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Epic Research Daily Agri Commodity Report Of 18 JANUARY 2017

Commodity News

Red Chilli is likely to turn costlier by March due to an expected 30% plunge in output in the main producing states of Andhra Pradesh and Telangana, combined with failure of the crop in Madhya Pradesh. After as much as 50% fall following a bumper crop, average prices moved up gradually from Rs 35 per kg during the year as the stock thinned. Average prices are around Rs 75 per kg now and the premium quality fetches Rs 100 per kg. Harvesting of Chilli has just begun and will continue till March. India usually produces 15-16 lakh tonnes of red chillies. Last year saw a bumper crop of over 18 lakh tonnes, which, together with the carryover stock, took the total supply to more than 19 lakh tonnes.

Sugar production in Uttar Pradesh recorded a growth of 24.54% to 4.1 million tonnes until January 12 on the back of higher recovery and increased crushing. Last year, mills produced 3.32 million tonnes Sugar in the corresponding period. “This year the mills not only started early but also crushed more Sugarcane, and recovery is also higher. As a result production of the sweetener is rising” said a senior official at Uttar Pradesh Sugar Mills Association (UPSMA).

The Centre's food subsidy bill is likely to go up by 10% to around Rs 1.60 lakh crore in the 2018-19 budget due to rise in minimum support prices but no change in subsidised rates of foodgrains, sources said. The 2018-19 Union Budget will be presented on February 1. Since November 2016, the government is implementing the National Food Security Act, under which foodgrains are supplied every month at a highly subsidised rates of Rs 1-3 per kg to over 80 crore people in the country. "For the 2017-18 fiscal, the government has earmarked Rs 1,45,338 crore for food subsidy. This is likely to increase by at least 10% in the 2018-19 fiscal," sources said.

Economic News

The Telangana government is working on short-term policies for quick implementation in areas of agriculture and animal husbandry and allied
activities to spur growth and is currently studying models from various states.These policies will identify the interventions required at the pre and post-
harvest levels. J. Devi Prasad, director of Hyderabad-based Centre for Good Governance, said, "We are working on two policies to improve the state of agriculture and allied activities like fisheries etc., and are studying various models from Gujarat and Madhya Pradesh to emulate successful models in
our state". He was speaking on the sidelines of a national workshop on "Doubling farmers' income by 2022" organised by the Centre for Good Governance (CGG) and National Bank For Agriculture And Rural Development (NABARD) in Hyderabad. The CGG will be submitting its report to the Telangana government by January 31, having started work on it three months ago.

Indian sugar processors have undermined their own margins in order to meet government mandates on when to pay cane farmers, which required them to sell supply onto the market at the same time they agreed to pay more for sugar cane. India, the world's second-biggest sugar producer, requires the processors to pay cane farmers within two weeks of harvest. The mills agreed in May to pay the farmers 11 percent more for their cane for the 2017/18 marketing year, which started on Oct. 1. Many mills struggled to raise funds from local banks to make the payments, said a senior official at the Sahyadri co-operative sugar factory based in the western state of Maharashtra. This has caused some mills to have fallen behind on the payments by an estimated 20 billion rupees ($312 million), said a government official who declined to be named. To meet the funding shortfall, mills boosted sugar sales which has caused the refined sugar market SUG-ARMKHP-NCX to drop by 13.1 percent to 3,189.50 rupees ($49.77) per 100 kg.

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News Release: Epic Research Daily Agri Commodity Report Of 18 JANUARY 2017
Submitted on: January 18, 2018 04:51:06 AM
Submitted by: EpicResearch
On behalf of: