Last Updated : 10 August 2011 at 22:20 IST
MUMBAI (Commodity Online): Equities’ loss could be commodities’ gain! When funds erode in legion from equities, commodities seem to be gaining.
Take the case of gold:
Spot Gold prices hit a record high of $1,779.14/oz and were seen at $1,771.45 an ounce at 10:28 a.m. EDT; a gain of 1.6%. The commodity has gained 6% so far this week.
This is in sharp contrast to the slide in equity markets: S&P 500 index dipped 3.2% to touch 1,134.52 at 10:20 a.m. in New York, Wednesday. Meanwhile, The Stoxx Europe 600 Index plunged 3%.
Possibly, the money that has deserted equities is finding its way to commodities.
Selected-commodity rally expected
“Gold may be going up. But there is a psychological limit to it.” said Martin Patrick, formerly a Professor of Economics at Maharajas College in Kochi. “Once gold goes up beyond a point, people may start fearing it is too high a peak and seek other options.”
“As a result, Silver may gain…” he said. And, added that it could well breach the $50/oz way too ahead of October 2012.
“Corn is another possible contender…”he added, and said, “agricultural-commodities in general holds better scope when it comes to investments in a situation like this.”
India a beacon of hope vs. China
Martin Patrick termed India a beacon of hope in the light of market routs.
“Indian consumption is driven domestically. Unlike China, we consume a lot of what we produce and are not depended on exports, beyond a point.” he added.
Latest reports suggest that China’s July trade surplus has risen to $31.5bn on record exports.
“Despite the absence of FDI (Foreign Direct Investment) in various sectors, India achieved many things that China did through FDI.” he said.
“Still, China sports many a strength that India do not…” he quipped.
With the health of several global banks in question, and the fear of debt-crisis contaminating France, equity markets are in a bloodbath.
As published in: http://www.commodityonline.com/news/%E2%80%98Equity-rout-Fresh-rally-expected-in-silver-corn-41556-3-1.html
Showing posts with label News Items. Show all posts
Showing posts with label News Items. Show all posts
Thursday, August 11, 2011
Saturday, July 23, 2011
Consortium of Indian Farmers Associations demands FDI in agriculture, retail
Last Updated : 22 July 2011 at 13:25 IST
NEW DELHI (Commodity Online): Consortium of Indian Farmers Associations (CIFA) is for allowing FDI (Foreign Direct Investment) in agriculture and retail, according to its Secretary General Chengal Reddy.
Calling for additional research in private sector and allowing FDI in agri processing industries, storing and value addition segments, he said the move would bring competition in the agriculture sector.
“We want the agriculture sector to be liberalised. Also, government should procure grains from the open markets for PDS (Public Distribution System).” he demanded.
Currently, the Union Government procures grains for PDS for a price that it fixes evaluating various factors. This is much less than the market price.
“And if someone wants to fix a price, an autonomous body should be doing that”, he said. “This was recommended by M.S.Swaminathan.” he added.
“This autonomous body should factor in the expenses as met by farmers, including their household expenses and fix a price for produce.” He said.
Reddy was responding to questions pertaining to crop holidays declared by farmers in areas of Andhra Pradesh recently. The move has left about 3 lakh acres fallow that can dent production by around 10 lakh tons. The farmers are protesting their produce not receiving remunerative prices.
Minimum Support Price (MSP)
“MSP is a fraud”, Chengal Reddy snapped.
“This mechanism was floated in 1965; there is nothing like Minimum Support Price. Currently no free-trade in agriculture is allowed. There are too much of controls and restrictions. This should change”
He called for free competition (so that the farmers get their right price that would make MSP null and void).
Policy makers do not understand agriculture, he complained.
Exports
“The government should have allowed exports this January.” he lamented when asked if the government measure to allow exports were not helping farmers.
The India government had recently allowed Rice exports to the tune of 10 lakh tons.
“There is 80 million tons out there.” He said.
Also the government should have followed the recommendation by Commission for Agriculture Costs and Prices (CACP) in exports. CACP had recommended 3 million tons in grain exports.
As published in: http://www.commodityonline.com/news/Consortium-of-Indian-Farmers-Associations-demands-FDI-in-agriculture-retail-40965-3-1.html
NEW DELHI (Commodity Online): Consortium of Indian Farmers Associations (CIFA) is for allowing FDI (Foreign Direct Investment) in agriculture and retail, according to its Secretary General Chengal Reddy.
Calling for additional research in private sector and allowing FDI in agri processing industries, storing and value addition segments, he said the move would bring competition in the agriculture sector.
“We want the agriculture sector to be liberalised. Also, government should procure grains from the open markets for PDS (Public Distribution System).” he demanded.
Currently, the Union Government procures grains for PDS for a price that it fixes evaluating various factors. This is much less than the market price.
“And if someone wants to fix a price, an autonomous body should be doing that”, he said. “This was recommended by M.S.Swaminathan.” he added.
“This autonomous body should factor in the expenses as met by farmers, including their household expenses and fix a price for produce.” He said.
