Minister of Agriculture and Food Processing Industries Shri Sharad Pawar has called for reforms in agricultural marketing. He said, the prevailing system which comprises regulated markets set up by the States under APMC Act has become a constraint on farmers’ ability to market their produce at the best possible prices. Shri Pawar was addressing the Parliamentary Consultative Committee attached to his Ministry here today.
The Minister said, large number of intermediaries and large transaction costs, such as market fee, entry tax make marketing reforms a priority. He said, “ We continue to pursue this with States and have achieved some success. Our model APMC Act of 2003 has been adopted, to varying degrees so far by 17 States and nine States have also framed the Rules . There is no APMC Act in Bihar, Kerala, Manipur, Andaman & Nicobar Islands, Dadra, & Nagar Havel, Daman & Diu and Lakshadweep.”
Shri Pawar said, “Farmers, specially small and marginal are unable to take advantage of the market system and often have to resort to distress sale. Access to safe and scientific storage facility, coupled with efficient credit is the solution.” The Minister said that Centre endeavours to provide this through Grameen Bhandarn Yojana. Since inception of the scheme in 2001, over 25 000 godowns representing incremental capacity of about 290 lakh MT with a total investment of Rs. 800 crore have been sanctioned.
Under the Grameen Bhandaran Yojana subsidy is being provided @ 25% of the project cost to all categories of farmers, Agriculture graduates, cooperatives & CWC/SWCs. All other categories of individuals companies and corporations are being given subsidy @ 15% of the project cost. In case of NE States, hilly areas and SC/ST entrepreneurs, their cooperatives and women farmers, the subsidy is 33.33%.
This scheme has now been further rationalized, on the basis of feedback and suggestions received from the states. Capital Cost norms have been revised to more realistic levels: from Rs. 2500/- to Rs. 3500/- per tonne in respect of godowns of capacity up to 1000 tonnes and from Rs. 1875 to Rs. 3000 per tonne for godwons exceeding 1000 tonne capacity. For the North Eastern and hilly States, the norm permissible is now Rs. 4000/- per tonne. Similarly, the scheme which hitherto could take up schemes of maximum capacity of 10,000 tonnes can now go upto 30,000 tonnes (25,000 for NE and hilly States).
October 18, 2011
Rice exports from India may rise on Thai supply cut
India, the world’s second-largest rice producer, may ship 2 million tonne before March as African buyers seek cheaper alternatives to supplies from flood- hit Thailand, according to KRBL, an exporter.
“Today the cheapest rice is available in India, and that is why there is a lot of demand,” Anil Kumar Mittal, chairman of the New Delhi-based exporter, said in a phone interview. “Indian supplies of white rice are at least $135 a tonne cheaper than those from Thailand, the biggest exporter,” he said.
Rising supplies from India may ease rice prices in Chicago, which have climbed 20% in the past year, and cap global food costs monitored by the United Nations that increased 16% in September from a year earlier. Rice is the best- performing grain this year on concern that damage to crop from the worst floods in Thailand in 50 years and dry weather in Texas in the US will shrink global supplies.
“Indian exporters have signed contracts to ship about 8,00,000 tonne of the grain after the government scrapped restrictions on exports last month,” Prem Garg, managing director of Shri Lal Mahal, an exporter, said.
Buyers from African countries were signing deals to import Indian rice at prices ranging from $350 a tonne and $500 a tonne, free-on-board basis, he said.
India, which banned private companies from shipping non-basmati rice in April 2008 amid a global food crisis, partly lifted that restriction in July. “Exports may total 4 million tonne in the year that began on April 1,” Vijay Setia, president of the All India Rice Exporters Association, said on September 13.
“Thai exporters are in a dilemma now because when the government purchase program was announced, India hadn’t decided to sell its rice,” said Garg.
Thailand started a government-purchase program this month, at prices as much as 44% above market rates, to boost crop prices and rural incomes. The nation’s Permanent Secretary for Commerce Yanyong Phuangrach said on October 14 that the flooding will have a limited impact on rice shipments, and exports this year will be more than 11 million tonne.
Tropical storms have flooded 62 of Thailand’s 77 provinces, damaging 8.4 million rai (1.3 million hectares), or 14% of rice land, the Department of Disaster Prevention and Mitigation said on Monday. Unmilled rice output may be cut by 3.5 million tonne this year and floods were delaying exports, Korbsook Iamsuri, president of the Thai Rice Exporters Association said on Monday.
“The floods in Thailand may not impact global supplies much as the crop is quite good and they will not have any problem in supplying to buyers,” Garg said. Rough rice for delivery in November traded at $16.46 per 100 pounds on the Chicago Board of Trade. The price touched $16.815 on Monday, the highest level since September 23. Prices will be steady at current levels till December, Garg said.
Bloomberg
“Today the cheapest rice is available in India, and that is why there is a lot of demand,” Anil Kumar Mittal, chairman of the New Delhi-based exporter, said in a phone interview. “Indian supplies of white rice are at least $135 a tonne cheaper than those from Thailand, the biggest exporter,” he said.
Rising supplies from India may ease rice prices in Chicago, which have climbed 20% in the past year, and cap global food costs monitored by the United Nations that increased 16% in September from a year earlier. Rice is the best- performing grain this year on concern that damage to crop from the worst floods in Thailand in 50 years and dry weather in Texas in the US will shrink global supplies.
“Indian exporters have signed contracts to ship about 8,00,000 tonne of the grain after the government scrapped restrictions on exports last month,” Prem Garg, managing director of Shri Lal Mahal, an exporter, said.
Buyers from African countries were signing deals to import Indian rice at prices ranging from $350 a tonne and $500 a tonne, free-on-board basis, he said.
India, which banned private companies from shipping non-basmati rice in April 2008 amid a global food crisis, partly lifted that restriction in July. “Exports may total 4 million tonne in the year that began on April 1,” Vijay Setia, president of the All India Rice Exporters Association, said on September 13.
“Thai exporters are in a dilemma now because when the government purchase program was announced, India hadn’t decided to sell its rice,” said Garg.
Thailand started a government-purchase program this month, at prices as much as 44% above market rates, to boost crop prices and rural incomes. The nation’s Permanent Secretary for Commerce Yanyong Phuangrach said on October 14 that the flooding will have a limited impact on rice shipments, and exports this year will be more than 11 million tonne.
Tropical storms have flooded 62 of Thailand’s 77 provinces, damaging 8.4 million rai (1.3 million hectares), or 14% of rice land, the Department of Disaster Prevention and Mitigation said on Monday. Unmilled rice output may be cut by 3.5 million tonne this year and floods were delaying exports, Korbsook Iamsuri, president of the Thai Rice Exporters Association said on Monday.
“The floods in Thailand may not impact global supplies much as the crop is quite good and they will not have any problem in supplying to buyers,” Garg said. Rough rice for delivery in November traded at $16.46 per 100 pounds on the Chicago Board of Trade. The price touched $16.815 on Monday, the highest level since September 23. Prices will be steady at current levels till December, Garg said.
Bloomberg
October 14, 2011
Minimum support price for rice likely to be increased
India is likely to raise the price it pays to local farmers to buy rice in the new season which began this month, the food minister said on Thursday, a move that could help the government win political support but also stoke inflation.
The world’s second-biggest rice producer is expected to harvest at least 87 million tonne of summer-sown rice, adding to existing stocks of 22.7 million tonne. The government procures grain for its various welfare programmes.
“We have agreed to give a bonus to farmers for rice procurement. The government will take a decision soon,” K V Thomas told reporters.
The government currently pays local farmers R1,080 ($22.061) for a tonne of rice. While increasing the price it pays farmers will help the government win political support ahead of a string of state elections next year, it could worsen already high inflation.
India’s food price index rose 9.32% in the year to October 1 , and the central bank's raising of interest rates a dozen times in the past 18 months has hardly helped rein in prices.
Following a good monsoon, India is likely produce a record 245 million tonne of grain in 2011-12, up 1.4% from a year ago, raising hopes of more exports that could help bring relief to Asian importers trying to combat food-led inflation.
Thomas said the government would procure at least as much rice as it did last year— a figure that stood at 33.6 million tonne.We have enough space to store new season rice, he said.
The world’s second-biggest rice producer is expected to harvest at least 87 million tonne of summer-sown rice, adding to existing stocks of 22.7 million tonne. The government procures grain for its various welfare programmes.
“We have agreed to give a bonus to farmers for rice procurement. The government will take a decision soon,” K V Thomas told reporters.
The government currently pays local farmers R1,080 ($22.061) for a tonne of rice. While increasing the price it pays farmers will help the government win political support ahead of a string of state elections next year, it could worsen already high inflation.
India’s food price index rose 9.32% in the year to October 1 , and the central bank's raising of interest rates a dozen times in the past 18 months has hardly helped rein in prices.
Following a good monsoon, India is likely produce a record 245 million tonne of grain in 2011-12, up 1.4% from a year ago, raising hopes of more exports that could help bring relief to Asian importers trying to combat food-led inflation.
Thomas said the government would procure at least as much rice as it did last year— a figure that stood at 33.6 million tonne.We have enough space to store new season rice, he said.
Higher supply lead to fall in coconut oil prices
An increase in supply from Tamil Nadu and Kerala has led to a sharp fall in the price of coconut oil. The price today dropped to Rs 7,500 a quintal in the local market, which had touched the peak of Rs 10,400 a quintal during the second week of May.
With the end of monsoon, processing of coconut was active in Kerala, especially in the northern districts of Malappuram, Kannur and Kasargode. So, copra supply to crushing mills had increased now, said Thalath Mehamood, president, Cochin Oil Merchants Association (COMA).
The sharp increase in production in Tamil Nadu also caused a fall in wholesale prices in Kankayam, the largest coconut oil market in India. The price fell below Rs 7,000 last week. This sharp fall raised demand from FMCG companies, leading to an improvement in prices.
A section of traders told Business Standard that production of copra is yet to be active in the southern districts of Kerala, hence supply would be tight in the coming weeks. The demand for tender coconut is also on a rise after the monsoon.
The retail price of tender coconut increased to Rs 20 for each in most parts of the state. So a major chunk of coconut farmers now opt this channel as for ripe coconut they get a maximum price of Rs 10-12. This also affects the production of good quality copra in Kerala as well as in Tamil Nadu.
Meanwhile, the drop in the price of palm kernel oil also led to the fall in coconut oil price. Palm kernel oil is being widely mixed with coconut oil and sold at lower rate.
Every time coconut oil price increases, adulteration also rises. Now adulteration is active as the price of palm kernel oil dropped to Rs 5,200 a quintal from Rs 10,200 few months back. Palm kernel oil is a suitable mix for adulteration of coconut oil and 25-30 per cent mixing cannot be detected easily.
Due to this mixing, coconut oil is offered at lower rates in the retail segment. This practice is widely uses in crushing mills of Tamil Nadu that helps dealers to offer lower rate for coconut oil.
As main production season of coconut and copra begins in December, market is likely to be in a low phase, with fluctuation in prices based on the swing in demand for the next six-eight weeks.
(Business Standard)
With the end of monsoon, processing of coconut was active in Kerala, especially in the northern districts of Malappuram, Kannur and Kasargode. So, copra supply to crushing mills had increased now, said Thalath Mehamood, president, Cochin Oil Merchants Association (COMA).
The sharp increase in production in Tamil Nadu also caused a fall in wholesale prices in Kankayam, the largest coconut oil market in India. The price fell below Rs 7,000 last week. This sharp fall raised demand from FMCG companies, leading to an improvement in prices.
A section of traders told Business Standard that production of copra is yet to be active in the southern districts of Kerala, hence supply would be tight in the coming weeks. The demand for tender coconut is also on a rise after the monsoon.
The retail price of tender coconut increased to Rs 20 for each in most parts of the state. So a major chunk of coconut farmers now opt this channel as for ripe coconut they get a maximum price of Rs 10-12. This also affects the production of good quality copra in Kerala as well as in Tamil Nadu.
Meanwhile, the drop in the price of palm kernel oil also led to the fall in coconut oil price. Palm kernel oil is being widely mixed with coconut oil and sold at lower rate.
Every time coconut oil price increases, adulteration also rises. Now adulteration is active as the price of palm kernel oil dropped to Rs 5,200 a quintal from Rs 10,200 few months back. Palm kernel oil is a suitable mix for adulteration of coconut oil and 25-30 per cent mixing cannot be detected easily.
