Posts Tagged ‘Punjab’

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 :)

Rice Procurement Tops 16 Million Tonne

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

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Rice Procurement Tops 16 Million Tonne

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Rice Procurement Tops 16 Million Tonne :

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Rice procurement by Food Corporation of India (FCI) and state agencies for 2009-10 crop marketing year has surpassed 16 million tonne and was estimated at 16.3 million tonne as on Tuesday.

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This year, as usual Punjab and Haryana have contributed bulk of the total procurement with around 9.25 million tonne and 1.80 million tonne to the central pool.

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The procurement in other key rice growing states such as Chhattisgarh (1.43 million tonne), Andhra Pradesh (1.10 million tonne) and Uttar Pradesh (1.53 million tonne) have also picked up pace in the last few weeks.

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🙂

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In Other major Commodities Updates, we have news about coffee exports globally dipping 7.8% and the retail prices of Jaggery getting costlier.

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Global coffee exports dip 7.8% in Oct-Nov:

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Coffee exports globally have fallen 7.8 per cent to 13.4 million bags (1 bag= 60 kg) in the first two months of the 2009-10 crop year.

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In India, exports have risen over 20 per cent to 516,000 bags in the same period, the International Coffee Organisation (ICO) has said.

The coffee year runs from October to September.

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Global coffee export figures remained bleak due to a sharp fall in shipments from Brazil, the world’s largest coffee producer.

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During the October-November period, overseas sale of coffee bean from Brazil dipped 11.11 per cent to 5.34 million bags from 6.01 million bags in the corresponding period last year.

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🙂

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Jaggery to get costlier on festive demand:

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Retail prices of jaggery, one of the key ingredients used by south Indians in their Pongal/Sankranthi celebrations is set to become costlier and are likely to touch Rs 40-44 per kg as against Rs 37-38 per kg at present.

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Jaggery prices in the key southern states of Andhra Pradesh and Karnataka have already gone up between 4% and 12% during the last one month.

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🙂

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Wheat Sowing Picks Up Pace Across India

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

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Wheat sowing picks up pace across India

Wheat sowing picks up pace across India:


As per the latest government estimate, wheat has been sown in around 13.70 million hectares of land till last week, almost 5% more than the same period last year.

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Sowing in India ‘s two main wheat growing province of Punjab and Haryana,which contribute almost 80% of the total country’s production is nearing end.

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Officials believe that  barring delayed harvest kharif crops, cooler temperature in most parts of northern, central and western India added with the recent unseasonal rains should provide an ideal climatic condition for good wheat sowing and early growth.

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The government expects an additional two million tonne of wheat production during the rabi season to offset some of the losses incurred during the kharif harvest.

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However, as per studies done by Indian Council of Agriculture Research, wheat yield can come down by almost 50 kilograms per hectare per day if it is sown very late (beyond December) in northern states.

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The output drop in southern wheat growing states and in Maharashtra and Karnataka is estimated to be around 36 kilograms per hectare per day if the crop is sown very late.

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🙂

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In Other major Commodities Updates we can read about India’s FM statement on Inflation root cause and launching of in 12 commodities by MCX.


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Inflation due to food items shortage: FM


The current trend in inflation in India is a result of a shortage of food items and not due to a demand-push factor, Union finance minister Pranab Mukherjee told Parliament on Tuesday.

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The food articles index rose an annual 15.6% as at 14 November, up from the previous week’s 14.6% rise.

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The weakest monsoon since 1972 and then floods in parts of the country have hurt farm output and pushed up food prices.

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The finance minister said the government is keeping a close watch on futures trading in commodities.

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The Centre is planning massive investment to boost farm output, the minister said.

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MCX launches EFP in 12 commodities:


The Multi-Commodity Exchange of India (MCX) has introduced the exchange of futures for physicals (EFP) transactions in 12 commodities from Tuesday, the bourse said in a release.

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This process will help traders who have already entered into an agreement for physical trade to take position on futures platform for transparent pricing mechanism.

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In EPF, if the quality of the commodity traded does not match MCX specifications, both parties can then decide on a premium or discount to the settlement price on the futures platform on the delivery date.

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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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Northern Region – Largest Contributor to the GDP :)

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North India - Largest Contributor to the GDP

CII report states that although the economic growth in the region has underperformed the national average, the Northern Region continued to be the largest contributor to the GDP at 27.5% in 2007-08.