Reddy was responding to questions pertaining to crop holidays declared by farmers in areas of Andhra Pradesh recently. The move has left about 3 lakh acres fallow that can dent production by around 10 lakh tons. The farmers are protesting their produce not receiving remunerative prices.
Minimum Support Price (MSP)
“MSP is a fraud”, Chengal Reddy snapped.
“This mechanism was floated in 1965; there is nothing like Minimum Support Price. Currently no free-trade in agriculture is allowed. There are too much of controls and restrictions. This should change”
He called for free competition (so that the farmers get their right price that would make MSP null and void).
Policy makers do not understand agriculture, he complained.
Exports
“The government should have allowed exports this January.” he lamented when asked if the government measure to allow exports were not helping farmers.
The India government had recently allowed Rice exports to the tune of 10 lakh tons.
“There is 80 million tons out there.” He said.
Also the government should have followed the recommendation by Commission for Agriculture Costs and Prices (CACP) in exports. CACP had recommended 3 million tons in grain exports.
As published in: http://www.commodityonline.com/news/Consortium-of-Indian-Farmers-Associations-demands-FDI-in-agriculture-retail-40965-3-1.html
Wednesday, July 20, 2011
India spice exports at stake on EU aflatoxin scare
KOCHI(Commodity Online): Aflatoxin contamination in spices exported from India is an issue that can have serious repercussions for the exporting community and farmers. Spice containers, if ever rejected for the presence of aflatoxin can send shockwaves across the global commodity markets, given that India is a major exporter.
“The image of India as a genuine source of spices is at stake”, says Gulshan John, Managing Director of Harmony Spices.
“There are some spurious players in the market and close to 95% of past rejections of consignments was due to them.” he said.
“Now every second container of Spices exported from India is being tested for aflatoxin content. This has added to the export costs in the form of additional accruals in port fees and payment delays.”
The sent consignments being under the scanner, there would be delays experienced in the ports which entail extra costs. Also, unless various lab tests are completed to satisfaction, the payment from buyers would be kept in limbo.
“These issues can affect the competency of export players, though it will not make exports unviable.”, he added.
“There is also the question of clarity with regard to EU measures. The authorities till date have not given an answer if the aflatoxin norms are specific to India or applicable to all.”
Aflatoxin is among the most carcinogenic substances (substances that can create cancer) known. It sprouts on spices like chilli, turmeric, ginger and nutmeg and can be causal in rejection of exported spices. Aflatoxin generally develops when spices are not handled according to standard farming and manufacturing practices.
The Spices Board of India, along with World Spice Organisation has initiated awareness campaigns at nutmeg growing areas in India to battle the aflatoxin menace. The objective is to control aflatoxin contamination through farm practice improvements.
Background
An audit was carried out by European Commission Food and Veterinary Office from February 1 to 10, in India to assess the systems in place to control aflatoxin contamination in spices intended for export to the European Union (EU).
This audit was included in the FVO’s 2010 inspection programme due to the high volume of exports of this commodity to the EU and the increase in notifications via the Rapid Alert System for Food and Feed (RASFF) in 2010.
[The Rapid Alert System for Food and Feed (RASFF) was put in place to provide food and feed control authorities in Europe with an effective tool to exchange information about measures taken responding to serious risks detected in relation to food or feed. Countries in EU are also members of RASFF.]
The following spices were identified by RASFF with aflatoxin contamination: Capsicum spp (dried fruits thereof, whole or ground, including chillies, chilli powder, cayenne and paprika), nutmeg, ginger and turmeric.
The audit report said, “Implementation of good agricultural practices (GAP) and good manufacturing practices (GMP) on the premises of spice growers and spice processors is not sufficiently supervised by the CAs (Competent Authorities). Instead, the main focus of attention in India is on aflatoxin controls prior to export...”
The issue
“Nutmeg is widely used by manufacturers in food application and medicine as whole spices, oils and oleoresins, and is facing severe quality issues, and rejection at ports due to aflatoxin contamination. Aflatoxins have negative health effects, and reduce the marketability of the produce, particularly in international trade (due to stringent standards of permissible limits).” says the World Spice Organisation website.
“Now-a-days, given the issue, every second container of spices exported from India is being inspected by concerned authorities in Europe. This has affected Indian exports of Spices.” adds Jojan Malayil, CEO, Bafna Enterprises; a major spice industry player.
“Now it is the government labs in EU that are carrying out lab tests for aflatoxin” he said.
The EU generally follows stringent standards when it comes to aflatoxin contamination. The EU approved limit is 5ppb (parts per billion) of aflatoxin in a given sample while in US it is 20 ppb.
“So, there is a lack of harmonisation in standards.” he added.
But are there double standards, as well?
In case of nutmeg, the Indonesian government told the EU that it may not be possible to comply with the stringent EU demands.
“Finally, the EU gave in to Indonesian demands and decided to accept Indonesian standards! Now the same EU wants India to comply with European standards.”—Jojan Malayil pointed out the paradox.
Need to implement GAP and GMP
“There is no permanent solution for the aflatoxin issue...”, says Philip Kuruvila, Chairman World Spice Organisation.
One-size-fits-all may not work, he believes.
“Of course, prevention is better...The issue has to be addressed at the farm level....India should follow standards when it comes to producing spices. It may not be difficult to comply with EU standards. Then we can take up the issue with WTO and ask them for harmonisation in standards, globally.” added Philip Kuruvilla.
But standards are prone to change as the local laws are susceptible to fluctuations.
“The only way is to adopt Good Agricultural Practises and Good Manufacturing Practises.” says, J.Thomas, Director Research India Spices Board. The board has initiated a number of activities in this regard.
Further, there are players like 'Plant Lipids' who claim to have taken advantage of the situation prevailing. “We have been very vigilant. We could maintain the standards better than many other players. And that has given us some leverage” Says Mathew Attokaran, Director of the company.
“Genuine industry players are all geared up to meet the challenges posed by the norms.” says Gulshan John.
The EU on its part should encourage and educate buyers in their country to opt for products from genuine players, he added.
As published in: http://www.commodityonline.com/news/India-spice-exports-at-stake-on-EU-aflatoxin-scare-40781-3-1.html
“The image of India as a genuine source of spices is at stake”, says Gulshan John, Managing Director of Harmony Spices.
“There are some spurious players in the market and close to 95% of past rejections of consignments was due to them.” he said.
“Now every second container of Spices exported from India is being tested for aflatoxin content. This has added to the export costs in the form of additional accruals in port fees and payment delays.”
The sent consignments being under the scanner, there would be delays experienced in the ports which entail extra costs. Also, unless various lab tests are completed to satisfaction, the payment from buyers would be kept in limbo.
“These issues can affect the competency of export players, though it will not make exports unviable.”, he added.
“There is also the question of clarity with regard to EU measures. The authorities till date have not given an answer if the aflatoxin norms are specific to India or applicable to all.”
Aflatoxin is among the most carcinogenic substances (substances that can create cancer) known. It sprouts on spices like chilli, turmeric, ginger and nutmeg and can be causal in rejection of exported spices. Aflatoxin generally develops when spices are not handled according to standard farming and manufacturing practices.
The Spices Board of India, along with World Spice Organisation has initiated awareness campaigns at nutmeg growing areas in India to battle the aflatoxin menace. The objective is to control aflatoxin contamination through farm practice improvements.
Background
An audit was carried out by European Commission Food and Veterinary Office from February 1 to 10, in India to assess the systems in place to control aflatoxin contamination in spices intended for export to the European Union (EU).
This audit was included in the FVO’s 2010 inspection programme due to the high volume of exports of this commodity to the EU and the increase in notifications via the Rapid Alert System for Food and Feed (RASFF) in 2010.
[The Rapid Alert System for Food and Feed (RASFF) was put in place to provide food and feed control authorities in Europe with an effective tool to exchange information about measures taken responding to serious risks detected in relation to food or feed. Countries in EU are also members of RASFF.]
The following spices were identified by RASFF with aflatoxin contamination: Capsicum spp (dried fruits thereof, whole or ground, including chillies, chilli powder, cayenne and paprika), nutmeg, ginger and turmeric.
The audit report said, “Implementation of good agricultural practices (GAP) and good manufacturing practices (GMP) on the premises of spice growers and spice processors is not sufficiently supervised by the CAs (Competent Authorities). Instead, the main focus of attention in India is on aflatoxin controls prior to export...”
The issue
“Nutmeg is widely used by manufacturers in food application and medicine as whole spices, oils and oleoresins, and is facing severe quality issues, and rejection at ports due to aflatoxin contamination. Aflatoxins have negative health effects, and reduce the marketability of the produce, particularly in international trade (due to stringent standards of permissible limits).” says the World Spice Organisation website.
“Now-a-days, given the issue, every second container of spices exported from India is being inspected by concerned authorities in Europe. This has affected Indian exports of Spices.” adds Jojan Malayil, CEO, Bafna Enterprises; a major spice industry player.
“Now it is the government labs in EU that are carrying out lab tests for aflatoxin” he said.
The EU generally follows stringent standards when it comes to aflatoxin contamination. The EU approved limit is 5ppb (parts per billion) of aflatoxin in a given sample while in US it is 20 ppb.
“So, there is a lack of harmonisation in standards.” he added.
But are there double standards, as well?
In case of nutmeg, the Indonesian government told the EU that it may not be possible to comply with the stringent EU demands.
“Finally, the EU gave in to Indonesian demands and decided to accept Indonesian standards! Now the same EU wants India to comply with European standards.”—Jojan Malayil pointed out the paradox.
Need to implement GAP and GMP
“There is no permanent solution for the aflatoxin issue...”, says Philip Kuruvila, Chairman World Spice Organisation.
One-size-fits-all may not work, he believes.
“Of course, prevention is better...The issue has to be addressed at the farm level....India should follow standards when it comes to producing spices. It may not be difficult to comply with EU standards. Then we can take up the issue with WTO and ask them for harmonisation in standards, globally.” added Philip Kuruvilla.
But standards are prone to change as the local laws are susceptible to fluctuations.
