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Epic Research Daily Agri Commodity Report Of 16 JANUARY 2017



Commodity News

The U.S Department of Agriculture (USDA) estimates India's 2017/1 Cotton yield to decrease to 519 kilogram per hectare, down slightly from last month and down 4% from last year due to pink bollworm infestation, which has been reported in 50% of the second and third picking inMaharashtra. Gujarat, however, which produces 30% of total production, has reported no incidence of pest infestation. Cotton crop area is expected to reach a near record at 12.3 million hectares, unchanged from last month and up 13% from last year. Planted area increased due to higher domestic prices compared to other crops.

The Black Pepper exporters, mainly concentrated in Kerala, are unhappy with the Union government fixing the minimum import price (MIP) of Rs 500 per kg. The decision would only help to drive away companies engaged in the export of Pepper and force them to set up their business to countries such as Vietnam, offering at much lower price. The Union government decided to impose minimum import price to shore up the domestic price falling for the past few months.

In an effort to make the agri-economy more efficient and bring huge amount of value for the farmers of India, National Commodity and Derivatives Exchange Limited (NCDEX) has launched the country's first agri-commodity options in Guar Seed. NCDEX launched Guar Seed options as it is one of the most liquid contracts on the exchange platform. Around 1.5 million farmers are associated with this commodity. Speaking on the occasion, NCDEX MD and CEO Samir Shah said, "The option trading is a powerful tool to hedge price risks...we are confident that this will boost the development of the agri-commodity market. "Options will protect farmers from downward price movement as well as give them an opportunity to sell their produce at higher prices in case of price increase, he said.

Economic News

Ahead of the Budget, Finance Minister Arun Jaitley today said the agriculture sector is the top priority for the government because the country's economic growth is not "justifiable and equitable" unless the benefits are "clear and evident" in the farm sector. Therefore, the government's priority is to ensure the gains reach the farmers and the growth is visible even in the farm sector, he said at an event here. As per latest Central Statistics Office (CSO) data, the country's economic growth is expected to slow to a four-year low of 6.5 per cent in the 2017-18 fiscal, the lowest under the Modi-led government, mainly due to poor performance of agriculture and manufacturing sectors. The CSO has pegged farm and allied sector growth to slow to 2.1 per cent in the current fiscal from 4.9 per cent in the preceding year. "India is one of the fastest growing economies in the world and the growth is benefiting people in different sectors.

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. 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.


Trading Recommendations

BUY CORIANDER APR ABOVE 6060 TARGET 6090 6130 6180 SL ABOVE 6010
BUY TURMERIC APR BELOW 7590 TARGET 7620 7660 7710 SL ABOVE 7440
BUY GUARGUM5 FEB ABOVE 9600 TARGET 9630 9670 9720 SL 9550

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News Release: Epic Research Daily Agri Commodity Report Of 16 JANUARY 2017
Submitted on: January 16, 2018 04:31:12 AM
Submitted by: EpicResearch
On behalf of: www.epicresearch.co/
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