Daily Price Monitoring Report 11 th June 2019 Pulses Today’s developments: Govt has just released 3rd adv. estimate of food-grains for 2018-19.It has estimated3.5 million MT production of tur against the set target of 4.5 MMT. It has finalized production of tur for 2017-18 at 4.29 MMT. Actually, tur production has decreased in 2018-19 due to drought like condition in South Indian states, Maharashtra and Gujarat. Govt has released 3rd adv. estimate for chana and pegged it at 10.09 MMT against the set target of 11.50 MMT. For 2017-18 it has been finalised at 11.38MMT.However, private trades consider chana production at around 8.8 MMT this year. Production of urad has been pegged at 3.21MMT for 2018-19 in the 3rd Adv estimate against set target of 3.6MMT.It includes2.55 MMT in kharif and 0.67 MMT in rabi season. Target for kharif and rabi has been set at 2.8 and 0.8 MMT. Last year total kharif and rabi production has been finalised at 3.49MMT, including 2.75MMT in kharif and 0.74 MMT in rabi 2017-18. Govt 's 3rd adv estimate has pegged moong production at 2.23 MMT in 2018-19 against the set target of 2.25MMT.It includes1.55 in kharif and 0.70MMT in rabi season. For 2017-18 govt has estimated 2.03 MMT moong production. It includes 1.43MMTin kharif and 0.59 MMT in rabi season. Govt has released 3rd adv estimate for pulses and total kharif pulses production estimate has been pegged at 8.52 MMT while rabi pulses estimate has been pegged at 14.70 MMT for 2018-19.Thus total production has been pegged at 23.22MMT against the set target of 25.95 MMT. Total pulses production in 2017-18 has been finalised at 25.42 MMT Recent Developments that are still Influencing Markets: (10 May,2019) : Moong market traded lower due to new arrival and poor demand for dhoya dal. New moong in MP was traded at Rs 6300-6400.Arrival was registered at 6 to 7 motors. Moong sourced from Jodhpur is in strong hands. As arrival pressure decreases, moong may trade up by Rs 200 from current level. Nafed still has1.77 lakh MT in stock. Out of total 1.63 lakh MT is old stock while14506 MT has been procured from summer crop. As procurement is on, stock would increase. New crop is coming from UP,MP and Bihar. So range bound movement might be seen in moong (07 May, 2019) Chickpea market continues to be under pressure due to weak buying. Firmness in chickpea market beyond a certain level is highly unlikely due to huge stock position with nafed. NAFED has a stock of 22 LMT (Old plus New) of chickpea. Lower crop size can be easily covered by stock position. Chickpea is expected to remain weak with small technical recoveries. (4 May, 2019) Chana traded slightly weak taking clue from weak futures. Buyers remain wary of any bulk purchase. Chana in delhi market was traded at Rs 4600-4625(MP chana) while Rajasthan chana was quoted at Rs 4700. There was no trade at this price. Arrival was reported at 20-25 motors. Firmness in cash market depends on Nafed’s selling strategy. (4 May, 2019) Urad market is likely to trade firm as delayed monsoon has raised fear of late planting. Stock at port is decreasing while stockiest are unwilling to release urad at current price. In Mumbai market urad is being traded at Rs 4900-4950.Supply of green Urad from UP would remain restricted as crop size is lower and is mostly consumed in dhoya dal.
Transcript
Daily Price Monitoring Report 11th June 2019 27/09/2017
Pulses Today’s developments:
Govt has just released 3rd adv. estimate of food-grains for 2018-19.It has estimated3.5 million MT production of tur against the set target of 4.5 MMT. It has finalized production of tur for 2017-18 at 4.29 MMT. Actually, tur production has decreased in 2018-19 due to drought like condition in South Indian states, Maharashtra and Gujarat.
Govt has released 3rd adv. estimate for chana and pegged it at 10.09 MMT against the set target of 11.50 MMT. For 2017-18 it has been finalised at 11.38MMT.However, private trades consider chana production at around 8.8 MMT this year.
Production of urad has been pegged at 3.21MMT for 2018-19 in the 3rd Adv estimate against set target of 3.6MMT.It includes2.55 MMT in kharif and 0.67 MMT in rabi season. Target for kharif and rabi has been set at 2.8 and 0.8 MMT. Last year total kharif and rabi production has been finalised at 3.49MMT, including 2.75MMT in kharif and 0.74 MMT in rabi 2017-18.
