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Epic Research Daily Agri Commodity Report Of 29 JANUARY 2017

Commodity News

Higher prices of Cotton since November seems to have taken a substantial toll on country's Cotton yarn exports, raising concerns that India may see at least a 10% decline in total exports for 2017-18 (Apr-Mar), trade sources said. In 2016-17, India exported 1.2 million tonnes of Cotton yarn, down 9% from the previous year. In Apr-Nov, India exported 675,797 tonnes, down 3% on year, an official at textile commissioner's office said, citing data from Directorate General of Commercial Intelligence and Statistics. India rating and research agency CRISIL had earlier noted that margins of spinning companies has been hurt by decline in Cotton yarn exports.

Farming area has declined by more than 30-40 % in the major growing areas with farmer moving to cotton and other crops, due to which there may be low supply of Chilli and the prices are likely to touch record high by the year-end. The supply is very low when compared to last year’s 18 lakh tonne. The current market prices are in the range of 85-115 per kg. Good quality chilli is trading above 150 per kg and average good chilli can only be procured above Rs 100 per kg. India is the world leader in chilli production followed by China and Pakistan. Area under chilli is estimated to be lower by 25-30% and the yield from the current crop is also seen lower by another 25-30%.

The procurement operations for Groundnut crop by the National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) under the Price Support Scheme (PSS) were suspended in Gujarat after the agencies made a record purchases of 8 lakh tonnes of the oilseed at the support price of Rs 4,500 per quintal. However, considering a bumper crop of about 32 lakh tonnes in the last kharif season, the Gujarat government has asked Centre to approve additional procurement of 4 lakh tonnes, to which the Union Agriculture Ministry has raised queries about the State’s preparedness for storage of the massive volumes of the oilseed in a scientific manner.

Economic News

The Marine Products Export Development Authority (MPEDA) will sign an MoU with Coop, Switzerland- a supermarket chain with over 2500 stores- on developing organic seafood supply systems in India to be marketed through their stores during the India international seafood show (IISS), slated to be held in Goa from January 27. The country's seafood exports have been growing significantly over the past five years with India exporting seafood worth $5.78 billion in 2016-17. Provisional export figures during April-November 2017 have shown an increase of 18.72% and 15.16% respectively in quantity and value (in US dollars) of seafood exports from a year ago. Given the trend, it is expected that the export earnings will cross $6 billion during the current fiscal. The increase in the shrimp production under aquaculture, clubbed with enhanced processing capacity and favourable market conditions are assisting the exports.India is largest exporter of shrimps to the US and a leading supplier of shrimps and cephalopods to the EU market.

Consumers would not have to shell out more for their milk packets this year.
Excess milk production and huge carrying forward inventory of milk powder from the previous season are expected to keep milk and milk product prices in check this year. Experts believe that farmers might get less returns for their produce if dairies are unable to export milk powder or divert it to government schemes like the mid-day meal scheme. It is seeking incentives to export skimmed milk powder (SMP) in the current scenario. "There is huge inflow of liquid milk this year. Milk prices will not increase this year, which will be a relief for consumers," said RS Sodhi, MD, Amul. Over the past few years,prices have been increasing by Rs 2 a litre annually, he said. To ensure that milk prices being paid to farmers don't fall further, Sodhi said the cooperative has requested the government to give an export subsidy of 10% on SMP. "The country has a stock of over 1.25 lakh tonne SMP.

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News Release: Epic Research Daily Agri Commodity Report Of 29 JANUARY 2017
Submitted on: January 29, 2018 04:39:53 AM
Submitted by: EpicResearch
On behalf of: