Posts Tagged ‘kharif crop’

Centre released Rs.361 crore to the States

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

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Centre released Rs.361 crore to the States

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Centre releases Rs. 361 crore to States :

The Centre on Tuesday released to the State Rs.361 crore as its share of the 2008 kharif crop insurance.

Minister N. Raghuveera Reddy said the State and Central governments had sanctioned Rs.800 cr. under the crop insurance scheme claimed by 7.5 lakh farmers.

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Out of which, the State already released its share of Rs.356 crore a month back.

The distribution process of the released funds would be completed in two-three days.

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🙂

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In Other major Commodities Updates, we can read about the stories of flour mills across the country buying of wheat from government under OMSS via electronic auction process on NCDEX Spot Exchange and on NSEL.

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Also we will read of the story related to NCDEX, which is set to launch online spot trading in Rajasthan soon.

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Flour mills to buy wheat from govt through e-auction:

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Come January and flour mills across the country will start buying wheat from government under open market sales scheme (OMSS) via electronic auction process on NCDEX Spot Exchange and National Spot Exchange (NSEL).

State-owned Food Corporation of India (FCI) has decided to use electronic trading platform of both the bourses to offer wheat under OMSS.

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Under OMSS, FCI has offered 1.5 million tonnes wheat in the first tranche in four states — Delhi, Haryana, Karnataka, and Andhra Pradesh.

The minimum quantity has been fixed at 100 tonnes and then in multiples of 10 tonnes.

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🙂

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NCDEX to start online spot trading in Rajasthan:

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NCDEX Spot Exchange (NSPOT), a spot trading arm of the country’s largest agri commodities futures trading platform, National Commodity and Derivatives Exchange (NCDEX), is all set to launch online spot  trading in Rajasthan soon.

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The exchange has already got permission from the state government to launch spot trading in rapeseed/mustardseed, chana and guarseed in the state.

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With this, the exchange has secured permission to set up Spot exchanges in the states of Gujarat, Karnataka, Maharashtra, Haryana, Bihar, Rajasthan and Kerala.

It also has APMC cess paid contracts in Madhya Pradesh.

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🙂

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

INFLATION – “THE SILENT CREEPER” Final Part

Hello Friends here we come up with an extension of our previous blog, INFLATION

–  “THE SILENT CREEPER” Part 2.

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INFLATION – “THE SILENT CREEPER” Part 3

In previous Blog we had touched upon the possible Measures to check inflation.

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Now in this part we would look into other concerns in Indian economy regarding the parameters to check inflation.

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Concerns in Indian Economy Regarding Inflation :

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Apart from reasons and measures to check inflation, other concern in Indian economy is the parameters to check inflation.

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It is well known that India is the only country which considered WPI (Wholesale Price Index) while rest of the countries measured CPI (Consumer Price Index).

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WPI consists of 435 goods over 1993-94, as base year in which the weightage of food items is only 16%, which has large weightage of consumer spending in India.

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Though WPI in India is still in single digit, if we consider CPI it is already in double digit due to dearer farm articles and their higher weightage in measures.

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In CPI, food articles have 50% weightage.

Hence there is a wide gap between the weightage of food articles of WPI and CPI, which are unable to give the clear pictures.

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Furthermore, 2/3rd of the price quotations used to calculate the WPI are sourced from only four metros.

Hence to get the real picture, area should be widened.

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comparison between food inflation and WPI from January, 2008 to October, 2009.

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In the above chart, it is a comparison between food inflation and WPI from January, 2008 to October, 2009.

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Line chart is representing WPI monthly inflation whereas bar chart is indicating food article inflation.

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It appears that food article inflation is on continuous rise while WPI monthly inflation saw both side movements.

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It has started its northward journey in the month of March-April and it is still continued.

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Arrival of kharif crop is less likely to cool it as we are expecting 18% decline in kharif crop.

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Hence downside will be limited, rather it may move in a range with upside bias.

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The words of future RBI (Reserve Bank of India) has revised its outlook for inflation and expecting that it should be between the range of 5% to 6-6.5% for the year ending March 2010.

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There is a fear in the economy that the real impact of almost 18% drop in kharif rice production is to reflect in inflation.

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It would occur when kharif produce; rice, pulses, oilseeds and cereals would start coming in the market.

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With witnessing favourable weather conditions, economy is expecting strong rabi produce, which may cool off inflation of food articles to some extent.

However, we cannot rule out the possibility adverse weather.

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Ultimately what matters is final produce and yield.

Government has to take care of everything like, demand –supply equilibrium, money supply, distribution etc.

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Otherwise it will become nightmare for “aam admi” and hamper the economic growth.

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🙂

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

Rising Sugar Prices Threatens to Make Coming Festival Season Bitter :(

Skyrocket prices of Sugar

Rising sugar prices are threatening to make the coming festival season bitter and are causing concerns for many consumers.

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Moreover, in order to meet increasing demand, India will be forced to import sugar in large quantities and this in all possibility will further increase sugar prices.

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However, local production has plunged to 14.5 million tonnes in the 2008-09 with demand at 23 million tonnes, the deadline for duty-free raw sugar imports has been extended by nine months to December 2010.

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Additionally, the government is going to start a fortnightly sale of non-levy sugar with the September quota set at 2.11 lakh tonnes 🙂

This year most deficits have been met by opening stocks and next year they’ll need much larger imports of about 6 million tonnes of raw sugar and 1 million tonnes of white sugar.

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Moreover, nearly 4 million tonnes of sugar have been already purchased by the Indian industry, while India’s sugar shopping spree abroad has sent prices of refined sugar in the global market skyrocketing.

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Additionally, it is said that the world market has recorded a 28-year high and has shot up 60% to $610 per tonne in August 2009 from a level of $380 per tonne in October 2008.

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India Will Import 30% of Its Sugar Following Drought :(

India Will Import 30% of Its Sugar Following Drought

India, the world’s biggest sugar consumer, may depend on imports to meet almost a third of its demand next year as a drought in the major growing regions threatens cane yield.

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Local sugar consumption may total 23 million metric tons in the year beginning Oct. 1  and 30 percent of the supplies will be met through imports.

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India’s production in the season starting Oct. 1 will lag behind the demand of 22 million tons.

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Indian authorities are raiding hoarders to boost the availability of sugar, edible oils and lentils during the August-to-December festival season and cool prices.

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India has set limits on the amount of sugar that traders and institutional users can stockpile as it faces a shortfall in supplies for a second year.

The production of sugar in India during year 2008 and 2009 sugar season has not been adequate to meet the domestic demand of the country.

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India’s dwindling stocks and rising demand have helped raw sugar futures surge to the highest in nearly three decades on prospects of large purchases by the world’s top sugar consumer.

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Weak monsoon rains have further raised supply concerns in India.

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Beside that, there is another Agri Update that Cotton and kharif crop has started arriving in mandis of Punjab and Haryana.

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Although in small quantity, but both the states are hoping to achieve combined cotton output of 45 lakh bales during this year in view of surge in area under crop.

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“As cotton growers have started bringing their crop to grain markets, almost 500 bales per day are arriving in Punjab and 350 bales in Haryana,” traders said.

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The price of fresh cotton is ruling at Rs. 2,550 to Rs. 2,700 per quintal, they said while adding that cotton arrivals are going to pick up in mandis in coming days.

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Cotton crop was the only crop during this Kharif season 2009-10 which has seen increase in its area in both Punjab and Haryana despite the fact that area under other crops such as paddy, sugarcane guar went down considerably due to deficient rains.

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India’s dwindling stocks and rising demand have helped raw sugar futures surge to the highest in nearly three decades on prospects of large purchases by the world’s top sugar consumer.

Weak monsoon rains have further raised supply concerns in India.

