.50 from Rs 84 a kg on fresh buying coupled with short covering.

The volumes were fair. RSS 4 improved at its April futures to Rs 86.65 (84.84), May to Rs 87.35 (85.65), June to Rs 86.35 (84.93) and July to Rs 85.40 (84) a kg on National Multi Commodity Exchange (NMCE).

Spot rates were (Rs/kg): RSS-4: 85.50 (84); RSS-5: 83.50 (82); ungraded: 82.50 (80); ISNR 20: 82 (80) and latex 60 per cent: 62 (61).

Sugar Imports Improbable Due To Plunge In Prices – March 28 , 2009

There are expectations that India may not need white sugar imports at zero duty and imports of raws may be lower than earlier expected as local prices have reduced, Union food and agriculture minister Sharad Pawar said on Wednesday, pushing futures prices down.

Soaring local prices ahead of general elections scheduled in April and May had encouraged the government to relieve import rules for raw sugar last month. Traders had speculated the government may also scrap the 60% import duty on white sugar, but Mr Pawar said this may not be necessary as prices had fallen.

Sugar in the spot markets of Maharashtra, the top producer, has retreated 9% from this year’s peak of Rs 2,181 per 100 kg on February 3. “If the situation continues, we may not require importing white sugar,” Mr Pawar said. Lower prices had also hit raw sugar imports, he said.

Oilseed Production Rises 18% On Better Weather And Irrigation -March 26,2009

The comfortable weather has contributed a lot in India for raising oilseeds production. A conducive weather and better irrigation coverage helped the country to produce 95.8 lakh tonne of oilseeds in the 2008-09 Rabi season, which is 18% higher than 81 lakh tonne in the previous season.

The increase in production comes on the back of bringing more areas under oilseeds in the current Rabi season. According to the most recent estimate by Central Organisation for Oil Industry and Trade (COOIT), area under summer oilseeds crop increased by 2.67 lakh hectares to 98.24 lakh hectares from 95.57 lakh hectares in the previous year.

The 18% rise in Rabi oilseeds output would help avoid a depression in total oilseeds production in the 2008-09 season (November-October), despite a drop in its production during the Kharif season.

Cardamom Prices Observed A Rise In Auction - March 25, 2009

Cardamom prices observed a rise and steadiness last weekend on tight supply and good demand at auctions held in Kerala and Tamil Nadu. Individual average price went up from Rs 490 a kg at the CPMC auction on last Wednesday to Rs 507 on Sunday.

On Monday 24 tonnes of cardamom arrived in Bodinayakannur at the CPA auction and approximately the entire quantity was sold out. The maximum price obtained was Rs 575 a kg and minimum Rs 357 a kg. The average price dropped to Rs 480.87 a kg. Normally, prices at this auction used to be comparatively lower because of the poorer quality of the material, trading sources in Bodinayakannur said.

Requirement For Steel In India Remains Better - March 23, 2009

Global research firm Macquaire has informed that the requirement for steel in India remains better than many other countries, but there would be pressure on margins.

"India is a rare example where the steel industry is still operating at 90 per cent capacity utilisation and inventories are reducing," Macquarie said in its latest report on the India steel sector.

"We believe India remains better placed on the demand side than many other countries, but margins are being reduced as steel prices follow global demands," the report said.

Regardless of being a net importer of steel and the Government having imposed a 5 per cent import duty, Indian producers have been forced to keep in line go along with global prices to keep cheap imports from CIS countries uneconomical, it said.

Speculation Raises Spot Rubber - March 21, 2009

Spot rubber went up on Friday, as covering groups lifted the prices to further highs possibly on a speculative interest, an observer said.

Sheet rubber RSS 4 lifted to Rs 76.50 from Rs.75.50 a kg, while the market made all-round improvement even in the nonexistence of enquires from the major manufacturers.

The April futures for RSS 4 firmed up to Rs 77.99 (Rs 77.50), May to Rs 79 (Rs 78.56), June to Rs 79.99 (Rs 79.67) and July to Rs 79.95 (Rs 79.80) a kg on National Multi Commodity Exchange (NMCE).

Customs Duty On Crude Soyabean Oil Has Removed - March 21, 2009

The Government has removed the 20 per cent customs duty on crude soyabean oil imports in order to keep it on par with imported palm oil that is currently allowed duty free. The Commerce Secretary Mr G K Pillai announced this move. The crude soyabean oil was the only vegetable oil that attracted the customs duty. Both the palm and sunflower crude oils can be imported duty free.

The soybean oil is always sold at premium over the palm oil and the customs duty removal on crude soyabean oil may help reduce this premium. In the four months ended February 2009, the imports of country's soyabean oil stood at 2,81,349 tonnes, up from 1,72,884 tonnes in the year ago period, according to the Solvent Extractors' Association of India.

South India Tea Production Seen 35% Down - March 20, 2009

South Indian tea output for the first three months of the existing year is expected to be considerably lower by around 35 per cent as compared to the corresponding period of previous year.

The reason behind the drop is the severe drought conditions in the growing areas of three southern States. "Every tea growing region in Tamil Nadu, Kerala and Karnataka has been affected badly. The summer showers came only now after mid-March and its impact would be known only in April," Mr Sanjith Nair, Assistant Secretary (Commodities) of the United Planters' Association of Southern India, told Business Line.

Against 49.49 million kg produced during January-March 2008, the total south Indian production is likely to come to around 30-35 million kg this quarter, he said. In January, South Indian output dropped by 15.56 per cent (2.1 mkg) to 11.4 mkg from 13.5 mkg in Jan 2008.

According to industry sources, the touch of the economic recession hasn't been felt so far in the tea sales. They said that the fall in the output in other producing countries have helped the prices of both orthodox and CTC teas to move up in recent weeks. The export unit value for all teas increased by Rs 21 a kg to Rs 118.74 from Rs 97.74 a kg in Jan 2008.

Sugar Prices Are Expected To Rise Up - March 19, 2009

Sugar prices are expected to rise up to Rs 30 per kg in retail market after Lok Sabha elections. The latest government measures to control sugar prices will be effective only till election.

"The government measures will only help in keeping prices lower till general elections. In the long run, sugar prices are likely to go up because of poor domestic fundamentals," former Chairman of the Commission for Agriculture Costs and Prices (CACP) T Haque told PTI.

More than 39 per cent drop in domestic sugar output this year will pressurize prices, which may rise up to Rs 30 a kg in the retail market after April-May, the period when the general elections will take place in the country, he said.

Last year, sugar prices averaged around Rs 20 a kg due to surplus. However, the situation this year is discouraging because sugar availability is estimated to be lower at 16.5 million tonnes against the annual domestic demand of 22.5 million tonnes, Religare Commodities analyst Ajitesh Mullick said.

Currently, retail price of sugar is between Rs 18 and Rs 26 a kg in the country, according to official data. Last week, the government decided to impose stock holdings and turnover limits in sugar for four months to restrain price rise.

The Physical Rubber Prices Improved - March 19, 2009

On Tuesday, the physical rubber prices improved. A firm closing in major international indices contributed to positive mood during the session. Sheet rubber ended marginally up at Rs 74 (73.75) a kg mainly on covering purchases. The trend was moderately mixed as ungraded rubber closed flat with comparatively weak volumes. RSS 4 improved at its April futures to Rs 74.88 (74.27), May to Rs 76.10 (75.53), June to Rs 76.80 (76.44) and July to Rs 77 (76.20) a kg on National Multi Commodity Exchange (NMCE).

Rubber futures on the Tokyo Commodity Exchange finished in green attracting bulls' buying followed by a bounce back in oil and oil products. The March contract for RSS 3 firmed up to Yen 131.7 (Yen 131) (Rs 68.60), April to Yen 135.5 (Yen 133.2), May to Yen 137.1 (Yen 135.2), June to Yen 138.8 (Yen 137.8), July to Yen 138.6 (Yen 137) and August to Yen 139 (Yen 136.7) a kg on TOCOM. RSS 3 improved to Rs 73.66 (72.88) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) slipped further to Rs 74.60 (74.65) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 74 (73.75); RSS-5: 72.50 (72); ungraded: 71.50 (71.50); ISNR 20: 72 (71) and latex 60 per cent: 56.50 (56).

Rice Procurement In India Registered A Record - March 18, 2009

Rice procurement in India registered a record increase of 18 per cent this year due to the all time high produce this season.

As per the data with Food Corporation of India (FCI), rice purchase went up by 18 per cent to 248.98 lakh tonnes, compared with 210.43 lakh tonnes in the year-ago period.

If the purchases continue to go on at same speed, FCI may procure another bumper amount of rice as production is estimated to be 989 lakh tonnes this year, a government official said. The agency had procured a record 284.93 lakh tonnes of rice in 2007-08 (October-September).

India Is The World's Major Producer And Exporter Of Turmeric - March 17, 2009

India is the world's major producer and exporter of turmeric. According to market estimates, production of the turmeric for the coming season is expected to be around 337,500 tonnes against 333, 750 tonnes last year.

There has been a gradual shift in production to crops like Cotton due to a higher Minimum Support Price for the crop.

On the export front the coming days may observe an increase in exports due to a shortage of the commodity in other major producing countries like Pakistan and Myanmar. India has set an export target of 50,000 tonnes for 2008-09.

Indian Jeera Futures Ended - March 16, 2009

On Friday, Indian jeera futures ended firm as arrivals fell for the second conscutive day. Nalini Rao, an analyst with Angel Broking Ltd., said, "The arrivals are lower for the second consecutive day today and then this season we are expecting a crop shortfall. Friday, arrivals were in the range of 12,000 bags compared to a daily average of over 20,000 bags."

Spot jeera increased by more than 12 rupees and ended at 11,139.6 rupees per 100 kg in Unjha, a major trading center in Gujarat.

March contract of jeera futures on the National Commodity and Derivatives Exchange Ltd closed at Rs 11,475 per 100 kg with rise of 0.06 per cent and May contract closed at Rs 11,733 per 100 kg with increase of 0.34%.

Firm Trend At Kochi Tea Sale - March 14, 2009

At the Kochi tea auction, the prices remained firm and arrivals continued to be low. The scarcity of summer rains also continued to sadden production at the tea estates and arrivals remained weak. Export demand was evident for select grades at the dust and leaf auctions. At the dust auction, there was good demand from major blenders for CTC grades.

There was 8,78,000 kg of dust tea on offer where prices of CTC dust grades firmed up. Best CTC grades quoted Rs 95-125, medium CTC was at Rs 87-93, while below medium ranged at Rs 70-78.

There was 1,39,000 kg of leaf tea on offer and high grown varieties witnessed good market and prices moved up. Prices of medium orthodox and smaller CTC grades also witnessed increase. Best Nilgiri grades quoted Rs 100-130, while medium orthodox was at Rs 90-95. Best CTC leaf grades obtained Rs 66-70 and medium CTC leaf was at Rs 62-68.

Turmeric Farmers Asked To Hold Back Stocks - March 14, 2009

The Tamil Nadu Agricultural University's Domestic and Export Market Intelligence Cell (DEMIC) is anticipating the price of turmeric to touch the top around July. The expectation has recommended farmers to store the produce for the next 2-3 months to make the most of profit.

"Our analysis show that the price will rule around Rs 4,300-4,700 a quintal between March and August," the DEMIC Project Coordinator, Dr N. Raveendran, said.

Advising farmers to store the produce till June, he said 'turmeric prices touched a historic high of Rs 4,300 a quintal in July 2008, while it was only Rs 2,870/quintal in January 2008.