“The only way is to adopt Good Agricultural Practises and Good Manufacturing Practises.” says, J.Thomas, Director Research India Spices Board. The board has initiated a number of activities in this regard.
Further, there are players like 'Plant Lipids' who claim to have taken advantage of the situation prevailing. “We have been very vigilant. We could maintain the standards better than many other players. And that has given us some leverage” Says Mathew Attokaran, Director of the company.
“Genuine industry players are all geared up to meet the challenges posed by the norms.” says Gulshan John.
The EU on its part should encourage and educate buyers in their country to opt for products from genuine players, he added.
As published in: http://www.commodityonline.com/news/India-spice-exports-at-stake-on-EU-aflatoxin-scare-40781-3-1.html
Tuesday, July 12, 2011
Will India turn into a cotton importer?
Last Updated : 12 July 2011 at 14:25 IST
NEW DELHI (Commodity Online): India may turn into an importer of Cotton if the domestic textile industry grows by 15-20% a year until the current capacity doubles, says B.K.Mishra, Managing Director Cotton Corporation of India. However he ruled out the possibility of the same happening over a year or two.
Mechanisation of farm holdings in India and employing machines to pick cotton is not feasible as most holdings are small and owned by individual farmers who may not have the sufficient financial muscle to bring in machines, added Mishra. R.C. Jain, Chairman and Managing Director of TT Limited--an integrated textile company--concurs Mishra’s view, but disagrees that India may turn into an importer.
Textiles also include polyesters and there is a shift from cotton to polyesters by customers, R.C. Jain says.
“Besides, cotton acreage and productivity is also increasing.” he argues.
As per the Ministry of Agriculture, cotton has been sown on 21.65 lakh hectares of land as on June 17 as compared to 15.42 lakh hectares last year.
But cotton supply scenario in India is already constrained.
Cotton Advisory Board expects the closing stock to be 27.5 lakh bales by the end of current season which will last only for a little over a month given the average monthly consumption of 22 lakh bales by textile mills in India. Cotton year runs from October to September in India with arrivals beginning only in January.
Cotton Corporation of India (CCI) reported 30.2 million bales of cotton arrival as of June 19th, 2011 amounting to mere 4% increase over the last year.
For 2009-10, India’s cotton consumption stood at 230 lakh bales which increased to 258 lakh bales in 2010-11.
“The domestic textile industry is one of the largest industries in the country and has witnessed a phenomenal growth in the last two decades in terms of installed spindlage and yarn production. The significant features of this growth include installation of open-end rotors and setting up of export-oriented units. The mushroom growth of spinning industry and its modernization has led to sustained growth in cotton consumption specially during the years when country harvested good crop production.” says Cotton Corporation of India website.
After achieving a sustained growth in cotton consumption during Xth Plan period, domestic cotton consumption in last few years barring 2008-09 has been increasing steadily.
As published in: http://www.commodityonline.com/news/Will-India-turn-into-a-cotton-importer-40690-3-1.html
NEW DELHI (Commodity Online): India may turn into an importer of Cotton if the domestic textile industry grows by 15-20% a year until the current capacity doubles, says B.K.Mishra, Managing Director Cotton Corporation of India. However he ruled out the possibility of the same happening over a year or two.
Mechanisation of farm holdings in India and employing machines to pick cotton is not feasible as most holdings are small and owned by individual farmers who may not have the sufficient financial muscle to bring in machines, added Mishra. R.C. Jain, Chairman and Managing Director of TT Limited--an integrated textile company--concurs Mishra’s view, but disagrees that India may turn into an importer.
Textiles also include polyesters and there is a shift from cotton to polyesters by customers, R.C. Jain says.
“Besides, cotton acreage and productivity is also increasing.” he argues.
As per the Ministry of Agriculture, cotton has been sown on 21.65 lakh hectares of land as on June 17 as compared to 15.42 lakh hectares last year.
But cotton supply scenario in India is already constrained.
Cotton Advisory Board expects the closing stock to be 27.5 lakh bales by the end of current season which will last only for a little over a month given the average monthly consumption of 22 lakh bales by textile mills in India. Cotton year runs from October to September in India with arrivals beginning only in January.
Cotton Corporation of India (CCI) reported 30.2 million bales of cotton arrival as of June 19th, 2011 amounting to mere 4% increase over the last year.
For 2009-10, India’s cotton consumption stood at 230 lakh bales which increased to 258 lakh bales in 2010-11.
“The domestic textile industry is one of the largest industries in the country and has witnessed a phenomenal growth in the last two decades in terms of installed spindlage and yarn production. The significant features of this growth include installation of open-end rotors and setting up of export-oriented units. The mushroom growth of spinning industry and its modernization has led to sustained growth in cotton consumption specially during the years when country harvested good crop production.” says Cotton Corporation of India website.
After achieving a sustained growth in cotton consumption during Xth Plan period, domestic cotton consumption in last few years barring 2008-09 has been increasing steadily.