Govt 's 3rd adv estimate has pegged moong production at 2.23 MMT in 2018-19 against the set target of 2.25MMT.It includes1.55 in kharif and 0.70MMT in rabi season. For 2017-18 govt has estimated 2.03 MMT moong production. It includes 1.43MMTin kharif and 0.59 MMT in rabi season.
Govt has released 3rd adv estimate for pulses and total kharif pulses production estimate has been
pegged at 8.52 MMT while rabi pulses estimate has been pegged at 14.70 MMT for 2018-19.Thus
total production has been pegged at 23.22MMT against the set target of 25.95 MMT. Total pulses
production in 2017-18 has been finalised at 25.42 MMT
Recent Developments that are still Influencing Markets:
(10 May,2019) : Moong market traded lower due to new arrival and poor demand for dhoya dal. New moong in MP was traded at Rs 6300-6400.Arrival was registered at 6 to 7 motors. Moong sourced from Jodhpur is in strong hands. As arrival pressure decreases, moong may trade up by Rs 200 from current level. Nafed still has1.77 lakh MT in stock. Out of total 1.63 lakh MT is old stock while14506 MT has been procured from summer crop. As procurement is on, stock would increase. New crop is coming from UP,MP and Bihar. So range bound movement might be seen in moong
(07 May, 2019) Chickpea market continues to be under pressure due to weak buying. Firmness in chickpea market beyond a certain level is highly unlikely due to huge stock position with nafed. NAFED has a stock of 22 LMT (Old plus New) of chickpea. Lower crop size can be easily covered by stock position. Chickpea is expected to remain weak with small technical recoveries.
(4 May, 2019) Chana traded slightly weak taking clue from weak futures. Buyers remain wary of any bulk purchase. Chana in delhi market was traded at Rs 4600-4625(MP chana) while Rajasthan chana was quoted at Rs 4700. There was no trade at this price. Arrival was reported at 20-25 motors. Firmness in cash market depends on Nafed’s selling strategy.
(4 May, 2019) Urad market is likely to trade firm as delayed monsoon has raised fear of late planting. Stock at port is decreasing while stockiest are unwilling to release urad at current price. In Mumbai market urad is being traded at Rs 4900-4950.Supply of green Urad from UP would remain restricted as crop size is lower and is mostly consumed in dhoya dal.
Daily Price Monitoring Report 11th June 2019 27/09/2017
(4 May, 2019) Tur market is likely to stay steady or slightly move down as buying got struck at
higher level. However, overall tone remains firm as supply side would be tight in coming months. Tur in Gulberga market is being traded at RS6000-6050 per qtl.It may move down by Rs 100 more
(31 May, 2019) Lower pre-monsoon rainfall has started affecting kharif sowing in south Indian states. Monsoon would hit south India by 10 to 12th June. If it further gets delayed, its implication on kharif crop size would be serious. However, IMD is hopeful of normal monsoon this year.
(29 May, 2019) Nafed has purchased total 638799.38lakh tonne chana till 28th May-2019.Nafed has procured486781 lakh tonne in MP, 80320.69 MT in Raj,34500MT in Telangana18892.71 MT in Maharashtra15491.76 in Gujarat,2594.65 MT in AP,207.60 MT in Haryana and 10.25 MT in UP so far. Total stock of chana in Nafed custody is 22,41,547 MT right now and it may go up further as procurement is on.Out of total stock old is 1624310 MT while new is 617237 MT.The fig taken is on 27 th May-2019.
(28 May 2019) Details of other pulses stock in Nafed custody are as follows: Tur-838355 MT(old-562969 & old -275386 MT,urad-334552 MT(Old-320720,new-13832 MT),Moong-177374 MT(old-162868,new-14506 MT,Masur-191444MT(old-150802,new 40642 MT.
(26 May,2019) The govt may hike pulses import quota for millers due to tightening supply of tur in domestic market and lower production in other origins too. Tur price in domestic market has crossed MSP level and is ruling at Rs5800-6100 per qtl., depending on quality of the crop. Govt may allow additional import of few lakh MT of tur alone. The current quota fixed at 2 lakh MT.
(25 May 2019) Market sources expect tur import to increase by 6 to 7 lakh MT,if govt. permits addition import to control increasing price of tur. India imports tur from Malawi and Tanzania, Urad from Myanmar and yellow peas from Canada, Ukraine and Russia. Currently, India allows 2lakh MT tur import and 1.5 lakh MT each Urad, Moong and peas.
(23 May ,2019) Govt may increase tur import quota sensing short supply in coming months.
(20 May,2019) Pulses market continued to trade firm taking clue from firm futures and higher quotes in global market. Demand for dal and fresh buying by mills have lent support to pulses market. Chana in Delhi market traded Rs100 up to Rs 4775-4800 in Delhi while Australian chana in Mumbai traded up by Rs 100 to Rs4650-4700.kabuli Sudan at Mumbai was offered at Rs4650.Market fundamental remains supportive to cash chana market and it may move further up by Rs 200 this week. At this level one good correction is expected.
(18 May 2019) Pulses price movement would depend on monsoon progress and result of Lok Sabha election due on 23 rd May-2019.Pulses traded firm during last two weeks and tur crossed all barriers and traded above MSP (Rs 5675) in various markets. It is still ruling up. However, all other pulses tried to touch MSP but could not touch its MSP level. If sitting govt. is elected once again, market may stabilize as Govt would not allow market to cross beyond a certain level.
(15 May 2019) Tur market continued to trade firm and may move up further. Lower crop size in India, declining old stock and lower availability of Tur sourced from African countries have helped market to trade above MSP first time after 2.5 years. Import has been restricted at 2lakh MT while govt would import 1.75 lakh MT. Besides, there is a scope of more import through G2G basis if prices moves beyond 6000 level.in Gulberga market tur is being traded at Rs5550-5750.Overall tone remains firm.
Daily Price Monitoring Report 11th June 2019 27/09/2017
Daily Price Monitoring Report 11th June 2019 27/09/2017
Chana at NCDEX
Contract Open High Low Close Change Volume O.Int
19-Jun 4415 4415 4348 4353 -57 33270 17870
19-Jul 4460 4466 4393 4399 -56 68060 156380
19-Aug 4489 4503 4434 4438 -64 11640 26730
As on 10th June - 2019 at 6pm Rs/Quintal
Daily Price Monitoring Report 11th June 2019 27/09/2017
Groundnut Recent updates:
(11.06.2019) As on 10thJune 2019, Nafed has procured 26.29 MT of Groundnut (Rabi -2019) in the district of Malkangiri of Odisha state. It procured total 124.95 MT at MSP price Rs. 4890 per quintal from 63 farmers.
(11.06.2019) As on 10thJune 2019, Nafed sold total groundnut K-17 & K-18 at 3320 MT and 4595MT respectively in India. It has disposed total 9.1lakh tonnes of groundnut K-17 and holds remaining balance at 1.07 lakh tonnes so far in Gujarat market only. Additionally, Nafed has sold total 2.35 lakh tonnes of groundnut K-18 and holds remaining balance at 4.67 lakh tonnes so far.
Developments that are still Influencing Markets: (07.06.2019) As per 3rd advanced estimates, ministry estimates lower Indian groundnut crop
(Kharif and Rabi) at 65.02 lakh tonnes for 2018/19 season against 92.53 lakh tonnes in 2017/18. Kharif groundnut crop size during 2018-19 is estimated at 51.53 lakh tonnes which is 29.7% lower than 75.95 lakh tonnes in 2017-18. Less rainfall at initial stage of crop and lower acreage are the main reason to cut output of Groundnut.
(03.06.2019) Total groundnut output in Malkangiri was higher at 1.5 lakh quintal against 30,000 quintals last year. The district covered total 12,000 hectares of groundnut in this season. The agencies may buy one quintal of average fair quality (AFQ) groundnut at MSP price i.e. Rs. 4890 per quintal. A farmer is eligible to sell 30 quintals of groundnuts.
(22.05.2019) The state government got the approval from ministry of Agriculture to procure
groundnut and Sunflower seed of Rabi season in Odisha. The proposal for procurement of
shelled ground nut has been approved for 6580 tonnes at MSP prices i.e. 4890 per quintal and
10,500 tonnes of Sunflower seeds at MSP price Rs. 5388 per quintal from registered farmers.
The procurement operation has been started and will continue for two months till July 27,2019.
(20.05.2019) Indian Oilseeds & Produce Export Promotion Council (IOPEPC) is planning to develop cluster-based production mainly for groundnut and sesame seed which will be pesticide-free. It is also targeting to cultivate other varieties of oilseeds to fulfil global demand as well. It focuses towards drip irrigation facilities so that monsoon dependency for better crop growth could be reduced. In the meeting, council can discuss the expected crop size of groundnut and sesame for Rabi 2019.
