Prices of Essential Commodities and imports
The prices of essential commodities like Wheat and Pulses has sky-rocketed in the last few weeks. Despite GOI’s assurance of a good wheat crop, the prices have not come down. Retail prices of wheat in some areas are as under;
Delhi – Rs.11 – 12 per kg
Bombay – Rs.15 per kg
Hyderabad – Rs.18 per kg
The average price from these three major cities is Rs.15 per kg, where as the Minimum Support Price (MSP) offered to the farmers is Rs.6.40 per kg. The prices to the consumer are 134% above the MSP. In the wake of the price increase GOI imported 0.5 MMT of wheat in the first week of June and tendered for import of another 3.5 MMT. Lat week GOI allowed imports of wheat by private end users also under the same norms as State Trading Corporation (STC), without any Duty. As per reports available, Food Corporation of India (FCI) has been able to procure only 9 MMT of wheat, against 17 MMT it procured last year.
In the world market, the wheat stocks are expected to be lowest since 1981-82, thus putting pressure on supply and increasing prices.
The rates of pulses also is very high and GOI has allowed the import of pulses and sugar as well under duty free norms.
With lower rains being forecast and high demand of pulses, sugar, and wheat, it unlikely that GOI will have a chance to stop these imports in near future and India is likely to be a net importer to wheat in times to come.
With regard to corn, the prices are also high and few of the areas where production is lower or non existent, but the demand is high are suffering due to non availability of corn. Such areas include Gujarat, Maharashtra and northern parts of India. Yellow corn this week traded at an average price of $137 per MT, which last week was $128 per MT and increase of about $9 per MT.
Discussions with farmers in Punjab, who had grown corn this season (Rabi) has revealed that they have sold corn at a price of Rs.7000 per ton, but as they grow only a small quantity, they are not able to cater to the demand. In most of the areas, where rain fed agriculture is practiced, farmers are not is a position to replace seeds and end up using the grain saved as seed, which reduces the production of corn. In some areas Bihar crop was available at Rs.Rs.5600 delivered, but with high moisture content, and the grains were not fit for storage. Even during transit, heavy losses due to spoilage were seen.
The price of corn is similar to last year on an average at the Mandi levels ($129 – 130 per MT), but the prices at the end user point are higher due high freight rates (due to hike in prices of Diesel and also changes in the loading of trucks, which has been fixed at 9 MT).
Pearl Millet prices dropped from $185 MT in the week ending Jun 17 to $176 per MT this week, a drop of 4.8%, but the prices are still higher than last years price of $143 per MT.
Barley prices have been consistently coming down and this week averaged $152 per MT at the Markets. Last year during the same period the prices were $144 per MT.
Grain Sorghum prices came down by about $22.4 per MT to $153 per MT, due to higher arrivals in Maharashtra. Prices in Rajasthan though were higher at $234 per MT.
With other grain prices including wheat much higher than corn and likely to stay that way, it will not be feasible for the poultry industry to switch to other coarse cereals. Even in the world market, wheat use for feed is likely to decline, due to higher wheat price world over, putting pressure on corn.
In the US the price of Corn on CBOT for July delivery was lower than last weeks close of $92.5 per MT and ended at $89.83 per MT. December corn closed at $99.97 per MT.
Biotechnology and dead sheep
Over the last one week, several reports have appeared in the section of the press linking death of several sheep in Warangal District of Andhra Pradesh after feeding on Bt Cotton stubble in the area. While the NGO’s against the technology are crying hoarse to ban the cultivation of the Bt Cotton, the Genetic Engineering Approval Committee (GEAC) has found inconclusive evidence linking death of sheep to Bt Cotton.
All biotech products are released by GEAC after thorough evaluation of the biosafety data, which also includes feeding studies on cows, goat, fish and mice. In this instance the reports indicate no toxic effects of Cry1Ac on lactating cows, goats, fish and mice.
Reports from ISAAA indicates that feeding studies on mice show that an intake of 4300 mg Cry1Ac/kg body weight had no ill effects on the mice. Studies on goats also show that in order to have an intake of 4300 mg of Cry1Ac/Kg of body weight, a 15 kg goat should eat 24,339 kg of leaf/50,300 kg of boll rind, which is not feasible.
While India at this point needs a second green revolution to feed its burgeoning population and also make way for better profits for the farmers, those against the technology it seems do not want the farmers to prosper. Honourable President, Shri.A P J Abdul Kalam and Prime Minister Shri.Manmohan Singh are keen on the technological advancements in agriculture, and only biotechnology can help India feed its millions. The father of Green Revolution in India, Dr.Norman Bourlaugh has also indicated that the technology can help developing nations, much more, specially countries like India and continent of Africa where there is poverty and starvation.
In the current scenario, in hot summer months of June and July, when vegetable prices are high, it just might be possible to produce tomatos, brinjals and okra which can withstand heat, using biotechnology. Both, the farmers and consumers can benefit from the use of the technology and provide nutritious food throughout the year.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jun 24, 2006
Saturday, June 24, 2006
Tuesday, June 13, 2006
Corn supply in the world; CUTC Conference in Dallas
Corn supply in the world
The week’s highlights are:
• Corn futures are down 17.5 cents per bushel ($6.7 per MT) from last Friday’s close
• Corn and barley plantings are 100% complete
• 71 percent of the U.S. corn crop is in good-to-excellent condition
• Weather: rain is moving across the cornbelt this weekend which is expected to keep the crop on pace for a high yield potential.
• FOB Corn US Gulf 111.40 per MT
• Latest WASDE highlights:
Corn production: 268 Million Metric Tons (down from last year’s 282 MMT)
Corn exports: 54.6 Million Metric Tons (up from last year’s 52.7 MMT)
Ethanol use: 54.6 MMT (up from last year’s 40.6 MMT; equal to exports this year)
Ending stocks: 29 MMT (down from 55.2 MMT)
Average farm price: $2.25-$2.65 per bushel ($88 – $104 per MT). Farm prices are up from last year’s averages of $76-$80 per MT.
Proexporter Network, an analyst company has predicted corn production of 10717 million bushels (272 MMT) in 2006-07 of which 9495 million bushels (241 MMT) are expected to be used in US. Ethanol production is expected to utilize 2166 million bushels (55 MMT) of corn (1665 million bushels – 42 MMT in dry mills and 501 million bushels – 12.72 MMT in wet mills), producing 5931 million gallons (22537 million liters) of ethanol in 2006-07. The Proexporter network has also predicted the US farm price to be average at $ 92.89 per MT.
The production of 272 MMT is expected from 71.427 million ha for land in 2006-07 with an average productivity of 3.81 tons/hac. The total area to be harvested is lower than last year’s 75.107 million hac, but the productivity is higher than last year’s 3.76 tons/ha.
The prices of corn in US came down and CBOT closed at $95.25 per MT for July delivery.
CUTC Conference in Dallas
The contingent from India attended the CUTC conference in Dallas, USA. The team attended the technical sessions on dry milling, wet milling which were aimed at providing information to the participants on increasing efficiency of production at their starch mills.
The team also visiting an ethanol plant, crushing 1400 tons of corn per day. The ethanol plant Big River Resources, is a co-operative and has plans to double the capacity of the plant within next 8 months. There are currently 100 ethanol plants in US and about 40 more will be coming in production in next 18 months, thus limiting the dependence of US on foreign oil. Ethanol is probably one of the best way to harness solar energy into fuel though the corn plant.
The team also visited a barge facility, where speciality grains like High Oil Corn, High Extractable Starch, Non GM corn are handled. The facility also boasts of one of the largest natural storage areas which are being used by the company. Corn is stored in a 60 acre unused sand silica mine and the company can store 0.25 MMT of corn in this storage.
The team also visited a farmer growing corn and soya on 3000 acres of land. The farmer grows corn on 1500 acres of land and is expecting a production of 4.57 tons/acre. The production on soya is expected to be 1.36 tons/acre.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jun 10, 2006
The week’s highlights are:
• Corn futures are down 17.5 cents per bushel ($6.7 per MT) from last Friday’s close
• Corn and barley plantings are 100% complete
• 71 percent of the U.S. corn crop is in good-to-excellent condition
• Weather: rain is moving across the cornbelt this weekend which is expected to keep the crop on pace for a high yield potential.
• FOB Corn US Gulf 111.40 per MT
• Latest WASDE highlights:
Corn production: 268 Million Metric Tons (down from last year’s 282 MMT)
Corn exports: 54.6 Million Metric Tons (up from last year’s 52.7 MMT)
Ethanol use: 54.6 MMT (up from last year’s 40.6 MMT; equal to exports this year)
Ending stocks: 29 MMT (down from 55.2 MMT)
Average farm price: $2.25-$2.65 per bushel ($88 – $104 per MT). Farm prices are up from last year’s averages of $76-$80 per MT.
Proexporter Network, an analyst company has predicted corn production of 10717 million bushels (272 MMT) in 2006-07 of which 9495 million bushels (241 MMT) are expected to be used in US. Ethanol production is expected to utilize 2166 million bushels (55 MMT) of corn (1665 million bushels – 42 MMT in dry mills and 501 million bushels – 12.72 MMT in wet mills), producing 5931 million gallons (22537 million liters) of ethanol in 2006-07. The Proexporter network has also predicted the US farm price to be average at $ 92.89 per MT.
The production of 272 MMT is expected from 71.427 million ha for land in 2006-07 with an average productivity of 3.81 tons/hac. The total area to be harvested is lower than last year’s 75.107 million hac, but the productivity is higher than last year’s 3.76 tons/ha.
The prices of corn in US came down and CBOT closed at $95.25 per MT for July delivery.
CUTC Conference in Dallas
The contingent from India attended the CUTC conference in Dallas, USA. The team attended the technical sessions on dry milling, wet milling which were aimed at providing information to the participants on increasing efficiency of production at their starch mills.
The team also visiting an ethanol plant, crushing 1400 tons of corn per day. The ethanol plant Big River Resources, is a co-operative and has plans to double the capacity of the plant within next 8 months. There are currently 100 ethanol plants in US and about 40 more will be coming in production in next 18 months, thus limiting the dependence of US on foreign oil. Ethanol is probably one of the best way to harness solar energy into fuel though the corn plant.
The team also visited a barge facility, where speciality grains like High Oil Corn, High Extractable Starch, Non GM corn are handled. The facility also boasts of one of the largest natural storage areas which are being used by the company. Corn is stored in a 60 acre unused sand silica mine and the company can store 0.25 MMT of corn in this storage.
The team also visited a farmer growing corn and soya on 3000 acres of land. The farmer grows corn on 1500 acres of land and is expecting a production of 4.57 tons/acre. The production on soya is expected to be 1.36 tons/acre.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jun 10, 2006
Saturday, June 03, 2006
Commodity prices Stable; Indian Participation at CUTC; New Biotech Crops in the offing in India
Commodity prices Stable
Commodity prices this week remained stable at last weeks values, though the rupee slid down from Rs.46 to Rs.43 against the US Dollar.
Corn price this week was slightly higher that last week by Rs.34 per ton and ended at Rs.5961 per MT, an increase of 0.57%. The prices are lower than last year’s price by Rs.244 per MT, almost 4%. This is mainly because of the lower demand from poultry sector for the time being. This demand is most likely to pick up as the placements get normal.
Pearl Millet prices were lower than last week by Rs.50 per MT at Rs.6282 per MT (0.78% loss), but the prices are still higher than last years prices by Rs.261 per MT, an increase of 4.33%.
Sorghum prices though this week slid down by Rs.954 per MT, losing 10.84%, ender at Rs.7855 per MT, the prices are still higher than last year’s prices by Rs.138 per MT (1.78%).
Barley prices slid this week by a record 20% (Rs.1859 per MT) ending at Rs.7378 per MT after a long time, but the prices are still higher than last year’s prices by 20%. Last year the prices were Rs.6116 per MT. Is may not be possible to reach the same level and the prices may remain higher.
Corn prices in US were $102 per Mt at CBOT, for July delivery, an increase of about $2 over last week's close ($100 per MT). Even at this price and with USD cheaper, it might ust be feasible to import corn in India, if the duty os removed. This will certainly help the end user sectors (like poultry) to come back as it has already suffered a loss in the hands of Avian Influenza.
Most of the country was lashed with rains this week, Kerala, Maharashtra, Parts of Haryana, Delhi and Punjab. This might help increasing the moisture levels, but the major concern will still be the rainfall in July and August, when the rains are much needed.
Indian Participation at CUTC
The National Corn Growers Association and U S Grains Council are organizing 5th Corn Utilization and Technology Conference in Dallas, Texas from June 05 – 07, 2006. The Indian team from the Starch Sector will be participating in the deliberations which are mainly on the issues of wet and dry milling and better yields, bio-tech and new traits.
After the event the team will be visiting ethanol plant, barge facility, a elevator in the countryside and also a corn farm, to see the system of operation and trade in US.
The national Corn Growers Association’s World of Corn for 2006 is out and can be found at the following link.
http://ncga.com/WorldOfCorn/main/WorldOfCorn2006.pdf
The World of Corn has all the information regarding corn production is US and its states, usage, exports. The information on various use of corn and its co-products can also be found in the book.
New Biotech Crops in the offing in India
The Genetic Engineering Approval Committee (GEAC) is likely to approve large scale field trials of GM Mustard and GM Potato, which have already undergone the field trails under controlled conditions. Another crop which is ready for the nod is BT Brinjal which might be cleared for trials in this Khariff Season.
With the three crops in the pipeline which would get approval for commercial sale in another 2 years if all goes well, the farmers will benefit by growing Bt Brinjal as it will reduce pesticide use and reduce the pests. Even the consumers will benefit as they would get a vegetable with less pesticide.
The potato will contact more protein while the mustard variety contains more oil and will help the farmers and oil sector (farmers will be able to sell mustard as a better price) and the oil sector will be able to get more oil. India is a oil deficient country and though it is a small step, it will certainly help part of the Indian population.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jun 03, 2006
Commodity prices this week remained stable at last weeks values, though the rupee slid down from Rs.46 to Rs.43 against the US Dollar.
Corn price this week was slightly higher that last week by Rs.34 per ton and ended at Rs.5961 per MT, an increase of 0.57%. The prices are lower than last year’s price by Rs.244 per MT, almost 4%. This is mainly because of the lower demand from poultry sector for the time being. This demand is most likely to pick up as the placements get normal.
Pearl Millet prices were lower than last week by Rs.50 per MT at Rs.6282 per MT (0.78% loss), but the prices are still higher than last years prices by Rs.261 per MT, an increase of 4.33%.
Sorghum prices though this week slid down by Rs.954 per MT, losing 10.84%, ender at Rs.7855 per MT, the prices are still higher than last year’s prices by Rs.138 per MT (1.78%).
Barley prices slid this week by a record 20% (Rs.1859 per MT) ending at Rs.7378 per MT after a long time, but the prices are still higher than last year’s prices by 20%. Last year the prices were Rs.6116 per MT. Is may not be possible to reach the same level and the prices may remain higher.
Corn prices in US were $102 per Mt at CBOT, for July delivery, an increase of about $2 over last week's close ($100 per MT). Even at this price and with USD cheaper, it might ust be feasible to import corn in India, if the duty os removed. This will certainly help the end user sectors (like poultry) to come back as it has already suffered a loss in the hands of Avian Influenza.
Most of the country was lashed with rains this week, Kerala, Maharashtra, Parts of Haryana, Delhi and Punjab. This might help increasing the moisture levels, but the major concern will still be the rainfall in July and August, when the rains are much needed.
Indian Participation at CUTC
The National Corn Growers Association and U S Grains Council are organizing 5th Corn Utilization and Technology Conference in Dallas, Texas from June 05 – 07, 2006. The Indian team from the Starch Sector will be participating in the deliberations which are mainly on the issues of wet and dry milling and better yields, bio-tech and new traits.
After the event the team will be visiting ethanol plant, barge facility, a elevator in the countryside and also a corn farm, to see the system of operation and trade in US.
The national Corn Growers Association’s World of Corn for 2006 is out and can be found at the following link.
http://ncga.com/WorldOfCorn/main/WorldOfCorn2006.pdf
The World of Corn has all the information regarding corn production is US and its states, usage, exports. The information on various use of corn and its co-products can also be found in the book.
New Biotech Crops in the offing in India
The Genetic Engineering Approval Committee (GEAC) is likely to approve large scale field trials of GM Mustard and GM Potato, which have already undergone the field trails under controlled conditions. Another crop which is ready for the nod is BT Brinjal which might be cleared for trials in this Khariff Season.
With the three crops in the pipeline which would get approval for commercial sale in another 2 years if all goes well, the farmers will benefit by growing Bt Brinjal as it will reduce pesticide use and reduce the pests. Even the consumers will benefit as they would get a vegetable with less pesticide.
The potato will contact more protein while the mustard variety contains more oil and will help the farmers and oil sector (farmers will be able to sell mustard as a better price) and the oil sector will be able to get more oil. India is a oil deficient country and though it is a small step, it will certainly help part of the Indian population.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jun 03, 2006
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