As published in: http://www.commodityonline.com/news/Will-India-turn-into-a-cotton-importer-40690-3-1.html
IFC, Jain Irrigation join hands for SAFAL in India; credit for irrigation
Last Updated : 12 July 2011 at 16:20 IST
MUMBAI(Commodity Online): Jain Irrigation and IFC (International Finance Corporation) has joined hands in floating Sustainable Agro-Commercial Finance Limited (SAFAL) that would be engaged in providing financing to farmers in rural India for agri productivity tools such as micro drip irrigation systems and other products.
“It is, perhaps, the first NBFC in the private sector space in India dedicated to extending finance solely to farmers for enhancing productivity and prosperity.” said an IFC spokesperson.
The company would operate through the existing distribution channel of over 2500 Dealers of Jain irrigation Systems Limited to a large extent but would also develop its independent distribution channel.
In India, farm credit flow has registered a quantum jump during 2010-11 with actual disbursements rising 13.74% against the target set for the year. Credit institutions disbursed Rs. 4,26,531 crore during the year against the target of Rs.3,75,000 crore. So how would the scheme really work out as surplus credit is already out there?
“The target based evaluation and conclusion is misleading to arrive at the actual financing need and the “liquidity” in the farm sector. Else other unorganized financers like the money lenders and Aardhias would not flourish.”—the IFC spokesperson said.
“The credit flow to small and marginal farmers in many parts of the country remains limited and restricted mostly for crop loans. The company would focus on relatively small farmers and on financing for agri-productivity tools where it feels there is a need and adequate demand.”, the spokesperson added.
The project is expected to benefit more than 600,000 farmers with limited access to credit, in the next five years and the company has developed its loan eligibility criteria based on experience of the parent company, market study and other market comparables.
“The scheme will be focused on the small farmer having holdings between 1 acre to 5 acres.”, the spokesperson confirmed.
As the financing will support increased usage of micro drip irrigation systems, water harvesting and storage solutions for small farmers are expected to get a boost.
The credit may not be restricted to irrigation purposes alone:
“The company will evaluate the areas and products where financing will be provided based on market needs and demand for e.g. farm mechanization, contract farming etc. It is expected that the company will eventually service various financing needs aimed at enhancing the productivity of Indian farmers.” the spokesperson said.
IFC will hold a minority stake in the company with the majority being held by Jain irrigation systems limited (JISL) including sponsors of JISL and trusts related to the sponsors.
IFC will invest $2.7 million (equivalent to 120 million Indian rupees) in equity in the company.'
As published in: http://www.commodityonline.com/news/Will-India-turn-into-a-cotton-importer-40690-3-1.html
MUMBAI(Commodity Online): Jain Irrigation and IFC (International Finance Corporation) has joined hands in floating Sustainable Agro-Commercial Finance Limited (SAFAL) that would be engaged in providing financing to farmers in rural India for agri productivity tools such as micro drip irrigation systems and other products.
“It is, perhaps, the first NBFC in the private sector space in India dedicated to extending finance solely to farmers for enhancing productivity and prosperity.” said an IFC spokesperson.
The company would operate through the existing distribution channel of over 2500 Dealers of Jain irrigation Systems Limited to a large extent but would also develop its independent distribution channel.
In India, farm credit flow has registered a quantum jump during 2010-11 with actual disbursements rising 13.74% against the target set for the year. Credit institutions disbursed Rs. 4,26,531 crore during the year against the target of Rs.3,75,000 crore. So how would the scheme really work out as surplus credit is already out there?
“The target based evaluation and conclusion is misleading to arrive at the actual financing need and the “liquidity” in the farm sector. Else other unorganized financers like the money lenders and Aardhias would not flourish.”—the IFC spokesperson said.
“The credit flow to small and marginal farmers in many parts of the country remains limited and restricted mostly for crop loans. The company would focus on relatively small farmers and on financing for agri-productivity tools where it feels there is a need and adequate demand.”, the spokesperson added.
The project is expected to benefit more than 600,000 farmers with limited access to credit, in the next five years and the company has developed its loan eligibility criteria based on experience of the parent company, market study and other market comparables.
“The scheme will be focused on the small farmer having holdings between 1 acre to 5 acres.”, the spokesperson confirmed.
As the financing will support increased usage of micro drip irrigation systems, water harvesting and storage solutions for small farmers are expected to get a boost.
The credit may not be restricted to irrigation purposes alone:
“The company will evaluate the areas and products where financing will be provided based on market needs and demand for e.g. farm mechanization, contract farming etc. It is expected that the company will eventually service various financing needs aimed at enhancing the productivity of Indian farmers.” the spokesperson said.
IFC will hold a minority stake in the company with the majority being held by Jain irrigation systems limited (JISL) including sponsors of JISL and trusts related to the sponsors.
IFC will invest $2.7 million (equivalent to 120 million Indian rupees) in equity in the company.'
As published in: http://www.commodityonline.com/news/Will-India-turn-into-a-cotton-importer-40690-3-1.html
Thursday, July 7, 2011
Sugar decontrol: Will it happen this time?
Last Updated : 06 July 2011 at 16:20 IST
“We are bleeding...not ticking....”said Vijay.S.Banka, whole time director of Dwarikesh Sugar Industries Limited.
