Archive for the ‘Enviroment’ Category

Weekly Update 3rd- 7th May 2010

The week started on a positive note on the back of good global tidings. Markets worldwide have gained after Greece decided to tap into the EU- IMF loan, but the rally could not be sustained and fell like nine pins as heightened sovereign debt troubles in Europe sent global markets in a bit of a tizzy.

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On the global front, FOMC maintained the target range for the federal funds rate at 0 to 1/4 percent as the economy is still seeing high unemployment, modest income growth, employers reluctance to add to payrolls & bank lending contraction. It said that it would continue to monitor the economic outlook and financial developments and would employ its policy tools as necessary to promote economic recovery and price stability. Japan saw unemployment rate climbing to five percent indicating job rebound may moderate. Europe equity markets fell after Standard & Poor’s downgraded three Eurozone members.

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Investors withdrew money from the Europe equity funds & debt funds saw net inflow. Closer home too, markets witnessed volatility as traders rolled over their positions in the derivatives segment from the April 2010 series to the May 2010 series. On the flip side the Q4 March 2010 corporate earnings announced so far have been good with net profit of a total of 441 companies rose 28.70% to Rs 29125 crore on 36.40% rise in sales to Rs 249959 crore in the quarter ended March 2010 over the quarter ended March 2009. The IMF is optimistic about the growth of Indian Economy. It has estimated that India’s $1.2 trillion economy will expand 8.8% this year and 8.4% next year, higher than it projected in January. While RBI expects India’s economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias expecting normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The IMD has predicted normal monsoons in 2010 at 98% of Long Period Average subject to an error of (+/- 5%). Besides the passing of the Finance Bill 2010 by FM on Thursday with some minor changes in tax proposals may boost sentiment as the government has pledged to the path of fiscal consolidation rather than political opportunism.

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Overall the world markets were quite volatile in the week gone by with wild swings on both sides. Shanghai and Hang Seng could not recover from the fall though other markets recovered. Base metals also took a sharp correction. The strength in the stock markets is there more in cash stocks rather than front line heavy weight index stocks. Nifty has support between 5200-5150 levels & Sensex between 17400-17300 levels.

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Recent moves in commodities are showing that they are moving in different directions. It is indicating the state of uncertainty, where commodities are moving on their own fundamentals. Safe haven buying may keep gold in upper range. While after a steep fall, base metals may try to trade in a range.

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Approaching summer demand amid availability of ample crude stocks can keep crude oil in a range. Some agro commodities viz., pepper, jeera, chilli, cardamom, mentha etc., may surge on good overseas as well as domestic demand.

NEWS ROUND UP

Economy

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·IIP for the month of January grew 16.7% on year. The mining sector grew 14.6% in the month while the manufacturing sector grew 17.9%. The electricity sector witnessed a growth of 5.6% in the month.

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India’s annual food price index increased 17.81% as on week ended February 27, slower than the 17.87% growth recorded last week. A year ago, food prices were up 7.54%.

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Healthcare

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·Fortis Healthcare announced the largest overseas acquisition by an Indian company in the healthcare space, buying the entire 23.9 per cent stake held by TPG Capital in Singapore’s Parkway Holding Ltd for $686 million (Rs 3,119 crore).

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Capital Goods

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·ABB Ltd. has bagged orders worth $22 million (nearly Rs 100 crore) from Haryana Vidyut Prasaran Nigam for the supply of four sub-stations. The company would deliver four sub-stations equipped with automation, protection and control systems to HVPNL.

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·Areva T&D India has bagged a contract worth Rs 400 crore from Uttar Pradesh(UP) Power Transmission Corporation for building a substation. The company’s transmission and distribution division will build a 765 KV extra high voltage substation at Anpara thermal plant in UP.

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·Thermax announced a JV with US-based Babcock & Wilcox Power Generation Group to manufacture super-critical boilers in the country. The total investment in the JV is estimated at Rs 700 crore.

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·McNally Bharat Engineering Company has bagged an order worth Rs 245.42 crore from Steel Authority of India Ltd for infrastructure related works at Rourkela steel plant. The contract is for inter-plant transportation facilities at Rourkela steel plant.

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Mining & Minerals

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·State-owned miner NMDC is planning to invest around Rs 2,400 crore to lay a pipeline between its Chhattisgarh plant and Visakhapatnam in Andhra Pradesh.

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Realty & Construction

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·Gammon India has bagged an order worth Rs Rs 631.81 crore from Delhi Tourism and Transportation Development Corporation for construction of bridge. The company has received the project for construction of bridge and its approaches over river Yamuna, Delhi.

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·Hindustan Construction Company (HCC) has plans to invest around Rs 50,000 crore in its township project in Lavasa, near here, over the next 10-12 years ·Hindustan Construction Company (HCC) along with its joint venture partner has bagged a contract worth Rs 197 crore from North Frontier Railway for
development of a tunnel in Imphal.The company has bagged the project along with its JV partner Coastal Projects Ltd for developing a railway tunnel between Jiribam and Tupur in Imphal.

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·Nagarjuna Construction Company secured new contracts aggregating to Rs 1,221 crore. The first order is of two contracts valued at Rs 647 crore from Hyderabad Growth Corridor. In addition, it has secured three contracts worth Rs 358 crore from Maharashtra State Electricity Distribution.

·Construction firm Ahluwalia Contracts India is in acquisition talks for specialised construction firms, with a war-chest of up to Rs 100 crore, and hopes to sew up the deal by June. The New Delhi-based firm sees a 25-30 per cent organic growth for next five years and acquisitions of up to Rs 100 crore could be funded from its internal resources.

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Banking & Finance

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·Rural Electrification Corporation Ltd (REC) signed a memorandum of understanding (MoU) with NTPC Tamil Nadu Energy Company Ltd (NTECL), a joint venture company set up by NTPC and the Tamil Nadu Electricity Board (TNEB), to fund a power project in North Chennai. Of the total project cost, 30 per cent is being met by equity and balance through debt.

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Distilleries

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·The country’s largest liquor maker United Spirits is undertaking an aggressive promotion campaign for its recently launched energy drink ‘Romanov Red’.

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The company will invest over Rs 5 crore in the next one year on promotions, as it aims to garner a 15 per cent share in the domestic energy drink market that stands at around 1.5 million cases (of 24 cans) per annum.

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Stay Tuned for More updates 🙂

Futures Trading in Rice, Sugar and Pulses Should be Banned

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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'Futures trading in rice, sugar and pulses should be banned'

‘Futures trading in rice, sugar and pulses should be banned’:

A parliamentary panel today suggested that futures trading should be banned in case of wheat, rice, sugar and some pulses till the country becomes self sufficient in these food items.


The Estimates Committee asked the government to bring a new legislation to control the retail prices of essential commodities like rice,wheat, pulses, edible oils, sugar, milk and vegetables.


On futures trading, the report said: “Since food security of the country is at the stake, the Committee recommends that futures trading in wheat, rice, tur dal, urad dal and sugar should be banned till the country achieves self-sufficiency in the production of these items on a continuous basis”.


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In Other major Commodities Updates we can see exports of Spice declining and on the other hand price of pulses rising up 80% in a year time.

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Spice exports decline 1.3% in April-October:

Exports of spices fell 1.3 per cent in volume and 1.6 per cent in value during the April-October period of the current financial year.


According to the latest estimates of Spices Board, total exports in the period were 280,885 tonnes valued at Rs 3,031.59 crore against 284,560 tonnes valued at 3,080.25 crore in the same period last year.


Pepper exports suffered a serious setback as the figures dropped to 11,500 tonnes valued at Rs 179.16 crore as against 14,750 tonnes valued at Rs 246. 70 crore in the same period last year.


Export of chilli also declined to 100,500 tonnes valued at Rs 706.50 crore as against 121,500 tonnes valued at Rs 660.17 crore.


Coriander exports had a better performance at 25,250 tonnes valued at Rs 128.12 crore against 17,100 tonnes valued at Rs 116.80 crore.

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Pulse prices rise up to 80 per cent in one year:

The government today said prices of pulses have surged by up to 80 per cent in the national capital over the last one year.


While prices of tur have gone up by 80 per cent in the last one year to Rs 90 a kg, that of moong dal surged 74 per cent to Rs 82, according to the data presented by Food and Agriculture Minister Sharad Pawar in a written reply to the Lok Sabha.


Even import of about 16 lakh tonnes of pulses between April and October has not eased pressure on the prices, the data showed.

Not just pulses, prices of sugar have almost doubled to Rs 38 a kg.

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Rabi Sowing Picks Up in State

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Rabi sowing picks up in State

Rabi sowing picks up in State:

The recent rain in several parts of Karnataka seem to be playing a key role in rabi sowing with farmers going in for large-scale coverage of jowar, Bengal gram and sunflower, particularly in the northern districts.


As sowing is in progress, data from the Agriculture Ministry shows that rabi crops were sown on 27.05 lakh hectares of land accounting for 73 per cent progress against the target of 37 lakh hectares as on November 18.


Sowing of maize, wheat, Bengal gram and sunflower continued in the northern districts while transplanting of paddy and sowing of black gram was in progress in parts of Dakshina Kannada and Udupi.

Bengal gram has been sown on 8.78 lakh hectares of land against 7.67 lakh hectares during the corresponding period last year, while jowar, the major rabi crop, has been sown on 9.25 lakh hectares, wheat on 1.9 lalkh hectares, and sunflower on 2.90 lakh hectares.


Overall coverage of pulses such as Bengal gram, horse gram, black gram, green gram, cowpea and avare stood at 9.93 lakh hectares against the coverage of 8.99 lakh hectares last year.


However, the area under cereals — rice, jowar, ragi,maize, wheat, and minor millets — trails at 12.32 lakh hectares against 14.39 lakh hecatres during the corresponding period last year.

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In Other major Commodities Updates we can see  FMC has recently instructed bourses to ensure compliance of the PMLA and Sugar production in India may exceed estimated figures.

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Commodity bourses must follow PMLA norms : “FMC”

In order to step up the regulatory grip on commodity derivatives market, Forward Markets Commission (FMC) has recently instructed bourses to ensure compliance of the Prevention of Money Laundering Act 2002 (PMLA) by their members.


“This is more of a pre-emptive step to prevent unscrupulous money coming into our (commodity futures) market,” BC Khatua, chairman, FMC, said.

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Sugar output may beat estimates “Survey”:

Sugar production in India, the world’s second-largest grower, may be 11 percent more than estimated after farmers boosted planting and yields improved because of increased fertiliser use.


Output may jump to 17.68 million metric tonne in the season started Oct. 1, according to interviews with 631 farmers across six states by Geneva-based SGS SA for Bloomberg.


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Govt Decides Against Rice Imports

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Govt Decides Against Rice Imports

Govt decides against rice imports:

In a calculated move to signal categorically to the world market that India was not in a desperate situation with respect to rice, the government said on Friday that it will not import rice for now.

The immediate implication of this move is that retail prices of rice, up 15 per cent over last year, will remain firm at least until early next year.

Rice output is estimated to have dropped 15 million tonnes due to poor monsoons this kharif.

The government has, over the last two days, put in place strictures that will force traders to report purchases of more than 10,000 tonnes of rice in a bid to check prices.

Punjab has also imposed stock holding limits on traders and millers for both rice and pulses.

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In Other major Commodities Updates we can see how Government has bowed down to demands of Farmers after their mass protest in capital this week.

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Government to amend new sugarcane price rule:

The government on Friday said it would amend a new sugarcane pricing rule, bowing to protests held in the capital by farmers demanding higher prices for their produce.

The government would delete the contentious part of the new cane pricing rule, Railways Minister Mamata Banerjee told reporters after a meeting of senior ministers.