However, it said that it clocked a CAGR of 6.2% against 6.5% nationally while the under performance had been witnessed across primary and tertiary sectors.

Moreover, the northern region has not been able to capitalize on its traditional stronghold –agriculture while it has also not been able to capitalize on the opportunities in the service sector like the other regions.

One of the key reasons of under performance in the primary sector has been slow growth rates witnessed by two of the largest agrarian states in the region – Uttar Pradesh and Punjab, which contribute 57.5 per cent to the region’s primary sector.

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Performance of the northern region has been reasonably good in the secondary sector, driven to a large extent by growth in the construction sector.

Construction, on the other hand, is also the fastest growing sub sector for the region, CAGR of 12.6% over 1999-00 to 2007-08

Other fastest growing sub sectors for the region are transport, storage and communication; Banking & insurance, real estate, ownership of dwellings & business services.

Discussing the state economies, CII offical said that Uttar Pradesh, Rajasthan and Delhi are the three largest economies in the region.

Chandigarh, Uttarakhand and Haryana are the three fastest growing economies in the region.

All northern region state economies have witnessed declining contribution from the primary sector.

The greatest increase in percentage contribution of the secondary sector has been in Uttarakhand, 15 per cent points.

Similarly the contribution of the tertiary sector has witnessed greatest increase in Haryana, 10 per cent points, he said.

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WHEAT MAY MOVE IN RANGE WITH UP BIAS

Domestic wheat prices have escalated by around 10 per cent

Domestic wheat prices have escalated by around 10 per cent

Domestic wheat prices have escalated by around 10 per cent amid concerns of adverse monsoon and flood in Karnataka and Andhra Pradesh, which has raised concern over kharif food grain production particularly rice and maize.

Although there is still some upside left as far as wheat prices are concerned.

The prices will face strong resistance at higher level as supply situation in India and in rest of the world is in healthy shape.

Ample availability of stock at domestic level

At domestic level, wheat inventories have increased after two back to back record crops in the country.

Due to better carry over stock and record purchase government stocks reached to second highest level in the history at 32.29 million tonnes almost double than buffer stock requirement of 17 million tonne.

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According to the Agriculture ministry’s fourth advance estimates, India produced a record crop of 80.58 million tonnes in 2008-09, while production was at 78.57 million tonnes in 2007- 08.

With bumper production and steep hike in minimum support price, government made record purchase of 25.3 million tonnes this year, 13 percent more as compared to last year.

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Prospects of next year crop

Despite having comfortable supply currently, weak monsoon, flood in Andhra Pradesh and Karnataka and consequent Shortfall in kharif paddy output prospects has started fueling prices in the market.

A smaller paddy and maize crop will lift demand for their substitutes, primarily wheat.

As per crop weather watch report, acreage of kharif paddy this year remained at 324.28 million hectare till October 09, 2009 which is 16.2 percent or 6.26 million hectare lower than same period last year.

However kharif maize acreage remained higher this year but recent flood in Andhra Pradesh and Karnataka has aggravated the concerns of lower output.

As per Agriculture department report, kharif maize acreage was at 71.08 lakh hectares, 0.8 percent or 0.5 lakh hectares higher than last year.

Besides, flood in Karnataka and Andhra Pradesh and weak monsoon also raised concern over prospect of next wheat Crop.

Due to weak monsoon in northern part of India mainly in Punjab, Haryana and Uttar Pradesh, soil moisture condition is not sufficiently good for next wheat sowing.

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Water storage in this region has also declined. As per Central Water Commission’s latest data in 81 important water reservoirs monitored by CWC in different parts of the country, total live storage has increased from 90.48 BCM on 01.102009 to 91.75 BCM on 08.10.2009.

But still is far from a satisfactory level.

Stay Tuned for More on this topic.

We would see demand and supply scenario in coming months, price trend and on Export Ban.

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POTATOES………GOOD SOURCE OF VITAMIN M (MONEY) Part Two

Hello Friends, just an extension of our previous blog on Commodity Check where we touched upon the aspects like production and price movement of Potato.

Potato Position in Indian Snacks Market

Potato Position in Indian Snacks Market

Now we would read into the consumption pattern and position of Potato in Indian Snacks Market and many more related aspects in this regard.

Indian Snacks Market

Potato consumption is expanding strongly in developing countries, where potato is an increasingly important source of food, employment and income.

The Indian snacks market is worth around US$ 3 billion, with the organized segment taking half the market share, and has an annual growth rate of 15-20 per cent.

The unorganized snacks market is worth US$ 1.56 billion, with a growth rate of 7-8 per cent per year.

There exists consumer as well as bulk markets for potato wafers and chips even in far flung rural areas owing primarily to the following reasons:-

·Rapid urbanization and improving standards of living

·Easy availability

·Convenient packaging

·Affordable prices

·Nutritious values

Income growth in India has led to an increase in consumption of Western-type goods, such as French fries, which continue to be this country’s most important potato export product.

Consumers are willing to pay a premium for both value-added private and branded products, creating immense opportunities for manufacturers and retailers.

Though there exists some international as well as national brands but majority of the market base is under the control of local manufacturers.

PepsiCo India has partnered with more than 10,000 farmers working in over 10,000 acres across Punjab, U.P., Karnataka, Jharkand, West Bengal, Kashmir and Maharashtra for the supply of potatoes.

Potato sourced under contract farming accounts for roughly 55% to 58% of the US giant’s annual snack making requirement.

The company is trying to procure potato through contract farming from Bihar and Jharkhand and process upto 30,000 ton of potato at its Sankrail factory in West Bengal by 2010.

Strengthening Stimulus

Stimulus spending and festivals strengthening demand may add to on-going demand, the prices can be driven by supply-side bottlenecks.

India’s industrial output grew at its fastest pace in 22 months in August, 2009.

Inflation is rising; production is rising fast, so logically the data does suggest that it makes sense to move.

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POTATOES … GOOD SOURCE OF VITAMIN M (MONEY) – Part 1

POTATOES ………. GOOD SOURCE OF VITAMIN M (MONEY)

POTATOES ………. GOOD SOURCE OF VITAMIN M (MONEY)

Commodity Check :

Potato is probably the most popular food item in the Indian diet. Potato is a very rich source of starch. It also contains phosphorus, calcium, iron and some vitamins.

Indian Scenario

India is the third largest potato-producing country in the world, after China and Russia,with a total acreage of 14 lakh hectares, producing 250 lakh tonnes of the crop.

Potato is cultivated both as a Kharif & Rabi crop, under assured irrigation during short winter days from October to March.

Potato cultivation is more concentrated in the Gangetic plain comprising Uttar Pradesh, Bihar and West Bengal.

Price Movement

The price of potatoes from UP, Haryana and Punjab in the four key wholesale mandis of Delhi, Azadpur, Okhla, Keshavpuram and Ghazipur, ranges from Rs 10 per kg to Rs 16per kg, up from Rs 6-15 per kg a couple of months ago.

The prices, however, saw an up-trend touching highest in the last five years, at Rs.1,400 per quintal (100 kg) owing to poor production in the neighboring states of Bihar and West Bengal.

The current potato prices in the market are reigning between Rs.1,400 and Rs.1,700 per quintal.

The horticulture department expects the acreage to rise to 545,000 hectares this season in the backdrop of bullish prices.

The farmers would prefer potato since this would fill in their paddy losses without affecting their rabi wheat crop in winters.

The trend could again result in windfall production of potato next year, causing severe storage problems, as was the scenario last year.

Last year, the prices nosedived so much that the cold storage had no space and the crop was forced to lie on roads.

Prices…. Fireworks

Food prices are likely to go up in the coming weeks as floods in the southern states of Karnataka and Andhra Pradesh have destroyed crops.

Due to crop failure in states like Maharashtra, West Bengal and Karnataka, the potato crop output this year has fallen by about 20%.

The common man has been hit hard by the rising prices of potatoes and vegetables which have soared by 81% and 43% respectively in the past one year.

The prices are unlikely to come down before December as new crop is likely to arrive only in late November, which will then ease the supply pressure.

Rising prices of other vegetables are also providing support to the potato market. The potatoes available during April-October period are largely supplied by cold storages.

About 16-17 MMt of potatoes are estimated to have been stored from 2008-09 crop to meet the demand in lean season.

According to the Nasik-based National Horticultural Research and Development Foundation (NHRDF), potato production in 2009-10 is estimated to be about 31 million metric tonnes (MMt), same as last year.

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