Posts Tagged ‘Spices Board’

PRICE INDEX “The Score Card”

The price index is an indicator of the average price movement over time of a fixed basket of goods and services. The objective is to monitor & measure the retail, wholesale or producer prices etc.

.

Base Year for calculation: Presently WPI series compiled are — Assam (base 1993-94), Bihar (1991-92), Haryana (1980-81), Karnataka (1981-82), Punjab (1979-82), U.P.(1970- 71) and West Bengal (1980-81). The National Statistical Commission has recommended that base year should be revised every five year and not later than ten years. Step-wise introduction to compilation of WPI: Like most of the price indices, WPI is based on “Laspeyres formula” for reason of practical convenience. These steps are discussed in detail in the following sections:

.

1) Concept of Wholesale Prices: It is the rate at which relatively large transaction of purchase, usually for further sale, is effected. The price pertaining to bulk transaction of agricultural commodities may be farm harvest prices, or prices at the village mandi /market of the Agricultural Marketing Produce Committee/ procurement prices, support prices.

.

2) Choice of Base Year: The criteria for the selection of base year are (i) a normal year i.e. a year in which there are no abnormalities in the level of production, trade and in the price level and price variations, (ii) a year for which reliable production, price and other required data are available and (iii) a year as recent possible and comparable with other data series at national and state level.

.

3) Selection of Items, Varieties/ Grades, Markets: The importance of an item in the free market will depend on its traded value during the base year. In agriculture commodities the selection of new items in the basket is done on the basis of increased importance in wholesale markets. In the existing WPI series, items, their specifications and markets have been finalized in consultation of with the Directorate of E&S (M/O Agriculture), National Horticulture Board, Spices Board,Tea board, Coffee Board and Rubber Board, Silk Board, Directorate Of Tobacco, Cotton Corporation of India etc.

.

4) Derivation of Weighting Diagram: Weights of Agriculture commodities: These weights are based on the Marketed value (MV) arrived at by multiplying Marketed Surplus Ratio (MSR) to the estimates of Value of Production (VOP) of agricultural commodities.

.

5) Collection of Prices: The collection of base prices is done concurrently while the work on finalization of index basket is on. Therefore, price collection is normally done for larger number of items pending finalization. Once the basket is ready, current prices are collected only as per the final basket from the designated sources. Weekly prices need to be collected for pre-determined day of the week. For the current series prices are quoted on the basis of the prevailing prices of every Friday.

.

6) Treatment of prices collected from open market & administered prices: The issue of using administered prices for index compilation is resolved by taking into account appropriate ratio between the levy and non-levy portions. Where these ratios are not available, the issues can be resolved through taking the appropriate number of price quotations of the administered prices and the open market prices after periodic review.

.

7) Classification structure: The classification is based on NIC renders the WPI data amenable to comparison with the Index of Industrial Production (IIP) and National Income data.

.

8) Methodology of Index Calculation: In the first stage, once the price data are scrutinized, price relative for each price quote is calculated. Price relative is calculated as the ratio of the current price to the base price multiplied by 100 i.e. (P1/Po) X100. In the next stage, commodity/item level index is arrived at as the simple arithmetic average of the price relatives of all the varieties (each quote) included under that commodity. Next, the indices for the sub groups/groups/ major groups are compiled and the aggregationmethod is based on Laspeyres formula.

.

9) Provisional Vs Final: The weekly indices are compiled after a short gap of two weeks only as compared to other indices, which are compiled on monthly basis. The WPI are, therefore released provisionally and final revised indices, incorporating all possible quotations, are released after a gap of two months.

.

10) Data collection mechanism : At present data collection for WPI is solely based on voluntary basis. Price data pertaining to Primary articles and Fuel & petroleum products are mainly collected through administrative Ministries/ Department’s, PSU’s and state government departments. For ‘Manufactured products’, apart from some government sources, data collection is done through Chambers of Commerce, Trade Associations, Business Houses and leading Manufacturing Units.

.

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

.

Share/Bookmark

CHILLI

Description

.


Chilli is the dried ripe fruit. It is widely distributed in all tropical and sub-tropical countries including India.

.

Production in india

.


In India, Chilli is a kharif season crop and an important cash crop. It is grown in all parts of India covering about 7,33,800 hectares. The harvesting season starts in January and arrivals peaking in February-April. Sowing is held mainly during August-October. Several varieties of chillies are cultivated in India. Sanam, Bydagi, Wonder, Hot, Jwala and LC334 are the most popular amongst them.

.

India is the largest producer and consumer of chilli in the world contributing nearly 50 percent of the global output. So any decline in output would have an immediate impact on prices. Climatic conditions are also the major variables which make chillies hotter.

.

In peak season, nearly one billion bags of chillies (a bag contains 35-50 kg) worth Rupees 500 crore arrives in the Guntur market. Other major markets are Khammam and Warangal in Andhra Pradesh and Bellary and Raichur in Karnataka.

.

According to the Spices Board, Consumption of chilli is increasing substantially as the branded powder sales growing at a compound annual growth rate of 11%.

.

Over 30 percent of chillies produced in India are converted into powder.

.

International Scenario

.


In chillies, the major producing countries are India, China, Peru, Bangladesh, Hungary and a few others. Production of major countries is growing at a CAGR of 5.2 percent. World trade in chillies is put at 4 lakh tonnes. The Indian share in global production range from 50-60 percent, China and Peru are growing fast and Hungary shows a de-growth. However, India is the only one source for hot chillies.

Export Scenario

.


India is a major exporter of chillies with major destinations of West Asia, Far East, USA, Sri Lanka and Bangladesh. India also exports chillies oleoresins in good quantities.

.

In the first half of 2009-10, exports to Pakistan were nil as against 22,000 tonnes during the year-ago period. Indian chilli exports fell in the first half of the current financial year as China importing it from the Pakistan market. Chilli exports picked up from October and during January 2010, India exported around 17,500 tonnes valued Rs 120 crore as against 11,500 tonnes valued at Rs 69 crore. In long term, exports are likely to increase as the Chinese production is on the lower side.

.

Current scenario

.


The total stock position of chilli in Guntur mandi of Andhra Pradesh at 48 lakh bags against 25 lakh bags reported last year in the same period. The total production of chilli in the current year is also likely to be around 1.68 lakh bags against 1.25 lakh bags reported last year due to steady prices of chilli during the sowing period.

.

Currently chilli prices are trading in pressure as arrivals increase. But good demand and cold chain facilities developed by affluent farmers are likely to help stabilise the chilli prices. Heavy arrivals also promote more exports on lower prices. The forward month contract is trading in contango (i.e prices of next month contract is higher than the most active traded current month contract.

.

The active June contract chilli futures made a low of Rs.4520 per quintal from a high of Rs.5500 per quintal and declining by 21.68 %. Chilli future (June_NCDEX) has seen a drastic fall in regards to volume, from 2000 lots to 400 lots in these days, while the open interest has seen a continuous rise.

.

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.

🙂

'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”.


🙂

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.

🙂

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.

🙂

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.

🙂

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