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Epic Research Daily Agri Commodity Report Of 23 JANUARY 2017

Commodity News

The second quarter of fiscal 2018 was the least profitable in five years for spinners, or Cotton yarn mills. Margins hit a 20-quarter low in Q2, but lower Cotton prices and demand restoration can ease pressure, rating agency CRISIL said in its latest research report. Margins touched 10.3%, compared with a peak of 18.8% in the corresponding quarter of fiscal 2014. That’s because the spread between prices of Cotton (with a one-quarter lag) and cotton yarn was at a low of Rs 89/kg compared with Rs 130/kg at peak in the fourth quarter of fiscal 2013, the agency said.

The government has reduced the minimum export price (MEP) of Onion by $150 per tonne with prices of the kitchen staple moderating. The MEP for Onion, the floor price below which exports are not allowed, has been reduced to $700 per tonne from $850 fixed in November, as per the commerce ministry. Onion MEP was scrapped in December 2015 but brought back in November 2017 with an aim to check rising prices which were ruling at Rs 50-65 per kg in most cities. The MEP of $850 was applicable till January 20.

Indonesia's Crude Palm Oil (CPO) exports in December likely edged lower because of lower demand after an import tax hike started on edible oils in India, Indonesia's biggest CPO importer, while output fell for a second month, according to a recent survey. Exports of CPO from Indonesia, the world's biggest palm oil producer, fell slightly to 2.51 million tonnes in December from 2.52 million in November,the survey showed. Shipments of the widely used vegetable oil are likely to decline after the import tax hike in India along with competition from Malaysia after it cut its Palm Oil export levy. Malaysia cut its CPO export tax in December and said earlier this month it would suspend the export tax for three months starting from Jan 8.

Economic News

Bayer has launched a first-of-its-kind hybrid rice seed, Arize AZ 8433 DT with strong inbuilt tolerance to Brown Plant Hopper (BPH) and Bacterial Leaf Blight (BLB). BPH is the most destructive pest in rice growing areas of India and caused huge losses to farmers in the 2017 kharif season. "Though there are many chemical solutions available to control BPH, these have not been able to control the insect effectively in cases of medium to heavy infestation.The usual practice is to spray when the insect build-up has already happened. As an alternative approach, Bayer has developed hybrid seeds, where pest tolerance has been achieved in the seed through innovative technologies based on marker-assisted breeding. The result is Arize AZ 8433 DT," a company release stated. "Rice is a staple food crop for majority of India and a key focus crop for Bayer's Crop Science business in India. Bayer has been working closely with rice farmers to improve rice yields and quality through its innovative hybrid seeds, crop protection products and integrated crop management solutions," says Peter Mueller, Head of the Crop Science division at Bayer South Asia.

The farm credit target is likely to be raised by a whopping Rs 1 lakh crore to a record Rs 11 lakh crore in the Budget 2018-19 to improve credit flow in the agriculture sector, according to sources. In the current fiscal, the government has kept a credit target of Rs 10 lakh crore. Of which, Rs 6.25 lakh crore has already been disbursed in the first six months till September 2017, the government data showed. "The government's priority is agriculture. There is a possibility that the credit disbursal target for the agriculture sector will further be increased to Rs 11 lakh crore for the next fiscal," sources said. Since credit is a critical input in achieving higher farm output, the institutional credit will help delink farmers from non-institutional sources of credit where they are compelled to borrow at usurious rates of interest, they said. Normally, farm loan attracts an interest rate of 9 per cent.

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News Release: Epic Research Daily Agri Commodity Report Of 23 JANUARY 2017
Submitted on: January 23, 2018 04:27:51 AM
Submitted by: EpicResearch
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