Posts Tagged ‘pulses’

Ace Derivatives & Commodity Exchange

Ace Derivatives & Commodity Exchange with over five decades of impeccable experience in commodity trading, has recently transformed itself and established an online multi-commodity platform with a pan-India presence. Kotak Group is the anchor investor in ACE Commodity Exchange with a 51 per cent stake, while Haryana”s Hafed has a 15 per cent interest and banks like Bank of Baroda, Union Bank and
Corporation Bank have an over 14 per cent stake. The remaining equity is held by Ahmedabad Commodity Exchange members.

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Products offered

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Ace offers futures trading the following commodity groups:

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Bullions: Gold, Silver

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Energy: Crude oil, Natural Gas

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Agri

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•Castor Seed (Ex-Warehouse Ahmedabad)

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•Mustard Seed (Ex-Warehouse Jaipur-inclusive of all taxes but exclusive of Sales tax/ VAT)

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•Soybean Ex-Warehouse Indore -inclusive of all taxes but exclusive of Sales tax/VAT)

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•Refined Soy Oil (Ex-Tank Indore-Inclusive of all Taxes and Levies)

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•Pulses

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•Chana

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•Spices

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•Turmeric

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The Kotak-anchored exchange started futures trading in soybean, soyoil, rape/mustard seed, chana and castor seed. With the launch, the first set of contracts will be available for trade for delivery on November 20, December 20 and January 20.

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The lot size of trading is fixed at 10 tonnes of each contract. According to the exchange data, the castor seed contract for December-expiry opened at `3,442 a quintal, chana at `2,440 a quintal, soyabean at `2,244 a quintal, mustard seed at `573 for every 20 kg and refined soy oil at`545.90 for every 10 kg.

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Trade Timings:

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Agri: 10:00 a.m. to 05:00 p.m. (Monday to Friday)

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10:00 a.m. to 2:00 p.m. (Saturday)

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Bullion/Metals: 10:00 a.m. to 11.30 p.m. (Monday to Friday)

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10:00 a.m. to 2:00 p.m. (Saturday)

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Risk Management

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The Exchange assumes the counter party risk by guaranteeing trade settlement. The Risk Management framework of the Exchange ensures timely settlement.

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More hands working on…..

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Haryana State Cooperative Supply and Marketing Federation (Hafed) is planning to set up spot exchanges of the recently launched Ace Derivatives and Commodity Exchange (ACE) in mandis soon. The association of Hafed with the ACE will help it in playing the role of an aggregator and a risk manager on behalf of thousands of farmers, who will be motivated to become participants of the ACE in the coming decade.

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In addition to its convenient trading platform, Ace provides a robust clearing & settlement infrastructure that supports the complete process of trade intermediation – including registration of trades, settlement of contracts and mitigation of counter party risk; giving traders the peace of mind in times of increased market volatility.

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OUR Websites:  http://www.smcindiaonline.com,http://www.smccapitals.com,
http://www.smctradeonline.comhttp://www.smcwealth.com

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MINIMUM SUPPORT PRICE…… “The Farmer’s Armor”

MSP is a part of agricultural pricing policy of the central government. It is considered as a form of market intervention and also as one of the supportive measures (safety nets) to the agricultural producers.

In the phase of liberalization, MSP has a strong linkage to the market. In this situation, three important aspects deserve attention:

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(i) insulating the farm producers against the unwarranted fluctuations in prices, provoked by higher production and the international price variations and

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(ii) creation of an incentive structure for the farm producers in order to direct the allocation of resources towards desired crops and

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(iii) insulating consumers against sharp price rise, which may have been created by monsoon failure or even by vested interest by creating artificial scarcity. The focus is to providing remunerative prices for the cultivators.

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ROLE OF CACP

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The Commission on Agricultural Costs and Prices (CACP) discusses the price situation of various commodities with the representatives of the State government and various stakeholders to declare the prices of any agricultural product. The CACP while recommending MSPs takes into account factors such as cost of production, change in prices of inputs, demand and supply, market price trends and cost of living among other factors. MSP is determined by the principle of full cost of production that includes the rental value of land, an imputed value of family labor and returns to farmers.

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In fixing the support prices, CACP relies on the cost concept which covers all items of expenses of cultivation including in that the imputed value of inputs owned by farmers such as rental value of owned land and interest on fixed capital. Some of the important cost concepts used by CACP are the C2 and C3 costs.

