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Epic Research Daily Agri Commodity Report Of 02 FEBRUARY 2018

Commodity News

The food ministry has pushed for 100% import duty on Sugar to avoid cheaper imports of the sweetener from Pakistan. Currently, import duty on Sugar is at 50%. Pakistan has hiked the amount of Sugar eligible for export subsidies to two million tonnes from five lakh tonnes in view of excess domestic supplies. Sources said the proposal to hike the duty is before the commerce ministry, which is likely to take a decision soon. There are indications that the government may allow export of raw sugar under Duty Free Import Authorization (DFIA) scheme, which was withdrawn in May 2015. These two measures have become necessary to ensure that the Indian sugar mills are able to pay the sugarcane arrears of farmers.

Maharashtra government is expected to commence Tur (arhar) procurement at Minimum Support Price (MSP) from farmers beginning February 1, this decision will give sigh of relief to the Tur (arhar) farmers in Maharashtra. Decision for procurement of Tur was taken at a meeting with NAFED and the marketing federation in Mumbai. MSP of Tur is Rs 5,450/quintal, including bonus of Rs 200/quintal. The Centre has granted permission to Maharashtra for the purchase of 44.60 lakh quintals. The state government began a registration drive for farmers from January 19 and some 1.17 lakh farmers have registered themselves.

Soybean prices in mandis in Madhya Pradesh have risen by 14-25 percent since January 1 and in mandis in Maharashtra by 30-35 per cent. The price spike comes weeks after the sale window of the Madhya Pradesh government’s much-published Bhavaantar Bhugtan Yojana closed in December. This has sparked speculation that traders who used the scheme to their benefit are now pushing up prices to clear inventories. Market was agog with rumours that government might lower its crop estimate significantly.

Economic News

Cashew sector feels that the advantage of duty reduction on import of raw cashews is neutralised by the reduction in the number of months for re-export to three months from six. The cashew sector had been arguing for lifting the 5% duty on import of raw cashews for processing and export because of the runaway increase in prices. The government has cut duty by 50% in the Union Budget. But on the other hand they have reduced the time for re-export of cashews under advance licence to 3 months from 6 months. "Actually it is self-defeating as majority of exporters rely on advance licence for importing raw cashews at zero duty and exporting kernels. It is practically impossible to export in three months ,'' said G Satheesh Nair, managing partner of India Food Exports. But when they pay 2.5 % and import, there is no restriction on the period for export. "In other words , we have to pay duty at a lower rate for raw cashew import for export as it will be difficult to use advance licence now because of reduction in the period for export,'' Nair said .

The budget allocated Rs 2600 crore for ground water irrigation scheme in 96 deprived irrigation districts. However, water sector activists claim this scheme will blindly incentivise use of groundwater in unsustainable matter.The Finance Minister announced in his speech: Ground water irrigation scheme under Prime Minister Krishi Sinchai Yojna- Har Khet ko Pani will be taken up in 96 deprived irrigation districts where less than 30% of the land holdings gets assured irrigation presently. I have allocated Rs 2600 crore for this purpose.“Himanshu Thakkar, co-ordinator, South Asia Network on Dams, River and People (SANDRP) said, "The scheme will incentivise use of groundwater without emphasising augmentation and regulation of groundwater along with its use for appropriate cropping pattern.“

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News Release: Epic Research Daily Agri Commodity Report Of 02 FEBRUARY 2018
Submitted on: February 02, 2018 05:14:57 AM
Submitted by: EpicResearch
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