Epic Research Daily Agri Commodity Report Of 22 May 2018

The Sugar industry has urged the government not to address falling prices by introducing the regulated release mechanism, which dictates how much Sugar factories can sell in the open market on a monthly basis. In a letter written to the consumer affairs, food and public distribution ministry, the Indian Sugar Mills Association (ISMA) said that the Sugarcane price to be paid by mills should be calculated on the basis of the revenue realised from Sugar and its by-product, and not the fair and remunerative price or FRP fixed by the Centre.

The textile industry in the south expects the Union government to soon come out with relaxation of cabotage rules for movement of Cotton from Gujarat to Tamil Nadu by sea. Centre has plans to come out with relaxation of cabotage rules for certain agricultural commodities. Millers request centre to include cotton too for the benefit of Cotton farmers and the textile industry. Textile processing facilities are spread across clusters in different States and hence, transport cost is the key to determining the cost competitiveness of the industry. Mills in Tamil Nadu buy 60 lakh to 70 lakh bales of Cotton from Gujarat every year. The southern States account for almost 60% of spinning capacity in the country.

Sowing in the current kharif season has commenced in right earnest with an area of 54 lakh hectares brought under cultivation till 18th May 2018, according to data released by the Agriculture Ministry. A total of 55 lakh hectares was covered during the same period last year. This is despite the fact that the total live storage capacity in 76 reservoirs used for irrigation stood at 22.66 billion cubic metre (bcm), which was 19% of the total capacity. As per the data released by Central Water Commission, the storage levels during the corresponding week last year stood at 23% of the total capacity.

Economic News

The agriculture ministry on Wednesday said that farmer-friendly policy measures have helped reduce import of pulses, wheat and edible oils. Import of pulses declined by 10 lakh tonnes from FY17 to 56.5 lakh tonnes in 2017-18, resulting in saving of foreign exchange amounting to Rs 9,775 crore, the ministry said in a statement. As per the government’s third advance estimate, output of pulses — largely gram, urad and tur — is projected at 24.51 million tonnes in 2017-18 as a result of significant increase in the area coverage and productivity of all major pulses. In 2016-17, production of pulses was pegged at 23.13 million tonnes. To check rise in price of pulses, the Centre has been taking steps to boost their output. India is the biggest producer, importer (4- 6mt) and consumer (26-27 million tonnes) of pulses in the world. To ensure that farmers get remunerative prices, the government has imposed import duty and put quantitative restrictions on the various varieties of pulses. Import duty on chickpeas has been fixed at 60%, while that for yellow peas is 50%, 30% for lentils and 10% for tur.

The government has decided not to hike prices of foodgrains sold via public distribution system (PDS) for one more year, Food Minister Ram Vilas Paswan said today. Foodgrains via ration shops are supplied at a highly subsidised rate of Rs 3/kg for rice, Rs 2/kg for wheat and Rs 1/kg for coarse grains via PDS as per the National Food Security Act (NFSA). "The Prime Minister has approved to keep central issue price of rice, wheat and coarse grains unchanged at the rate of Rs 3/2/1 per kg, respectively for further one year," Paswan told PTI. By keeping the central issue price of food grains unchanged under the NFSA, the government has shown its commitment towards the well-being of depressed class, he said. Under the NFSA, which was passed in Parliament in 2013 during the previous UPA regime, there is a provision for revision of the issue prices of food grains every three years.

Trading Recommendations

SELL CORIANDER MAY BELOW 4670 TARGET 4640/4600/4550 SL 4720
BUY TURMERIC MAY ABOVE 7230 TARGET 7260/7300/7350 SL 7280
SELL GUARGUM5 MAY BELOW 8140 TARGET 8110/8070/8020 SL 8190

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This release was published on openPR.