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Epic Research Daily Agri Commodity Report Of 15 JANUARY 2017



Commodity News

Indian Cotton traders have cancelled contracts to export some 400,00 bales of the fibre after a rally in domestic prices and the rising rupee made overseas sales unattractive, the Cotton Association of India (CAI) said. The switch, triggering penalty payments by traders, has left cotton buyers in leading markets like Bangladesh, Vietnam and China seeking to make up shortfalls by tapping suppliers in the United States, Australia and Brazil, the association said. The cancellations and higher local prices could cut India's exports to 5 million bales, each of 170 kg, in the 2017/18 marketing year started on Oct. 1 - nearly a quarter below an initial estimate, CAI said.

India’s vegetable oil imports in December fell 10% from a year ago to 1.1 million tonnes as refiners slashed overseas Soyoil purchases after supplies rose from the local crop, trade body Solvent Extractors’ Association of India (SEA) said. The country’s imports of Soyoil stood at 79,250 tonnes for the month, well down on the 232,132 tonnes bought last year, SEA said in a statement. Soybean crushing has picked up after the duty hike, the association said. India, the world’s biggest edible oil buyer, in November doubled the import tax on Crude Palm Oil to 30 percent, while the duty on refined Palm Oil was raised to 40 percent from 25 percent.

The country's Onion production is estimated to decline by 4.5 per cent to 21.4 million tonnes in the 2017-18 crop year (July-June) due to lower acreage as against 22.4 million tonnes last year, but the total production would be sufficient to meet the domestic requirement. Retail Onion price have risen to Rs.50-60/kg in some parts of the country but the government consider it is a temporary phase and the rates will cool down by the month- end with improved arrival of the kharif crop. Onion is being sold at over Rs.50/kg in the national capital, Mumbai and Kolkata, respectively.

Economic News

The commerce ministry is working on a comprehensive policy covering issues such as logistics to promote export of agri commodities like tea, coffee, fruits and vegetables, a senior official said. India is one of biggest producers and exporters of agri commodities, and still holds huge potential to increase shipments. "So, the possibility of value addition and moving up in the global value chain is immense. All important elements such as logistics, certification and traceability of items would be part of the new policy," the official said. It is important to have proper infrastructure to promote exports. This move would help serve the government's objective to double farmers' income and increasing exports. The ministry has started the process of identifying factors such as where maximum import demand is, areas that can be looked at, India's contribution to, and steps required to promote exports.

India's agriculture sector will expand more than 4% in 2017-18, farm minister Radha Mohan Singh said, trying to allay concerns raised by the statistical office's projection of sluggish growth in one of the most important segments of the economy. Increased horticulture and fisheries production, a robust kharif harvest and near-normal planting in the ongoing rabi season will hold the growth at a healthy rate, he said. Singh said he was confident that the country would see two back-to-back years of robust growth in the agriculture sector. Due to delayed onset of monsoon, the kharif or summer crop planting was delayed, the minister said, suggesting that it probably had influenced the statistical office's projection. Kharif acreage that was lower in August had turned positive by December, he said. "Further, we have yet to take in account the crop planting which happens between March-April and June-July, called 'jayad', where farmers go for 60-day crop planting," the minister said. Agriculture growth had accelerated to 4.9% in 2016-17 from 1.2% in drought-hit 2015-16. In the 2014-15, it was almost flat.



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News Release: Epic Research Daily Agri Commodity Report Of 15 JANUARY 2017
Submitted on: January 15, 2018 04:33:47 AM
Submitted by: EpicResearch
On behalf of: www.epicresearch.co/
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