Pepper Fell On NCDEX - March 14, 2009

On Thursday, pepper fell on the National Commodity and Derivatives Exchange as investors reduced their positions backed by higher arrivals along with sluggish export demand.

Pepper for March contract lost 0.20 per cent at Rs 10,700 a quintal with a business turnover of 33 lots. April month contract shed 0.15 per cent at Rs 10,800 a quintal with a turnover of 373 lots.

"Higher arrivals from growing regions against sluggish demand is putting pressure on some spice prices at the futures market," an analyst said. Subdued trend in spot markets also put pressure on the prices at futures market here, he added.

Sharp Decline In Domestic Production - March 10, 2009

Sharp decline in domestic production of cloves this year along with similar situation in other origins would push up the prices of this spice in the coming months.

Prices of cloves may go up in the coming months on sharp fall in the domestic production of cloves this year. According to cultivators in Kerala's Idukki and Kollam districts, this year output is lower by around 50 per cent. The crop in Tamil Nadu is also reported a decline, trading sources said.

The total area under cloves is estimated at around 2,200 ha. Tamil Nadu tops with an area of 1,100 ha followed by Kerala 750 ha, Karnataka (250 ha) and Andaman and Nicobar Islands (130 ha). The output, which used to be around 2,000 tonnes, is said to be around 1,400 tonnes this year, they claimed.

At present, demand in India is less and as a result, the prices are holding at Rs 270-300 a kg. but, the market would have an upsurge after mid-March and in April it will become active with the beginning of the next financial year.

Indian Pepper Remained Competitive - March 10, 2009

Indian pepper remained competitive in international market due to the continuous decline in the futures prices in recent weeks along with sharp depreciation of the rupee against dollar. As a result, some sporadic buying interest was observed from the US and Europe last week.

The Indian crop is reportedly lower than that of the previous season due to adverse weather last year and till this year in the major growing state, Kerala. The indigenous production might fall short of the domestic demand which is estimated at above 50,000 tonnes. Sharp depreciation of rupee against dollar is contributing to increase in cost of import of pepper, if the prices of other origins remained at current levels, market sources said.

However, last week the prices on the NCDEX all the contracts witnessed a raise from Rs 119 to Rs 309 a quintal, while on NMCE, it was by Rs 83-240 a quintal. Total turn over on NCDEX went up by 5,709 tonnes to 19,037 tonnes. The total open interest moved up by 280 tonnes to 6,558 tonnes. Open interest for March during the week fell by 775 tonnes to 2,799 tonnes.

Spot prices remained unchanged at the weekend close at Rs 10,200 (un-garbled) and Rs 10,700 (MG 1) a quintal.

According to the International Pepper Community (IPC) weekend report, prices at Kochi were quoted at higher rate during the second half of the week. Demand from domestic, as well as, overseas market, continues to be dull, it said.

Cardamom Prices Plunge - March 10, 2009

At the auction conducted by the Kerala Cardamom Processing and Marketing Company Limited (KCPMC), Thekkady on Sunday, the cardamom average prices dropped.

The average price relieved Rs 9.75 to Rs 488.43 from Rs 498.18 per 1 kg in the last auction. However, the maximum price went up by Rs 40.00 to Rs 640.00 from Rs 600.0 per 1 kg and the volume traded increased to 39,596 kg from 26,769 kg in the previous auction.

Grains And Oilseed Prices Are Declined - March 5, 2009

Global prices of coarse grains along with wheat and oilseeds are declining further during 2009-10. Prices are seen lower on account of cutbacks in production, according to the latest commodity sector outlook of the Australian Bureau of Agricultural and Resource Economics (Abare).

On Tuesday, the Australian Government's independent economic research agency has projected world wheat production at 632 million tonnes (mt) in 2009-10, in its report released at the 2009 Outlook conference. This is against the record 687 mt estimated for the current year. However, consumption is also expected to fall from 648 mt to 628 mt mainly on account of reduced usage of wheat for livestock feed.