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C2 cost includes all actual expenses in cash and kind incurred in production by actual owner plus rent paid for leased land plus imputed value of family labour plus interest on value of owned capital assets (excluding land) plus rental value of owned land (net of land revenue). Now, C3 cost is derived as: Cost C2 + 10 percent of cost C2 to account for managerial remuneration to the farmer.

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Costs of production are calculated both on per quintal and per hectare basis. Since cost variations are large over States, CACP recommends that MSP should be considered on the basis of C2 cost.

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Role of FCI

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On behalf of the Central Government, Food Corporation of India (FCI) along with State Governments and their agencies responsible for procurement of agri product on MSP fixed by CACP. But FCI procure the commodities from such states where production of any specific product is surplus. The main areas for procurement of wheat and rice are the surplus states like Punjab, Haryana, and some parts of Uttar Pradesh for both crops and Andhra Pradesh for rice. This has led two kinds of problems. One, growing buffer stock with FCI and our go-down are overflowing stocks of food grains, but, at the same time some parts of the country reported starvation. Second rest part of country producing these commodities doesn’t access the advantage of MSP.

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Farmers of those states do not fully get the benefit of the support price. This has created serious imbalances in demand and supply of principal crops in the country.

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Similarly, the country has been facing large shortages of pulses and edible oils .

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Latest Development

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The Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh, increased the minimum support price (per quintal): Arhar-Rs. 3,000, Moong-Rs. 3,170, Urad- Rs. 2,900, Paddy (common variety) Rs.1,000, and for grade A at Rs.1,030, Groundnut- Rs.2,300, Sunflower-Rs. 2,350, Niger seed Rs. 2,450,Soyabean (black)- Rs.1,400, Soyabean (yellow)- Rs.1440 and sesame- Rs.2900, Jowar (hybrid), bajra andmaize, the minimum support price has been raised by Rs. 40 and fixed at Rs. 880. MSPs of Jowar (Hybrid), Bajra and Maize each have been raised by Rs. 40 per quintal and fixed at Rs.880 per quintal.

Conclusion

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The policy has a favorable impact on farm income and has led to an economic growth. The implementation of Minimum Support Prices (MSP) has played an important role in meeting the ultimate goal of improving the agricultural production and the welfare of the agricultural community. Presently, 25 major crops are covered under the minimum support price program. Thus now MSP is oriented to crop diversification which had not encouraged earlier. Our policy makers are trying to effective implementation of MSP in all over the country.

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OUR Websites:  http://www.smcindiaonline.com,http://www.smccapitals.com,
http://www.smctradeonline.com,http://www.smcwealth.com

Equity Market News 7th – 11th June

Economy

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·Food inflation rose to 16.55% for the week ended May 22 on account of high prices of pulses, fruits and vegetables. Inflation increased by 0.32 percentage point from 16.23% in the previous week.

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Information Technology

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·Take Solutions entered into a strategic partnership with Reliance Life Sciences to supply its unique PharmaReady eCTD, SPL and PPM modules.

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Pharmaceutical

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·Aurobindo Pharma has received a final approval from the US health regulator for sale of Ceftazidime, used to treat respiratory infections, in the American market. The company has bagged the final approval from US Food and Drug Administration for two variants of the drug.

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·Ranbaxy Laboratories’ UK-based subsidiary is recalling a single lot of its drug Gabapentin, used in the treatment of nerve pain, from the UK market for updating mandatory safety information on them.

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·Lupin has received the US Food and Drug Administration’s approval for marketing and distributing Lamotrigine tablets, used for treating bipolar disorders, in American markets. The company has received approval for Lamotrigine tablets in 25 mg, 100 mg, 150 mg and 200 mg strengths.

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Paints

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·Asian Paints has signed a MoU with the Maharashtra government to set up a Rs 735 crore mega project for manufacturing paints and intermediates.

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Realty/ Construction

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·Ahluwalia Contracts India is looking for acquisition or tie-up with a specialised construction firm to help it become an integrated urban infrastructure company. The acquisition will enable the construction company to execute value-added construction projects, like developing multi-level parking and building concrete roads.

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·Jaiprakash Associates will invest around Rs 10,000 crore in the next three years to increase its annual production capacity to 50 million tonnes from a little over 20 million tonnes at present.

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·Lanco Infratech has received an order worth Rs 91.66 crore from the Airports Authority of India for construction of a terminal in Orissa. The scope of work includes construction of a new terminal building at Biju Patnaik Airport, Bhubaneswar.