(30.04.2019) As per APEDA data, groundnut shipment reported lower by 3.13% to 488233 MT during April-March 2019 amounting total Rs. 3296 crores as compared to 504038 MT in last year during the same period of time. However, the shipment is higher by 26.290% as compared to 386594 MT in April to February 2019.
rainfall at initial stage of crop and lower acreage are the main reason to cut output of Groundnut.
(22.02.2019) We expects AP groundnut crop size at 4.21 lakh metric tonnes for 2018/19 season lower from previous year crop size i.e. 5.48 lakh metric tonnes as farmers covered the lower sowing area for this season.
(15.02.2019) As per recent ministry report, total Rabi groundnut area in India has been reported down at 4.81 Lakh hac. in this year as compared to 6.27 lakh hac. in previous year. In AP, it is recorded at 0.58 lakh hac. in this year lower than 0.85 lakh hac. in the previous year.
Daily Price Monitoring Report 11th June 2019 27/09/2017
(18.01.2019)-In the second advanced estimates AP has downward revised the Kharif production
estimate of GN to 3.29 lakh tons as against 4.05 lakh tons in 1stAdvanced estimates. Rabi groundnut production is estimated at 1.49 lakh tons.
Price & Arrival:
Groundnut
State/District Market Variety
Modal Price (Rs/Qtl)
Change
Arrivals (Qtl)
Change Source 10-
Jun-19 8-Jun-
19
10-Jun-19
8-Jun-19
Andhra Pradesh
Adoni 6368 5866 NA 7 39 -32 NAM
Kadapa Local 3779 NA NA 32 NA NA NAM
Kurnool 5300 4370 NA 6 77 NA NAM
Yemmiganur 5690 NA NA 1 NA NA NAM
Rajkot 4700 NA NA 24 NA NA NAM
Telangana
Nagarkurnool NA NA NA NA NA NA NAM
Suryapeta 5309 NA NA 12 NA NA NAM
Tandur NA NA NA NA NA NA NAM
Wanaparthy Town
5453 NA NA 6 NA NA
NAM
Daily Price Monitoring Report 11th June 2019 27/09/2017
Onion
Today’s Development:
In Maharashtra, Rabi acreage (Rabi+Unhali) is estimated to be 2.88 lakh hectares compared to last year’s area of 3.39 lakh hectares, down 15% as per our estimates.
Recent Developments that are still influencing the Market: (6th June 2019) Exports are 11.17 lakh tons compared to last year 7.49 lakh tons (During
September to February month) as per DGCIS data. Exports incentives are 10% till 30th June 2019
under MEIS scheme which may push the prices further upward.
(1st June 2019) - On Saturday lower arrivals reported in most of the markets and modal prices in Lasalgaon are trading near Rs 1200/ quintal.
(30th May 2019) - Onion prices are trading on higher side in most of the markets and are likely to increase further in coming days.
(29th May 2019) - In major producing onion states like Maharashtra, Madhya Pradesh and Gujarat, arrivals during the period (1st May -26th May 2019) are lower than last year during same period by 32.66%, 49.76%, and 43.76% respectively. (Source: Agmarknet). Reason for lower arrivals in the markets amid lower anticipated production may be release of the onion crop with slower pace as traders/farmers are expecting to fetch higher prices in coming months.
(26th May 2019) - Onion prices are trading firm in Maharashtra and are likely to remain on higher side for coming months.
(22nd May 2019) - Prices are trading firm in most of the markets and are likely to increase further as lower production estimates in Maharashtra.
(21st May 2019) - Prices are trading on higher side compared to last year in most of the markets and are likely to increase further in coming weeks amid lower Rabi crop estimation this year.
(20th May 2019) - In Lasalgaon, modal prices are trading near Rs 950/ quintal compared to last year’s Rs 701/ quintal during same time.
Price and Arrivals in Major Markets Onion
State Market Modal Wholesale Prices (Rs/Qtl) Arrivals in Tons
In West Bengal, loading in cold storage is completed and traders are expecting 85% capacity
utilization this year from a total storage of 70.62 lakh tons. So far approximately 10%-12%
released which is higher by 2-3% than last year.
Developments that are still influencing the Markets:
(6th June 2019) - In Agra, potato prices are trading near Rs 800/ quintal compared to Rs 1230/
quintal in corresponding period last year. According to trade sources so far 12% potato has been
released from the cold storages with a total capacity of 25.40 lakh tons.