Cane farmers believe the new cane price rule, which puts the onus on state governments if they decide to raise the cane floor rates fixed by the federal government, will curtail their bargaining power.

Earlier, Farmers from Uttar Pradesh (UP) state in northern India, which produces almost half of the country’s cane, have been on warpath for about three weeks to press for higher prices, forcing Prime Minister Manmohan Singh to consider changes in fixing cane prices.

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CORN- The Un-discovered Legend Part 2 :)

Hello Friends here we come up with an extension of our previous blog, CORN………. “The Un-discovered Legend” Part 1

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CORN- The Un-discovered Legend Part 2

In previous Blog we had touched upon few points related to importance of Maize crop in Indian commodity market and its relevance in the context of Indian Scenario 🙂

In this blog, we would get to know of Potential sources of demand for Maize crops and industrial demand of maize crop.   Also read about the PVO (Price-volume-open Interest) Analysis of the Crop.

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Potential sources of demand:

The apparent increase in consumption demand has been sourced from the preference for corn based food products for human consumption as well as increased use in feed industries.

Human consumption – corn flakes, corn oil, corn flour, etc.,

Feed industry – poultry & animal feed

Ethanol – maize has already proved to be a potential source of ethanol.

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Corn consumption has seen a rapid growth during last few years.

Indeed, consumption patterns have changed at an accelerating pace especially during the winter season; from the time when it has
been introduced in numerous shopping malls around the world in the form of popcorns, baby corns etc.

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Industrial demand:

This commodity has placed itself in an advantageous position & made its presence felt in the industry.

Maize is a key ingredient in animal feed mix, & being the animal feed sector growing at a healthy pace with increasing demand for
meat and milk and milk products, coupled with stagnation in cattle population, there is a rising need to feed the existing population
of cattle with quality feeding.

Therefore, this has opened a window of opportunity for strengthening of global corn prices, which in turn is triggering enormous
demand for Indian maize in the Asian regions.

With the growing demand & expansion of starch sector, the overall demand for maize is likely to grow at a brisk pace.

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Change in % from 2008-09 to 2009-10 (India) Source: USDA

Area Harvested: 11.44%

Beginning Stocks: 51.72%

Production: 0.10%

Total Supply: 1.60%

Total Consumption: -1.1%

Ending stocks: 12.55%

Total Distribution: 1.60%

These positive figures indicate that India has sufficient & comfortable stocks of maize.

In 2009-10 the area harvested (India) is expected to increase by 11.44%, while the consumption is expected to remain almost flat or marginally down in next year.

The ending stocks are also quite high which can pressurize the prices in long term.

In a monthly update on 10th November 2009, USDA cut the corn forecast by 1 percent to 12.921 billion bushels (328 million tonnes).

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PVO (Price-volume-open Interest) Analysis:

Maize futures have proved the old saying “Slow & steady wins the race”.

The prices, volume & open interest in maize futures both in NCDEX & CBOT which had taken a backseat during the beginning of the
year 2009, have been rising again without much volatility in their behaviour.

The prices have been rising from the levels of Rs.795 to Rs.965 during January to November’09, which resulted into bull-run and resultantly futures made a high of 1015 levels on 3rd November ’09, giving a return of 21% till now.

Since the month of March ’09 prices have been seen rising witnessing some corrections during their journey; however factors like
higher international prices & continuous demand from starch & poultry industries have supported the prices.

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CORN………. “The Un-discovered Legend” Part 1

Hello Friends here we come up with another write up on “Commodity Corner Series”.

Here we would touch upon the importance of Maize crop in Indian commodity market and its relevance in the context of Indian Scenario 🙂

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CORN………. “The Un-discovered Legend”

Maize, also known as corn, is a cereal which is an important crop after rice and wheat.

The domestication of maize has been dated back as far back as 12,000 years ago. Today, maize is widely cultivated throughout the world, in a greater size with top producing countries like United States, China, Brazil, France, Indonesia, India and South Africa.

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Indian Scenario:

Andhra Pradesh is now the largest producer contributing around 21% of annual maize production.

India ‘s area harvested of maize and yield have risen by mainly on account of rising production of single cross hybrids seeds, its demand and increasing acceptability among farmers.

In India, its cultivation extends from the hot arid plains of Rajasthan and Gujarat to the wet hills of Assam and Bengal.

There are three distinct seasons for the cultivation of maize:

the main season is kharif;

next is Rabi in Peninsular India and Bihar and

in spring in northern India.

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Normally, higher yields have been recorded in the rabi and spring crops.

Over 85 per cent of the maize acreage is sown under rain-fed conditions during the monsoon when over 80 per cent of the annual rainfall is received.

However, this year due to the erratic monsoon production has been affected, as a result of which maize prices have been in uptrend since the withdrawal of monsoon from the country.

During 2008-9, Indian exported 3 million tonnes of maize and 12,000 tonnes of maize seed worth of Rs 2,400 crore and Rs 2,000 crore respectively.

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Stay Tuned for more on this.

In next blog we would touch upon the issues like Potential source of demand for Maize crop, Industrial Demand and PVO (Price-volume-open Interest) of MAize crops.

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Crop Forecasting – “Past – Present – Future Part 2″

Hello Friends here we come up with an extension of our previous blog, “Crop Forecasting – “Past – Present – Future Part 1”.

Crop Forecasting - “Past - Present – Future Part 2

Crop Forecasting - “Past - Present – Future Part 2

Here we would get to know of that what are the procedures of crop estimation survey and on what basis ,final estimates arrived at !

PROCEDURE

In India, the Directorate of Economics and Statistics (DES) releases estimates of area, production and yield in respect of principal crops of food grains, oilseeds, sugarcane, fibers and important commercial and horticulture crops.

DES estimates the crop production by multiplying the area estimates by corresponding yield estimates.

From the point of view of collection of area statistics, the States in the country are divided into three broad categories:

i. States and U.Ts. which have been cad-astrally surveyed and where area and land use statistics are built up as a part of the land records maintained by the revenue agencies (referred to as “Land Record States” or temporarily settled states).

ii. The states where area statistics are collected on the basis of sample surveys.

iii. In the hilly districts where no reporting agency had been functioning, the work of collection of Agricultural Statistics is entrusted with the village headmen of the reporting area.

The second most important component of production statistics is yield rates.

The yield estimates of major crops are obtained through analysis of Crop Cutting Experiments (CCE) conducted under scientifically designed General Crop Estimation Surveys (GCES).

The primary objective of GCES is to obtain fairly reliable estimates of average yield of principal food and non-food crops for each of state and UTs which are important from the point of view of crop production.

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BASIS OF FINAL FIGURES

Final estimates of production based on complete enumeration of area and yield through crop cutting experiments become available much after the crops are actually harvested.

However, the Government requires advance estimates of production for taking various policy decisions relating to pricing, marketing, export/import, distribution, etc.

The government releases four advance estimates of farm production across the year apart from making a final projection.

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First Adv. Estimates for Crop Production: Released

·The Government on 3rd November, 2009 released First Advance Estimates of production of major crops grown in the country.

The production figures of various crops are as follows in Million Tonnes (MT):

·Kharif Foodgrains – 96.63 MT

o Rice – 69.45 MT o Coarse Cereals – 22.76 MT o Maize – 12.61 MT o Jowar – 2.55 MT

o Bajra – 5.83 MT o Kharif Pulses – 4.42 MT o Tur – 2.47 MT o Urad – 0.88 MT

o Moong – 0.52 MT

·Kharif Oilseeds – 15.23 MT

o Soyabean – 8.93 MT o Groundnut – 4.53 MT

·Cotton – 23.66 million bales of 170 kg each.

·Jute & Mesta 10.24 million bales of 180 kg each

·Sugarcane – 249.48 MT

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The first advance estimates put the kharif foodgrains estimates for 2009-10 at 96.63 million tonnes (MT) as against 115.33 MT in the first advance estimate of 2008-09.