He was responding to the question: ‘What keeps sugar mills ticking in the era of license raj sort of controls?’
“The industry’s CAGR (Compound Annual Growth Rate) is the lowest among all sectors...” he said.” So, it would be wrong to say that we are ticking. We are surviving...”
Concurs S.K.Agarwal, Company Secretary, Balrampur Chini.
“Sometimes we are a loss making industry...since we (Balrampur Chini) have diversified into power and distillery business, we are able to sustain.” He added.
Sugar in India is a sour topic! At least for the mills and farmers...
The commodity is the most controlled in India and is a relic of the license raj. The release mechanism and levy obligation is exercised by the government to control sugar. In the open market, sugar is being sold subject to the directives from the Directorate of sugar in the Union govt.
Release orders are issued every month and the mills are given a sales quota. Mills cannot sell above this quota. “So, we cannot leverage the markets fully when sugar prices are up...” laments an industry official.
Worse, the mills get a penalty if they fail to sell the quota within the stipulated time.
Another aspect is that of levy obligation.
The mills have to sell 10% of their output to the government at a price quoted below the market price. (Through the PDS, this sugar is supplied to families below the poverty line.)
Of course, given this unsustainable scenario, a delegation of industry players led by Maharashtra Chief Minister Ashok Chavan met the Prime Minister in this regard, recently. The delegation also demanded additional export quota for sugar.
The glimmer of hope came on July 4 when agriculture minister Sharad Pawar indicated that some pragmatic decision will soon be arrived at with regard to Sugar decontrol and all issues in this industry will be addressed in-depth.
Back in 1971-72, and in 1978-79, attempts to decontrol the industry was made only to be retracted later on.
So, will the government allow for the decontrol?
“Sugar is an essential commodity...and given its political aspects very difficult to predict...I don’t want to speculate...” said Pritam Kumar Patnaik of Kotak Commodities.
“It is a contentious issue...”he added. “Prices of sugar will not rise in the short-term, even if it gets de-controlled. But with export commitments coming up, in the long-term, the prices may rise.” he said.
“As a commodity player, I don’t see any negatives in allowing sugar decontrolling...” he added.
“The act of decontrol can bring about parity in national and international prices”, said C.P Krishnan, Head, Commodities, Geojit BNP Paribas.
“Such a move is always welcome...he continued.
Currently, some sugar mills are finding it difficult to raise capital trough bank credits. The Public Sector Banks are an exception in this regard. “But private banks are only fair-weather friends...” said another industry participant.
Sometimes higher sugar cane prices also plague the industry and lower cane prices often deter farmers from engaging in cultivating the same.
“In Brazil, cane prices are linked to price realisation...such a practise can be followed in India too...” said S.K. Agarwal.
“De-controlling of sugar will develop a free-market and would bring in competition. This would ultimately benefit the consumers...” Agarwal added.
In case of sugar, the State governments also have a say. It is the state government that decides on the State Advised Price for sugar.
“A concerted effort on the part of State and Centre is required to effectively implement the decontrol...” said an industry player who did not want to be named.
As published in: http://www.commodityonline.com/news/Sugar-decontrol-Will-it-happen-this-time-40563-3-1.html
“We are bleeding...not ticking....”said Vijay.S.Banka, whole time director of Dwarikesh Sugar Industries Limited.
He was responding to the question: ‘What keeps sugar mills ticking in the era of license raj sort of controls?’
“The industry’s CAGR (Compound Annual Growth Rate) is the lowest among all sectors...” he said.” So, it would be wrong to say that we are ticking. We are surviving...”
Concurs S.K.Agarwal, Company Secretary, Balrampur Chini.
“Sometimes we are a loss making industry...since we (Balrampur Chini) have diversified into power and distillery business, we are able to sustain.” He added.
Sugar in India is a sour topic! At least for the mills and farmers...
The commodity is the most controlled in India and is a relic of the license raj. The release mechanism and levy obligation is exercised by the government to control sugar. In the open market, sugar is being sold subject to the directives from the Directorate of sugar in the Union govt.
Release orders are issued every month and the mills are given a sales quota. Mills cannot sell above this quota. “So, we cannot leverage the markets fully when sugar prices are up...” laments an industry official.
Worse, the mills get a penalty if they fail to sell the quota within the stipulated time.
Another aspect is that of levy obligation.
The mills have to sell 10% of their output to the government at a price quoted below the market price. (Through the PDS, this sugar is supplied to families below the poverty line.)
Of course, given this unsustainable scenario, a delegation of industry players led by Maharashtra Chief Minister Ashok Chavan met the Prime Minister in this regard, recently. The delegation also demanded additional export quota for sugar.
The glimmer of hope came on July 4 when agriculture minister Sharad Pawar indicated that some pragmatic decision will soon be arrived at with regard to Sugar decontrol and all issues in this industry will be addressed in-depth.
Back in 1971-72, and in 1978-79, attempts to decontrol the industry was made only to be retracted later on.
So, will the government allow for the decontrol?
“Sugar is an essential commodity...and given its political aspects very difficult to predict...I don’t want to speculate...” said Pritam Kumar Patnaik of Kotak Commodities.