(1st June 2019) - In Agra, cold store potato price are trading near Rs 900-Rs 1000/ quintal. Fresh crop from farmers shed is fetching a price of Rs 700-850/ quintal.
(30th May 2019) - In Agra, potato prices are trading near Rs 730/ quintal compared to Rs 1250/
quintal in corresponding period last year. This year cold storage release is delayed by 10-15 days
compared to last year.
(28th May 2019) - In U.P, release from cold store is in progress and picking up pace, meanwhile
farmer’s stocked crops in their farms sheds is almost over.
(25th May 2019) - Potato prices are trading firm to steady in most of the markets and are expected to increase further in coming days as release from cold storage will be full fledge.
(20th May 2019) - In West Bengal, loading in cold storage is completed and traders are
expecting 85% capacity utilization this year compared to last year 92% capacity utilization from a
total storage of 70.62 lakh tons. Release has started in smaller quantity and expected to pick up
pace in couple of weeks.
(14th May 2019) - In U.P, traders are expecting cold stores to open full fledge in a week,
meanwhile farmers are releasing crop stocked in their farms sheds. Once release from cold
storage starts prices are likely to move upward.
Price and Arrivals at Major Markets
Potato
State Markets Modal Wholesale Prices (Rs/Qtl) Arrivals in Tons
Today’s Developments: Tomato current price are trading on higher side compared to three year’s seasonal average price
in most of the markets because of lower crop size this year due to lesser water availability in
producing regions.
In Andhra Pradesh, prices are trading on higher side because of lower arrivals from producing
regions amid lower crop size. Prices are expected to come down slightly in coming week
because of arrival of summer crop from Chitoor and Anantpur district.
Developments that are still influencing the Market: ( 6th June 2019) - In Madanapalle, prices have dropped down by Rs. 500 to Rs. 800/ quintal
because of increase in arrivals from producing regions.
(3rd June 2019) - On Tuesday, prices have dropped down in few markets because of increase in arrivals from producing regions.
(1st June 2019) - Higher arrivals reported in most of the markets but prices are firm and likely to remain firm in most of the markets for coming weeks.
(30th May 2019) - In Andhra Pradesh, prices are trading on higher side because of lower arrivals
from producing regions amid lower crop size. Prices are expected to trade in similar range for
coming weeks because of lower crop size of summer crop due lower water availability in dams.
(28th May 2019) - In Madanapalle, prices are trading near Rs 2650/quintal compared to last
year’s Rs 500/ quintal during same time period.
(25th May 2019) - In coming weeks prices are expected to remain firm in most of the markets
and are likely to remain on higher side compared to last year because of lower crop size from
South Indian states.
(21st May 2019) - In Madanapalle, Prices has touched a level of Rs 4080/ quintal and are likely
to trade in this range only for coming days.
Price and Arrivals in Major Markets
Tomato
State Markets Modal Wholesale Prices (Rs/Qtl.) Arrivals in Tons
In Andhra Pradesh and Telangana, Turmeric sowing current year reported delay by 10 – 15 days due to delayed monsoon, sources revealed that area may go down current year, farmer may shift to Maize crop.
Rainfall during 01-03-2019 to 05-06-2019, in Marathwada region lower by 77% and in Madhya Maharashtra region rainfall departure lower by 95%. If it will continue we expect Turmeric sowing area drastically come down and likely to support prices. Farmers were waiting for monsoon rainfall.
Recent Developments that are still Influencing Markets:
In Erode mandi new Turmeric supply reported around on an average daily basis 4,000 – 4,300 quintals.
In Warangal market, new Turmeric entered to the market, on an average daily basis 3,250– 3,900 quintal.
As per Agriwatch’s Second advance production estimate, Turmeric production for 2019-20 is estimated at 532,353 MT (basis dry crop) compared to previous year’s 476,771 MT. Turmeric production may go down further as Maharashtra standing crop is at very crucial stage.
As on 10th Jun, 2019 at 5:00 pm Prices in Rs/quintal, Volumes and Open interest in MT
Chilli
Today’s Developments:
Guntur chilli market reopen with higher prices.
Red chilli prices likely to go up further due to lower stocks available in cold storage. As per trade information, chilli cold storage stocks as on date (including old and new crops) in Guntur stood at 216,000 to 225,000 MT and in Andhra Pradesh around 319,500 to 324,000 MT according to various trade estimates.