Estimated rice output is lowered by 13.8 million tonnes, total coarse cereals output by 4.6 million tonnes while that of pulses is down by 0.3 million tonnes.

The reason for lowering may be that the drought in about half the country has jeopardized the fate of most summer-sown crops.

The low crop estimates are expected to firm up prices & will further impact food prices for key farm commodities, fuelling food inflation higher,which are already witnessing new levels.

CROP FORECASTING – “PAST – PRESENT – FUTURE”

Hello Friends here we come up with our another write up on “SMC Gyan Series

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CROP FORECASTING - “PAST - PRESENT – FUTURE”

CROP FORECASTING - “PAST - PRESENT – FUTURE”

Here we would get into the nitty gritties of CROP FORECASTING.

Why is it required and what are the objectives of CROP ESTIMATION SURVEY?

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Agriculture occupies a dominant place in the economy.

It is the main source of livelihood of the majority of the population of the country.

Making available food-grains sufficiently to this huge population of the country throughout the year is very much necessary, & this needs making an advance plan or estimation to predict crop yields.

Crop estimation is a “MUST” for agriculture.

There are number of reasons why a good estimation is required.

Accurately estimating the size of the crop will take the pictures or the scenario size of the crop just before harvest, increasing farming costs for that year.

Overestimate the size of the crop will mean that the quality or quantity may not be achieved.

Therefore for the accurate results, many research advance techniques are used.

A sort of track record is maintained for maintaining & achieving the accuracy of crop estimation.

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OBJECTIVE OF CROP ESTIMATION SURVEY:

The main objectives of the crop estimation survey are:

i. To provide estimates of area under and production of principal food and non-food crops with a high degree of precision at the block/ district/state levels.

ii. To provide estimates of productivity of different crop at block/district/state levels.

iii. To collect useful ancillary information on the existing cultivation practices in the State.

iv. To throw lights on the cropping pattern of the State/Districts/Blocks etc.

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Stay Tuned for more on this where we would get to know of that what are the procedures of crop estimation survey.

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Vegetable Prices to Ease by January : Planning Commission

Hello Friends here we come up with the Latest Major Agri-Commodities updates from various parts of the country.

Vegetable Prices to Ease by January : Planning Commission

Vegetable Prices to Ease by January : Planning Commission

Planning Commission Deputy Chairperson Montek Singh Ahluwalia Sunday said he expected vegetable prices to ease by January.

“At the end of a bad monsoon, the big pressure is on vegetables.

The annual inflation rate for food articles was sharply higher at 13.39 percent for the week under review.

Similarly, the annual rise in the index for pulses was 23.44 percent and that for cereals was 11.15 percent.

He also said that “By December-January, you will see at least something (fall in prices) for vegetables, there will be a different position,” Ahluwalia added.

“It (vegetable) is not something you can import, but in general, certainly in management of public distribution system, we are in a strong position as far as stocks are concerned,” he contended.

“There is more than enough food stock in the country. We do not have to worry on that score.”

The Reserve Bank of India and the government have both warned that India’s annual rate of inflation based on wholesale price index for all commodities would rise to 6-6.5 percent by March, while the Prime Minister’s Economic Advisory Council has pegged it at 6 percent.

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In Other major Commodities Updates we can see that NMCE has kick started trading in gold guinea contract. 🙂

NMCE kicks starts trading in gold guinea contract:

National Multi Commodity Exchange of India (NMCE), the first commodity exchange of the country, has started trading in gold guinea contract to reach to the masses.

The commex has tied-up with Muthoot Group to set up multiple delivery centres.

The guinea would be a Muthoot branded BIS certified serially numbered,available in a tamper proof packing.

The purchase/delivery of the gold guinea will be made available through the Muthoot Finance’s 22 centers across the country, which include Ahmedabad, Kolkata, Jaipur, Mumbai, Indore, Delhi, Rajkot, Kanpur, Lucknow in the North and Trivandrum, Kollam, Kottayam, Calicut, Chennai, Coimbatore, Madurai, Truichi, Bangalore, Mangalore, Hyderabad, Trichur.

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