Stable commodity prices
Corn prices remained stable this week at Rs.7200 per MT (loose) at the market yard. The prices were lower than last year by 2%. Even though the prices are lower at market yards, delivered prices are up due to increased packaging and delivery costs. Average price for Feb 2008 was Rs.7145 per MT, which is 3% lower than last year. The lower prices are due to the lower off take by the poultry sector.
SPOT prices across the markets were reported higher over last week. Davangere Rs.6889 per MT; Nizamabad Rs.7457 per MT; Nimbaheda Rs.8375 per MT; Karimnagar Rs.7325 per MT; Ratlam Rs.8300 per MT. Corn in future markets also rose, Mar 8135 per MT; April 8580 per MT; May 8900 per MT; Jun 9150 per MT.
Pearl Millet (Bajra) prices were up by 1% over last week to Rs.6800 levels, but the prices have remained lower than last week by 4% at the market yard. Against maize the prices are lower by 6% and on an average the prices will be lower in North India, where pearl Millet is being used in layer rations. Average prices of Pearl Millet in Feb was Rs.6615 per MT, about 2.6% lower than Feb 2007.
Sorghum (Jowar) prices were down by 3.4% over last week to Rs.9400 per MT, but prices were higher than last year’s prices this week by 3.8%. Against maize the prices were higher by 32%. Average Feb 2008 prices were Rs.9300 per MT against Rs.8900 per MT last year, higher by 4.5%.
Barley prices were up to Rs.10760 per MT, at the market yard, about 9% higher than last year. Prices are higher than last year by 29%. Average price for Feb 2008 was Rs.10314 per MT against Rs.8420 per MT in Feb 2007, about 22.5% higher than last year’s Feb value. SPOT prices at Jaipur was Rs.12485 per MT. Barley in the future markets was reported at levels close to 10500 per MT for April – Jul delivery.
Corn prices on CBOT were up over last week. Mar delivery closed at $ 214.94 per MT against $205.60 per MT last week. May delivery also closed higher at $219.04 per MT against $210.62 per MT last week.
Common man’s budget to boost consumption
India has registered a growth of over 8% for 12 successive quarters and the budget 2008/09 may well be the one to continue the growth at close to 9% in the coming year. Keeping inflation under check has been the mantra for the government and the finance minister has just done that in the budget announced on Feb 29, 2008.
Inflation for the week ended Feb 16, 2008 was 4.89%, a nine month high. The high rate of inflation is due to costly petroleum products and some food items. This is the fourth week in a row when inflation rate is more than four per cent and is nearing RBI tolerance level of 5 per cent for the current fiscal.
The income tax rate cut will certainly boost the economy and from the low to high will be able to provide anywhere between Rs.4000 – 44000 to every income tax payee. This will give more money in the hands of the consumers and will boost consumption. The reduction of Cenvat (Central Value Added Tax) will make things cheaper, thus making the rupee go further.
The removal of excise duty on refrigerating equipments, will help in lowering the cost of cold storage infrastructure, which is the need of the hour for the growing economy.
The commodity transaction tax (CTT) similar to that of securities transaction tax (STT) has been introduced to keep the speculators at bay from the commodities market. Apart from the 12% service tax, a new exchange levy of 6% and another Rs.17 for every Rs.100,000 will add to the cost of trading in commodities.
Bird flu update - vigil required
Though there are no new reports of bird flu in India, Bangladesh is in the grip of bird flu more severely than earlier thought.
The United Nations has praised the efforts and measures taken by Government of India to control the worst ever bird flu outbreak in India. It has also urged India to maintain vigil as there is virus in the area.
The intensive culling of backyard poultry has helped in stopping the spread of the disease. But intensive surveillance in high-risk areas is required as the possibility of new occurrences remains high in the belt. Though disinfection has been done, it should be continued as the virus can be re-introduced the report from UN said.
Some pointers to the poultry farmers
1. Keep poultry flock isolated from outside environments.
2. Prevent flocks from contacting wild birds and keep them away from water sources that might be contaminated by wild birds.
3. Allow only essential workers and vehicles to enter the farm and poultry houses.
4. Provide clean protective clothing, equipment, and disinfection facilities for workers.
5. Thoroughly clean and disinfect equipment and vehicles entering and leaving the farm. Include tires and undercarriage.
a. Use detergents and disinfectants (avian influenza viruses are sensitive to most).
b. Use disinfectants that are labelled as effective against influenza viruses.
c. Use heating and drying (which inactivate the viruses).
6. Do not borrow equipment or vehicles from other farms and do not lend yours.
7. Avoid visiting other poultry farms.
8. If you do visit another farm or a live-bird market, change footwear and clothing before contacting your own flock again.