“It is a contentious issue...”he added. “Prices of sugar will not rise in the short-term, even if it gets de-controlled. But with export commitments coming up, in the long-term, the prices may rise.” he said.
“As a commodity player, I don’t see any negatives in allowing sugar decontrolling...” he added.
“The act of decontrol can bring about parity in national and international prices”, said C.P Krishnan, Head, Commodities, Geojit BNP Paribas.
“Such a move is always welcome...he continued.
Currently, some sugar mills are finding it difficult to raise capital trough bank credits. The Public Sector Banks are an exception in this regard. “But private banks are only fair-weather friends...” said another industry participant.
Sometimes higher sugar cane prices also plague the industry and lower cane prices often deter farmers from engaging in cultivating the same.
“In Brazil, cane prices are linked to price realisation...such a practise can be followed in India too...” said S.K. Agarwal.
“De-controlling of sugar will develop a free-market and would bring in competition. This would ultimately benefit the consumers...” Agarwal added.
In case of sugar, the State governments also have a say. It is the state government that decides on the State Advised Price for sugar.
“A concerted effort on the part of State and Centre is required to effectively implement the decontrol...” said an industry player who did not want to be named.
As published in: http://www.commodityonline.com/news/Sugar-decontrol-Will-it-happen-this-time-40563-3-1.html
Monday, July 4, 2011
India Food Security Act may define quantity of food to be distributed
Last Updated : 04 July 2011 at 13:00 IST
KOCHI (Commodity Online): The draft proposal of the Food Security Act will define the quantity of food grains to be distributed, said the Food Minister of India, Prof. KV Thomas.
“Accordingly, for the priority category (BPL: Below Poverty Line), 35 kilogram will be distributed per five-member family and for the APL (Above Poverty Line) category, 3 kilogram will be distributed per person. For the priority category, Wheat would be distributed for Rs 2 a kilogram and Rice would be distributed for Rs.3 a kilogram. For the APL category, 50% of Minimum Support Price will be charged.” He added.
“The proposal intends to cover 75% of the population.” he said.
The draft proposal of the Food Security Act was recently given the nod by the Prime Minister. Changes could still be effected into this draft, the Food Minister had said. The process is a dynamic one and the Food Security Act will continue to evolve.
The Food Security Act was proposed by the Sonia Gandhi led National Advisory Council and suggested 90% of population be brought under the cover. This has been revised to 75% now as C.Rangarajan-- Prime Minister's Economic Advisory Council Chairman—termed the NAC proposal as too ambitious. Rangarajan had proposed 41% of population be brought under the cover.
Even if the 75-per cent-proposal gets cabinet approval and introduced in the Parliament, it may be referred to a standing committee for further deliberation.
The government fears the proposal to bring 75% of population under cover would turn government into a mass procuring agency and would push up the prices in the open market and fuel inflation scourge.
As published in: http://www.commodityonline.com/news/India-Food-Security-Act-may-define-quantity-of-food-to-be-distributed-40487-3-1.html
KOCHI (Commodity Online): The draft proposal of the Food Security Act will define the quantity of food grains to be distributed, said the Food Minister of India, Prof. KV Thomas.
“Accordingly, for the priority category (BPL: Below Poverty Line), 35 kilogram will be distributed per five-member family and for the APL (Above Poverty Line) category, 3 kilogram will be distributed per person. For the priority category, Wheat would be distributed for Rs 2 a kilogram and Rice would be distributed for Rs.3 a kilogram. For the APL category, 50% of Minimum Support Price will be charged.” He added.
“The proposal intends to cover 75% of the population.” he said.
The draft proposal of the Food Security Act was recently given the nod by the Prime Minister. Changes could still be effected into this draft, the Food Minister had said. The process is a dynamic one and the Food Security Act will continue to evolve.
The Food Security Act was proposed by the Sonia Gandhi led National Advisory Council and suggested 90% of population be brought under the cover. This has been revised to 75% now as C.Rangarajan-- Prime Minister's Economic Advisory Council Chairman—termed the NAC proposal as too ambitious. Rangarajan had proposed 41% of population be brought under the cover.
Even if the 75-per cent-proposal gets cabinet approval and introduced in the Parliament, it may be referred to a standing committee for further deliberation.
The government fears the proposal to bring 75% of population under cover would turn government into a mass procuring agency and would push up the prices in the open market and fuel inflation scourge.
As published in: http://www.commodityonline.com/news/India-Food-Security-Act-may-define-quantity-of-food-to-be-distributed-40487-3-1.html
Saturday, July 2, 2011
Bio-pesticides may emerge as alternative to endosulfan
Last Updated : 01 July 2011 at 18:00 IST
THIRUVANANTHAPURAM (Commodity Online): Central Tuber Crops Research Institute in Thiruvananthapuram, Kerala, has successfully developed bio-pesticide and cattle fodder from tapioca leaves. This development holds the potential to bring down the use of chemical pesticides, eventually, and can also provide livestock with nutrient-rich fodder.