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Power

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·NTPC Ltd, India’s top power producer, is set to buy controlling stake in a coal field in Australia in a deal valued at $1 billion to $1.5 billion.

·GVK Power & Infrastructure’s subsidiary has bagged a Rs 850 crore contract for building a highway in Rajasthan. GVK Developmental Projects Pvt Ltd, a wholly owned subsidiary of the company, has won the bid for four-laning a portion of the national highway.

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Capital Goods

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·State-run power equipments giant BHEL, engineering major Larsen & Toubro (L&T), and Russian firm Power Machines, among others have evinced interest in supplying to Jindal Power’s two thermal plants in Jharkhand. Jindal Power, a subsidiary of Jindal Steel and Power, is executing two supercritical power projects of 1,320mw at Dumka and 660mw at Godda in Jharkhand by 2014. Supercritical power projects are environment-friendly and energy-efficient.

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·Bharat Earth Movers (BEML) has signed a MoU with the Karnataka government at the Global Investors Meet here for establishing another manufacturing complex in the city.

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Textile

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·S Kumars Nationwide Limited (SKNL) has launched its new apparel brand ‘World Player’ in Kerala. World Player’s product range comprises of formal, casual and occasion wear designed to give the customer a more upmarket trendy look.

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Refineries

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·Indian Oil Corp bought 6 million barrels of West African and 1 million barrels of Libyan crude oil via tender for July and August including its first purchase of Nigerian grade Okono.

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Capital Goods

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·Bharat Forge had formed a JV with KPIT Cummins Infosystems to produce a hybrid engine technology, which will hit the market in six months.

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Milk, Fruits and Pulses Raised Food Inflation to 17.70%

Higher prices of milk, fruits and pulses raised food inflation to 17.70% for the week ended March 27.

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This was due to the expectations that RBI may further tighten rates in its annual monetary policy on April 20.

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Meanwhile, food inflation in the previous week stood at 16.35%.

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The overall inflation for March is likely to cross the double digit mark.

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This is with prices of vital items increasing and fears of food inflation spreading to manufactured goods.

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The overall inflation, which includes variation in prices of food and non-food items, was 9.89 per cent in February.

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On an annual basis, pulses became dearer by 32.60 per cent, milk by 21.12 per cent, fruits 14.95 and wheat by 13.34 per cent.

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Moreover, on a weekly basis, the index for food articles rose by 0.9 per cent as fish marine, milk, fruits, masur and vegetables became costlier.

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In order to rein in inflation, the PM is holding a meeting of the core committee of Chief Ministers with representations from 10 states and senior Cabinet ministers.

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The core group of chief ministers comprises Andhra Pradesh, Assam, Bihar, West Bengal, Punjab, Gujarat, Haryana, Tamil Nadu, Madhya Pradesh and Chhattisgarh.

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Besides CMs, the other members of the committee are Finance Minister Pranab Mukherjee, Food and Agriculture Minister Sharad Pawar and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

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General inflation has already surpassed RBI”s March end projection of 8.5 per cent.

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On the other hand, RBI governor D Subbarao had also said that the apex bank will carry on its exit from monetary stimulus policy to check high inflation and ensure sustainable growth.

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Earlier, according to the government data, released yesterday states the India”s Consumer Price Index (CPI) increased by 14.86 % in the month of February 2010 as against a year ago, which is lower than January”s annual growth of 16.22 %.

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During the month of February 2010, the CPI for Industrial Workers reduced by 2 points to 170.

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Also, India”s annual wholesale inflation rose to 9.89 % in February 2010 as compared to an increase of 8.56 % in January 2010 and 3.50 % against a year ago.

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The wholesale price inflation is more closely watched in India because it covers a higher number of products.

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The Wholesale Price Index (WPI) based inflation rate is rising quite sharply ever since it came out of the negative territory in September 2009.

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Stay Tuned for More Updates :)

COMMODITY NEWS DIGEST

  • Farmers raising the Rabi crop under Krishna Delta this year will fall due to short of water by 16 tmcft (thousand million cubic feet).

  • Government has decided to temporarily wind up its sale of wheat for bulk consumers by March-end in states of Punjab, Haryana and Uttar Pradesh.

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  • Monsanto’s Bt cotton fails to control pests in 4 Gujarat districts.

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  • The validity period for sale and delivery/dispatch of nonlevy sugar has been extended on a weekly basis to the weeks ending March15, 22, 31 and April 7 respectively.