9. Do not bring birds from slaughter channels (especially live-bird markets) back to the farm.
10. Don’t wait to report sick birds! Early detection of avian influenza is essential to prevent its spread.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Corn prices remained stable this week at Rs.7200 per MT (loose) at the market yard. The prices were lower than last year by 2%. Even though the prices are lower at market yards, delivered prices are up due to increased packaging and delivery costs. Average price for Feb 2008 was Rs.7145 per MT, which is 3% lower than last year. The lower prices are due to the lower off take by the poultry sector.
SPOT prices across the markets were reported higher over last week. Davangere Rs.6889 per MT; Nizamabad Rs.7457 per MT; Nimbaheda Rs.8375 per MT; Karimnagar Rs.7325 per MT; Ratlam Rs.8300 per MT. Corn in future markets also rose, Mar 8135 per MT; April 8580 per MT; May 8900 per MT; Jun 9150 per MT.
Pearl Millet (Bajra) prices were up by 1% over last week to Rs.6800 levels, but the prices have remained lower than last week by 4% at the market yard. Against maize the prices are lower by 6% and on an average the prices will be lower in North India, where pearl Millet is being used in layer rations. Average prices of Pearl Millet in Feb was Rs.6615 per MT, about 2.6% lower than Feb 2007.
Sorghum (Jowar) prices were down by 3.4% over last week to Rs.9400 per MT, but prices were higher than last year’s prices this week by 3.8%. Against maize the prices were higher by 32%. Average Feb 2008 prices were Rs.9300 per MT against Rs.8900 per MT last year, higher by 4.5%.
Barley prices were up to Rs.10760 per MT, at the market yard, about 9% higher than last year. Prices are higher than last year by 29%. Average price for Feb 2008 was Rs.10314 per MT against Rs.8420 per MT in Feb 2007, about 22.5% higher than last year’s Feb value. SPOT prices at Jaipur was Rs.12485 per MT. Barley in the future markets was reported at levels close to 10500 per MT for April – Jul delivery.
Corn prices on CBOT were up over last week. Mar delivery closed at $ 214.94 per MT against $205.60 per MT last week. May delivery also closed higher at $219.04 per MT against $210.62 per MT last week.
Common man’s budget to boost consumption
India has registered a growth of over 8% for 12 successive quarters and the budget 2008/09 may well be the one to continue the growth at close to 9% in the coming year. Keeping inflation under check has been the mantra for the government and the finance minister has just done that in the budget announced on Feb 29, 2008.
Inflation for the week ended Feb 16, 2008 was 4.89%, a nine month high. The high rate of inflation is due to costly petroleum products and some food items. This is the fourth week in a row when inflation rate is more than four per cent and is nearing RBI tolerance level of 5 per cent for the current fiscal.
The income tax rate cut will certainly boost the economy and from the low to high will be able to provide anywhere between Rs.4000 – 44000 to every income tax payee. This will give more money in the hands of the consumers and will boost consumption. The reduction of Cenvat (Central Value Added Tax) will make things cheaper, thus making the rupee go further.
The removal of excise duty on refrigerating equipments, will help in lowering the cost of cold storage infrastructure, which is the need of the hour for the growing economy.
The commodity transaction tax (CTT) similar to that of securities transaction tax (STT) has been introduced to keep the speculators at bay from the commodities market. Apart from the 12% service tax, a new exchange levy of 6% and another Rs.17 for every Rs.100,000 will add to the cost of trading in commodities.
Bird flu update - vigil required
Though there are no new reports of bird flu in India, Bangladesh is in the grip of bird flu more severely than earlier thought.
The United Nations has praised the efforts and measures taken by Government of India to control the worst ever bird flu outbreak in India. It has also urged India to maintain vigil as there is virus in the area.
The intensive culling of backyard poultry has helped in stopping the spread of the disease. But intensive surveillance in high-risk areas is required as the possibility of new occurrences remains high in the belt. Though disinfection has been done, it should be continued as the virus can be re-introduced the report from UN said.
Some pointers to the poultry farmers
1. Keep poultry flock isolated from outside environments.
2. Prevent flocks from contacting wild birds and keep them away from water sources that might be contaminated by wild birds.
3. Allow only essential workers and vehicles to enter the farm and poultry houses.
4. Provide clean protective clothing, equipment, and disinfection facilities for workers.
5. Thoroughly clean and disinfect equipment and vehicles entering and leaving the farm. Include tires and undercarriage.
a. Use detergents and disinfectants (avian influenza viruses are sensitive to most).
b. Use disinfectants that are labelled as effective against influenza viruses.
c. Use heating and drying (which inactivate the viruses).
6. Do not borrow equipment or vehicles from other farms and do not lend yours.
7. Avoid visiting other poultry farms.
8. If you do visit another farm or a live-bird market, change footwear and clothing before contacting your own flock again.
9. Do not bring birds from slaughter channels (especially live-bird markets) back to the farm.
10. Don’t wait to report sick birds! Early detection of avian influenza is essential to prevent its spread.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
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