Recent Developments that are still Influencing Markets:
Continued export demand reported well from China, Sri Lanka, Malaysia, Bangladesh and UAE etc.
Current year chilli sowing likely to start from July first week. We expect sowing area may increase due to prevailing higher prices and expecting higher further due to lower cold storage stocks, however monsoon rainfall is crucial factor for chilli sowing area.
As per Agriwatch second advance estimate, Andhra Pradesh production likely to come 434,449 MT, last year it was 341,671 MT. In Andhra Pradesh acreage to rise by 45% from last year’s 87,608 hectares to 127,032 hectares.
As per Agriwatch’s second advance production estimate, Red Chilli production for 2019-20 is estimated at 12.22 lakh MT. Previous year’s production was 10.50 lakh MT.
*Difference between current and previous day’s prices.
Daily Price Monitoring Report 11th June, 2019
27/09/2017
Sugar
Today’s Developments:
Mixed trend was seen Indian sugar market across India on Monday. Mills are warned by the government to sell sugar not below MSP in all sugar producing states, therefore, prices are trending above minimum support price. The prices are expected to remain down for coming few days due to less demand and the prices in UP is likely to remain bearish due to incoming supply of sugar from Maharashtra. Prices might remain at higher side if government accepts the rise in the minimum support price and creates export opportunities.
Kolhapur sugar market price stood at Rs.3140 and khatauli market prices stood slightly higher at Rs. 3380.
According to the Maharashtra sources, in 2019-20 season, over 300LT less cane is expected for the crush to 650LT from 8.5 lakh hectares available cane as against 952LT from the 11 lakh hectares reported for 2018-19.
Today’s Developments that are still Influencing Markets:
(8th June 2019) Maharashtra is likely to divert 25% of cane to ethanol production due to low prices of sugar, surplus stocks and pilling cane arrears. Maharashtra sugar commissioner has made a proposal to Chief Minister for the assistance of promotion of ethanol production from sugarcane juice in the state.
(8th June 2019) Maharashtra sugar mills have, by the end of crushing season, paid 94 per cent Fair and Remunerative Price (FRP) to sugarcane farmers. According to industry experts, this is the first time that farmers have received almost all the payment without any delay. Of the total payable FRP of Rs.23,000 crore, mills have paid about Rs.21, 604 crore to over 20 lakh cane growers in the State.
(7th June 2019) In Maharashtra, around 20,000 villages are facing severe drinking water crises with no water left in 35 major and medium dams. In about 1,000 small dams, the water level is less than 7.6%, according to the data released by Maharashtra water resources department. In first week of June in 2018, the average water level in these dams was 17.89 %.
(5th June 2019) Total sugarcane production in India during 2018-19 is estimated at a record of 400.37 million tonnes. The production of sugarcane during 2018-19 is higher by 50.59 million tonnes than the average sugarcane production of 349.78 million tonnes as per the data released by 3rd advance estimates of production by Department of Agriculture, Cooperation and Farmers Welfare.
(4th June 2019) Maharashtra sugar millers have opted to export sugar through third party quota at Rs. 28-28.5/kg selling 3-4 lakh tonnes sugar. Tepid demand of sugar in the domestic market, millers are not able to sell its sugar at MSP. This has forced them to store sugar stocks in open and as monsoon is arriving very soon according IMD, therefore, selling sugar on third party export quota over and above their own export quota, helped the mills liquidate the excess sugar with
them.
(1st June 2019) Government fixes June sales quota slightly higher at 21.5 LT to each of 534 mills in the country against 21LT for last month along with added incentivized quota to those mills who
have completed their export targets under MIEQ Quota.
Daily Price Monitoring Report 11th June, 2019
27/09/2017
(30th May 2019) Haryana cooperative sugar mills received Rs.350 crore on Tuesday to clear arrears and paying off to sugarcane farmers for crushing season of 2018-19. Payments of Rs.1,098.38 crore had been made till now and outstanding dues is decided to pay in the next coming week.
(29th May 2019) The centre has asked the sugar mills to calculate the cost of sugar production which may range around Rs.34 but the sources says that the stress would be relieved if the prices are finalized at Rs.35-36. The government has finally came with initiation for the solution regarding setting of the minimum support price which is much lower than the cost of sugar production.