Where are we heading to? Part 1

Growth in Indian Industry

The Indian economy’s business sentiment has improved indicating a path of recovery.

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Let’s see, why do we say this?

A surprise improvement was witnessed in the IIP numbers for June 2009 at 7.8%.

The WPI based inflation has softened to below zero level.

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However, the prices of items of mass consumption (food articles) show no signs of softening and have risen substantially due to supply side constraints.

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The performance of inward investments has been fairly well.

The Foreign Direct Investment flows surged 13% at $4.3 bn for April-May 2009-10.

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Painting a picture of a resilient economy, Finance Minister believes the economy will grow by more than 6% despite a fear of drought and the decline in the sowing of the kharif crop, such as rice.

The strength of the economy in the slowdown is the large services sector, which has, historically, been less affected by cyclical downturns than manufacturing, a strong farm sector, robust savings rate, ambitious infrastructure development programme and upbeat foreign investors.

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The 224-million-tonnes cement industry is yet again set to strike a growth of 10 per cent in June.

The production numbers from the top cement makers are anything to go by, the continuous robust growth will be maintained.

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The Rs 82,000 crore Indian FMCG industry primarily seeking the implementation of the GST (Goods & Services Tax) by April 1, 2010 in the upcoming Union Budget, expects fiscal measures will spur growth of the FMCG sector in rural as well as urban India.

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Further, in a sign of confidence in the Indian markets, Foreign Institutional Investors pumped in over $6 billion, or about Rs. 29,940 crore this year, with over $1 billion coming in July alone.

An analysis of FIIs activity shows that overseas investors are the net purchasers of Indian stocks worth $6.18 billion (Rs 29,940.30 crore) from January to July this year.

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Also, with the India-Asean (Association of South-East Asian Nations)  that inked the long awaited Free Trade Agreement (FTA) for duty-free import and export of 4,000 products over a period of eight years at the Asean economic ministers meeting held in Thailand, the India-Asean trade is likely to surpass $50 billion by 2010.

The Indian economy’s business sentiment has improved indicating a path of recovery. Let’s see, why do we say this?

A surprise improvement was witnessed in the IIP numbers for June 2009 at 7.8%. The WPI based inflation has softened to

below zero level. However, the prices of items of mass consumption (food articles) show no signs of softening and have

risen substantially due to supply side constraints. The performance of inward investments has been fairly well. The

Foreign Direct Investment flows surged 13% at $4.3 bn for April-May 2009-10.

Painting a picture of a resilient economy, Finance Minister believes the economy will grow by more than 6% despite a fear

of drought and the decline in the sowing of the kharif crop, such as rice. The strength of the economy in the slowdown is

the large services sector, which has, historically, been less affected by cyclical downturns than manufacturing, a strong

farm sector, robust savings rate, ambitious infrastructure development programme and upbeat foreign investors.

The 224-million-tonnes cement industry is yet again set to strike a growth of 10 per cent in June. The production

numbers from the top cement makers are anything to go by, the continuous robust growth will be maintained.

The Rs 82,000 crore Indian FMCG industry primarily seeking the implementation of the GST (Goods & Services Tax) by

April 1, 2010 in the upcoming Union Budget, expects fiscal measures will spur growth of the FMCG sector in rural as well

as urban India

Further, in a sign of confidence in the Indian markets, Foreign Institutional Investors pumped in over $6 billion, or about

Rs.29,940 crore this year, with over $1 billion coming in July alone. An analysis of FIIs activity shows that overseas

investors are the net purchasers of Indian stocks worth $6.18 billion (Rs 29,940.30 crore) from January to July this year.

Also, with the India-Asean (Association of South-East Asian Nations) Free Trade Agreement (FTA) that inked the longawaited

Free Trade Agreement (FTA) for duty-free import and export of 4,000 products over a period of eight years at the

Asean economic ministers meeting held in Thailand, the India-Asean trade is likely to surpass $50 billion by 2010.