Commodity prices dip
Maize prices declined to Rs.7400 - 7500 per MT levels at the market yard on an average in India, translating to a delivered price of Rs.8500 ($208) per MT at the max. The prices are about 1.5% lower than last week. There are no major buys at this point ans most of the end users are covered. But the prices are still higher than last year by 12.5%. At the start of the sowing season (July 2007), the prices were higher than last year by about 18%, while in June 2007, the prices were higher than June 2006 by 21%, which did stimulate the farmers to bring more area under maize in some parts of the country. As per the reports available from Ministry of Agriculture, 7.149 Million Hac of land is under under maize in 2007, against 6.776 Million Hac in 2006. Under normal circumstanses the land under maize is close to 6.4 Million hac. In 2006, as per the Department of Statistics, Ministry of Agriculture, Maize production was 14.98 MMT (11.43 MMT in Khariff - harvested in Oct & 3.55 MMT in Rabi - harvested in Feb/Mar). As the total land is higher by 5.55%, and there has been a better monsoon, the market is expecting a better crop, an additional 10%, which would mean close to 12.6 MMT in Khariff alone.
Pearl Millet (Bajra) prices also slid down on higher supplies in the markets Rajashtan, where the commodity was traded at Rs.6200 per MT. The avearge price is Rs.6600 per MT. The price is 7.6% lower than last year and also 11% lower than maize. The total area under Pearl Millet also gone up to 7.706 Millon Hac in 2007 against 7.270 Million hac in 2006, an increase of 6%. Under normal circumstances the land under Pearl Millet is about 9.17 Million hac.
Sorghum (Jowar) prices were up to Rs.9600 per MT at the market yard, adding 5% over last year. The prices are about 36% higher than last year and 30% higher than maize prices. Area under Sorghum has dropped to 3.156 Million Hac in 2007 from 3.356 Million Hac in 2006, a drop of 6%. Under nornal circumstances, the land under Sorghum is about 4.20 million hac. Lower land coverage is still goingto increase the prices further for the commodity.
Barley prices also moved up by 2.5% over last week, reaching Rs.7780 per MT. The prices are similar to last year prices.
Pearl Millet (Bajra) prices also slid down on higher supplies in the markets Rajashtan, where the commodity was traded at Rs.6200 per MT. The avearge price is Rs.6600 per MT. The price is 7.6% lower than last year and also 11% lower than maize. The total area under Pearl Millet also gone up to 7.706 Millon Hac in 2007 against 7.270 Million hac in 2006, an increase of 6%. Under normal circumstances the land under Pearl Millet is about 9.17 Million hac.
Sorghum (Jowar) prices were up to Rs.9600 per MT at the market yard, adding 5% over last year. The prices are about 36% higher than last year and 30% higher than maize prices. Area under Sorghum has dropped to 3.156 Million Hac in 2007 from 3.356 Million Hac in 2006, a drop of 6%. Under nornal circumstances, the land under Sorghum is about 4.20 million hac. Lower land coverage is still goingto increase the prices further for the commodity.
Barley prices also moved up by 2.5% over last week, reaching Rs.7780 per MT. The prices are similar to last year prices.
Prices of corn on CBOT dipped for Sept and Dec deliveries to $129.28 and $136.05 per MT.
GM food crop trials get a a nod in India
The Genetic Engineering Advisory Committee (GEAC) gave clearance for the large scale field trails for the first food crop, Bt Brinjal (Egg Plant). The trials will be held at Indian Institute of Vegetable Research, Varanasi. Untill recently only one GM crop, GM cotton is cleared for growing in India, but this being a commericial crop not intended as a direct food has found acceptance with the farmers all over the country.
Bt Brinjal is also expected to generate a similar acceptance, as the vegetable in grown in almost 0.5 million hac of land yileding 8.5 million tons of the vegetable. The farmers need to spray pesticides at least 2 times before each picking to kill the worms. The inclusion of the Bt gene will help reducing the number of spays, which will reduce the cost of production, will be beneficial for the farmers, environment as well as the consumers. The incorporation of the gene will provide inbuilt resistanceto the plant against the insects.
Though the trials are likley to start this year, the commercial crop may not be available untill late 2009.
Amit Sachdev
India Representative
U S Grains Council
E Mail: bluecross303@gmail.com
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