Prices
Sugar (M grade)
State/ District Market
Modal Price (Rs /Qtl)
Change Source 10 June-19 8 June-19
Maharashtra Kolhapur 3140 3150 -10 AW
Uttar Pradesh Khatauli 3380 3400 -20 AW
Andhra Pradesh Vijayawada 3660 3660 Unch AW
Delhi Delhi 3300 3270 30 AW
Daily Price Monitoring Report 11th June, 2019
27/09/2017
Cotton Today’s Developments:
Cotton prices expected to trade higher side as the crop has been short by 10-12% over last year and as the arrivals are on verge of end. Moreover, raising domestic demand and procurement by CCI also support prices.
In Punjab, cotton crop has been sown in nearly 4 lakh hectares and may go up by 10,000 hectares as the sowing is still going on, according to the State Agriculture department. The acreage was nearly 2.84 lakh hectares in 2018. In Haryana, farmers had sown cotton in 6.35 lakh hectares till June 6. Last year the total area under cotton was 6.61 lakh hectares.
India’s exports to Pakistan too have dipped by about 32% to $171.34 million in March as India raised the customs duty to 200% on all goods imported from Pakistan. According to the data of the Commerce Ministry, imports declined to $2.84 million in March as compared to $34.61 million in March 2018.
Recent Developments that are still Influencing Market:
(8th June 2019) The bulls continue to point to ever increasing imports of U.S. cotton by India. The world’s largest cotton producing country finds itself with a weather reduced 2018-19 crop and is having to import cotton as the price of its dwindling domestic supplies increase almost daily. India will continue to buy U.S. cotton and this will offer slight upward price support for New York.
(7th June 2019) The country has produced a record of 275.93 million tons of cotton, last year 328.05 million tons was produced according to the third advance production estimate released by the Ministry of Agriculture, in 2018-19.
(5th June 2019) Cotton Association of India (CAI) recently released its latest cotton crop estimating the crop size at 315 lakh bales, lowest in over a decade and significantly down from the previous year's output estimate of 365 lakh bales. The total cotton supply estimated by the CAI during the period from October 2018 to May 2019 is 325 lakh bales including the arrival of 288 lakh bales and imports of 9 lakh bales up to May 31, 2019.
(4th June 2019) From May 5 to Jun 3, the cumulative turnover of reserve cotton was 209,000 tons, and the turnover rate was 89.71%. On 31st May, the reserve sales of reserve cotton was 9970.4702 tons, the actual turnover was 8146.5367 tons, and the turnover rate was 81.71%.
(1st June 2019) Cotton sowing has already inclined by 10-20% in northern India and further simultaneously the total acreage for cotton is expected to increase by 7-8% due to low carryover stock and steady prices prevailing in the market for cotton encouraging sowing in some areas of north India. Cotton seed sale is up in Hanumangarh, Rajasthan due to re-sowing after rains in recent weeks damaged the crop.
(30th May 2019) The domestic cotton prices is on hike up by 3% in a week due to rise in New York cotton future prices and lower arrivals in the market. Further hike in prices may notice if the government announces any hike in MSP for the ensuing kharif crop. Maharashtra government recommended an increase a 15% increase in MSP.
(30th May 2019) Traders and ginners in India have hold their cotton stocks due to weight loss in May month as it results in a loss of about Rs.800/candy to Rs.950/candy at current rates. Since cotton absorbs and exudes the moisture, traders are likely to wait until the onset of monsoon resulting in increase in weight to avoid the weight loss occurred in May month.
Daily Price Monitoring Report 11th June, 2019
27/09/2017
(29th May 2019) The farmers are likely to shift their crop from cotton to soybean as the latter crop is sturdy and can withstand adverse weather conditions and even it has better export opportunities over cotton. Also the shift is seen due to IMD’s forecast that the onset monsoon is delayed by 7 days in Kerala and due to scorching heat soybean seems to be a better source of utilizing the land and resources. The greatest rise in soybean area could be in Maharashtra, where farmers were not happy with returns from cotton.
(28th May 2019) As Punjab government has targeted its cotton area to 4 lakhs, the following varieties 7172 cotton seed, BT 7172 and Bio Seed 11 have been recommended which will lower their cost of production with less usage of fertilizers and pesticides. Also the Punjab government is encouraging farmers to adopt drip irrigation technology on cotton crop by providing a subsidy of 80 per cent on the total cost of the project. In spite of government’s recommendation Punjab farmers are likely to shift to paddy cultivation.