Due to this mixing, coconut oil is offered at lower rates in the retail segment. This practice is widely uses in crushing mills of Tamil Nadu that helps dealers to offer lower rate for coconut oil.
As main production season of coconut and copra begins in December, market is likely to be in a low phase, with fluctuation in prices based on the swing in demand for the next six-eight weeks.
(Business Standard)
Turmeric crop likely to be good this season
India is expected to have a bumper turmeric output this kharif season. Farmers increased area under sowing for the spice as they received higher returns for the produce last year.This year, the total production is estimated to be around 8.5 million bags (1 bag= 75 kg), while it stood at 6.5 million bags in 2010-11 and 4.8 million bags in 2009-10, traders said.
“Farmers earlier got around Rs 20-35 a kg for their produce. In the last two years, farmers have been getting good returns of Rs 175-225 a kg,” said Manubhai Shah, a Navi Mumbai-based trader.
Erode in Tamil Nadu is estimated to produce 4.5 million bags this year, compared to 3.5 million bags last year.
Farmers received a good price for their crop in the last two years, which led farmers in Andhra Pradesh and Tamil Nadu to increase acreage under the spice. Although prices have begun to witness a fall, but in 2010, prices had reached an all-time high of Rs 16,000 a quintal.
Prices have seen a decline since January as last year’s production and arrivals reached at their peak. This year’s carryforward stock could be between 1.5 million bags and 2 million bags, taking the total stock for 2011-12 to over 10 million bags, thus, stocks would be higher.
Sowing is still on and has picked up on better weather conditions. Fresh crop comes to the market from January.
Traders and analyst say prices of the spice will rise for few more weeks on strong domestic and international demand, but, bumper production will soon begin to weigh on the price of the commodity when arrival season comes near.
Turmeric prices on NCDEX have begun to move northward from September 27 and have so far seen a 23 per cent rise to Rs 5,432 a quintal.
“Currently, domestic demand is strong from north India due to the ongoing festive season, and export demand for the spice is coming in from Singapore and Malaysia,” said Nalini Rao, a spices research analyst at Angel Commodities.
Turmeric exports rose 52 per cent to 36,500 tonnes during April-August this year, according to the data released by the Spices Board of India.
Price of turmeric at spot markets varied from Rs 6,000-7,200 a quintal depending on the quality. Traders said buying support from stockists as well as retailers, driven by seasonal demand against restricted arrivals mainly pushed up prices. (Business Standard)
“Farmers earlier got around Rs 20-35 a kg for their produce. In the last two years, farmers have been getting good returns of Rs 175-225 a kg,” said Manubhai Shah, a Navi Mumbai-based trader.
Erode in Tamil Nadu is estimated to produce 4.5 million bags this year, compared to 3.5 million bags last year.
Farmers received a good price for their crop in the last two years, which led farmers in Andhra Pradesh and Tamil Nadu to increase acreage under the spice. Although prices have begun to witness a fall, but in 2010, prices had reached an all-time high of Rs 16,000 a quintal.
Prices have seen a decline since January as last year’s production and arrivals reached at their peak. This year’s carryforward stock could be between 1.5 million bags and 2 million bags, taking the total stock for 2011-12 to over 10 million bags, thus, stocks would be higher.
Sowing is still on and has picked up on better weather conditions. Fresh crop comes to the market from January.
Traders and analyst say prices of the spice will rise for few more weeks on strong domestic and international demand, but, bumper production will soon begin to weigh on the price of the commodity when arrival season comes near.
Turmeric prices on NCDEX have begun to move northward from September 27 and have so far seen a 23 per cent rise to Rs 5,432 a quintal.
“Currently, domestic demand is strong from north India due to the ongoing festive season, and export demand for the spice is coming in from Singapore and Malaysia,” said Nalini Rao, a spices research analyst at Angel Commodities.
Turmeric exports rose 52 per cent to 36,500 tonnes during April-August this year, according to the data released by the Spices Board of India.
Price of turmeric at spot markets varied from Rs 6,000-7,200 a quintal depending on the quality. Traders said buying support from stockists as well as retailers, driven by seasonal demand against restricted arrivals mainly pushed up prices. (Business Standard)
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