Similarly, world oilseeds production is forecast to decrease from 408 mt in 2008-09 to 396 mt in 2009-10, together with a corresponding reduction in consumption from 407 mt to 398 mt.

Also, for coarse grains lower production (from 1,100 mt in 2008-09 to 1,073 mt in 2009-10) is probable to be come with lesser consumption (1,079 mt to 1,070 mt), mirroring reduced demand for feed grains.

Cardamom Prices Shot Up At Auctions - March 4, 2009

The cardamom prices shot up at auctions held in Kerala and Tamil Nadu due to supply squeeze owing to drought conditions prevailing in the growing areas as well as a good demand from both north Indian dealers and exporters. Accordingly the individual average prices grew to Rs 498.73 a kg on Sunday from Rs 482.70 a kg on last Wednesday auction at Vandanmettu.

At the Sunday auction of KCPMC, out of the 28 tonnes of produce arrived, 27 tonnes were sold. The maximum price was Rs 600 a kg while the minimum was Rs 359 a kg. The total arrivals are said to be at 20 tonnes at the CPA auction at Bodinayakannur on Monday. However, the total arrivals as on March 1 stood at 7,205 tonnes as compared to 3,882 tonnes in the corresponding period last season. On the other hand, the sales grew to 6,747 tonnes from 3,611 tonnes last season.

The prices of graded varieties as on March 2 were AGEB Rs 605-615 along with AGB Rs 535-545; AGS Rs 515-520; AGS1 Rs 485-495 a kg. However, the prices in the local market at Bodinayakannur on Monday were AGEB Rs 590-600 followed by AGB Rs 515-525; AGS Rs 495-505 and AGS 1 Rs 475-485 a kg. Bulk was fetching Rs 460-620 a kg.

Prices Of Mustard Seeds May Slips - March 3, 2009

Government of India has announced minimum support price of Mustard Seed (Rabi Crop) at Rs 1830/quintal this year from 1800/quintal last year. Along with this, prices of mustard seed expected to move slightly lower on higher production estimates of mustard seed.

On week ended Jan 22, India's mustard/rapeseed has been planted in 66.46 lakh hectare, up 13.02 % as compared to 58.80 lakh hectare during the corresponding period last year.

However, total area sown under oilseeds (Rabi season) was 92.64 lakh hectare this year, up 5.89 % on Jan 22,2009 as compared to 87.48 lakh hectare last year during the same period. The normal rabi/summer oilseeds area is about 95.16 lakh hectare.

Tea Production In Darjeeling Decreases - March 2, 2009

Short rainfall during November last year is expected to affect the production of Darjeeling tea as well as teas produced in Dooars and Terai in the current tea growing season. This may affect exports of premium first flush Darjeeling tea, which is a major revenue earner for Darjeeling tea estates.

"The situation is alarming without proper sign of new leaves in bushes. Artificial dripping and higher pesticide requirement has increased production cost to nearly Rs 7 per kg of made tea in Dooars and Terai foothills," said NK Basu, principal advisor of Consultative Committee of Plantation Associations (CCPA).

The situation is equally bad in Darjeeling. "Pests are not a major concern in the hills now. But low rainfall will drastically pull down quality and quantity of first flush harvest," said Sanjay Bansal, chairman, Darjeeling Tea Association.

Government To Stricter Norms For Steel Scrap Imports - March 2, 2009

The government is planning to make the norms more stringent for the steel scrap imports. The Directorate General of Foreign Trade is expected to issue a notification this week that will make the importers mandatory to furnish the proof that imported consignments have no traces of radioactivity. As per the senior government official "The notification is expected to be released in a couple of days,".

Accordingly the importers will have to provide a certificate from the designated international agencies that the steel scrap imported is not contaminated with radioactive elements. However, the decision comes after the radioactive elements traces, which were detected in the packaging material of Indian export consignments to countries in Europe in January this year.