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  • The Centre could extend the ban on pulses exports until March 31, 2011 besides allowing duty-free imports for another year.

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  • The data received from States reveal that about 278.17 lakh hectares wheat has been sown as compared to last year’s coverage of 275.89 lakh hectares.

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  • Rice procurement by state-run agencies has dropped by just 3.25% to 23.8 million tonnes till now in the 2009-10 crop marketing season.

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  • British retail sales recovered last month from January’s snow-related slide.

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  • Confidence among U.S. consumers unexpectedly declined for a second month in March, 2010.

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Stay Tuned for More updates

BUDGET OUTCOMES COMMODITIES :)

·Finance minster reaffirms commitment to introduce GST along with DTC in April, 2011. 🙂

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·A Nutrient Based Subsidy policy for the fertiliser sector has since been approved by the Government and will become effective from April 1, 2010.

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·To extend the green revolution to the eastern region of the country & propose to provide Rs.400 crore for this initiative.

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·Propose to organize 60,000 “pulses and oil seed villages” in rain-fed areas during 2010-11 and provide an integrated intervention for water harvesting, watershed management and soil health, to enhance the productivity of the dry land farming areas.

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·Propose an allocation of Rs.200 crore for launching this climate resilient agriculture initiative.

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·FCI has been hiring godowns from private parties for a guaranteed period of 5 years. This period is now being extended to 7 years.

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·Targets set for agriculture credit flow has been raised to Rs.3,75,000 crore from Rs.3,25,000 crore in the current year.

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·Propose to extend by six months the period for repayment of the loan amount by farmers from December 31, 2009 to June 30, 2010.

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·Provided an additional one per cent interest subvention as an incentive to those farmers who repay their short term crop loans as per schedule.

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·External Commercial Borrowings will henceforth be available for cold storage or cold room facility.

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·Customs duty on silver raised to 1,500 rupees from 1,000 rupees per kg.

Stay Tuned for More updates :)

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

Food Inflation Rose for the Second Week on the Trot

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

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Food Inflation Rises for the Second Week

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Food inflation rises for the second week

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Annual food inflation rose for the second week on the trot, affirming RBI’s fears of a spill over into other commodities and services and mounting pressure on the government to take more measures to arrest prices.

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Annual inflation in food articles rose to 17.56 per cent for the week ended January 23 from 17.4 per cent in the previous week, partly due to a poor harvest after the worst monsoon in nearly three decades, according to data released by the commerce ministry on Thursday.

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While prices of wheat, pulses and vegetables have increased, cereals and rice have become cheaper.

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Fuel price inflation, in tandem with global oil prices, increased to 5.88 per cent from 5.7 per cent in the previous week, spurred by a spike in light diesel oil and furnace oil prices.

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The wider inflation, as measured by the wholesale price index (WPI), has already risen to 7.31 per cent for December, forcing RBI to raise its forecast to 8.5 per cent for the fiscal year-end.

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🙂

In Other major Commodities Update, there is a news of Centre approving the largest quantity of wheat under its open market sale scheme (OMSS) for bulk buyers to consumers in the North zone and India’s corn exports could drop by 60 %in the year.

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Nod for salve of 4.4 Lt wheat in North:

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The Centre has approved the largest quantity of wheat amounting to 4.43 lakh tonne under its open market sale scheme (OMSS) for bulk buyers to consumers in the North zone.

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Sources said, for bulk consumers in South zone around 2,01,000 tonne of wheat has been approved by the government for sale from Food Corporation of India (FCI) godowns till now.

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While for East zone, largely comprising of states like West Bengal, Orrisa and Bihar, around 63,900 tonne of wheat has been approved.

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Almost 1,07,000 tonne of wheat has been approved for sale in West zone of the country and 9,500 tonne has been approved for North-Eastern states.

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Of the 8.4 lakh tonne of wheat, approved in total, almost 77% amounting to around 6.36 lakh tonne has been lifted by bulk consumers till Wednesday.

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🙂

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Corn exports likely to decline 60% this year:

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India’s corn exports could drop by 60 % in the year to September due to a poor domestic crop, quality issues, lower global prices and good crop prospects overseas, traders and industry officials said on Thursday.

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Likely exports are between 1.0-1.3 million tonne due to late harvests because of the drought and rising domestic demand, Amit Sachdev, India representative of the US Grains Council said.

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🙂

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