Dr.C.A.Jayaprakash and his research team from Crop Protection Division of the institute have also crossed a milestone by setting up a plant that yields the pesticide. On a unit basis, eight litres of bio-pesticides can be obtained from a kilogram of tapioca leaves.
“We have identified 2000 plant varieties that can yield bio-pesticides...”, said Jayaprakash brimming with energy.
“But extractability of many of them is an issue. So is the economics...”he clarified. Unlike tapioca leaves, that yields eight litres of pesticide from one kilogram of leaves; other plant leaves may not be good when it comes to extraction of pesticides.
“The pesticide developed is effective against borer pests—variety that bores holes in plants—and should be poured into the holes drilled by pests. Later the hole is sealed. Bio-fumigation occurs as a result, and the pests perish.”said Dr.Jayaprakash.
“But this variety of bio-pesticide cannot be sprayed...”he explained.
To serve the spraying purpose of bio-pesticides to kill pests, the research team is developing two new varieties: Shakti & Shreya. But further details regarding them were not revealed by Jayaprakash.
But he said that Shakti & Shreya is yet to be tested for its capacity to contain and eliminate pests that plague the cashew crops.”We cannot test it ourselves as our mandate allows us to carry out research only on tuber crops.” Jayaprakash said.
If such a move is carried-out effectively, one cannot rule out the possibility of getting an alternative to endosulfan.
“We are open to collaboration in this area...” he hinted.
Dr.Jayaprakash informed of the successful development of cattle fodder from tapioca leaves which have been made free of toxic content subsequent to pesticide extraction.
He pointed out that a combination of bio-pesticides and chemical pesticides would help in reducing the use of chemical-pesticide content.
As published in: http://www.commodityonline.com/news/Bio-pesticides-may-emerge-as-alternative-to-endosulfan-40453-3-1.html
THIRUVANANTHAPURAM (Commodity Online): Central Tuber Crops Research Institute in Thiruvananthapuram, Kerala, has successfully developed bio-pesticide and cattle fodder from tapioca leaves. This development holds the potential to bring down the use of chemical pesticides, eventually, and can also provide livestock with nutrient-rich fodder.
Dr.C.A.Jayaprakash and his research team from Crop Protection Division of the institute have also crossed a milestone by setting up a plant that yields the pesticide. On a unit basis, eight litres of bio-pesticides can be obtained from a kilogram of tapioca leaves.
“We have identified 2000 plant varieties that can yield bio-pesticides...”, said Jayaprakash brimming with energy.
“But extractability of many of them is an issue. So is the economics...”he clarified. Unlike tapioca leaves, that yields eight litres of pesticide from one kilogram of leaves; other plant leaves may not be good when it comes to extraction of pesticides.
“The pesticide developed is effective against borer pests—variety that bores holes in plants—and should be poured into the holes drilled by pests. Later the hole is sealed. Bio-fumigation occurs as a result, and the pests perish.”said Dr.Jayaprakash.
“But this variety of bio-pesticide cannot be sprayed...”he explained.
To serve the spraying purpose of bio-pesticides to kill pests, the research team is developing two new varieties: Shakti & Shreya. But further details regarding them were not revealed by Jayaprakash.
But he said that Shakti & Shreya is yet to be tested for its capacity to contain and eliminate pests that plague the cashew crops.”We cannot test it ourselves as our mandate allows us to carry out research only on tuber crops.” Jayaprakash said.
If such a move is carried-out effectively, one cannot rule out the possibility of getting an alternative to endosulfan.
“We are open to collaboration in this area...” he hinted.
Dr.Jayaprakash informed of the successful development of cattle fodder from tapioca leaves which have been made free of toxic content subsequent to pesticide extraction.
He pointed out that a combination of bio-pesticides and chemical pesticides would help in reducing the use of chemical-pesticide content.
As published in: http://www.commodityonline.com/news/Bio-pesticides-may-emerge-as-alternative-to-endosulfan-40453-3-1.html
‘India Monsoon: Ensuing 10 days critical for crops’
Last Updated : 01 July 2011 at 15:35 IST
HYDERABAD (Commodity Online): The ensuing 10 days are very critical for the Indian farming sector as the scope of diminished monsoons looms large over India.
“If rainfalls are not uniform, if it is erratic, over the Southern Penisnsula and Central India, sowing and tillage of crops can get adversely affected. Farmers are really worried. The 2009 situation may get repeated.” said GSLHV Prasada Rao Ph.D, Special Officer, Academy of Climate Change Education and Research (ACCER), Kerala Agriculture University.
In 2009, about 60 lakh hectares of Paddy acreage was affected on subdued monsoons and there was a 10-12% deficit in kharif output, said Prasada Rao from Andhra Pradesh.
“July is a very critical month for India.” he added.
Over the four broad geographical regions of the country, rainfall for the 2011 Southwest Monsoon Season is likely to be 97% of its LPA over North-West India, 95% of its LPA over North-East India, 95% of its LPA over Central India and 94% of its LPA over South Peninsula, all with a model error of ± 8 %.—said a June 21 press release from IMD.
On Wednesday, India’s food minister K.V.Thomas gave his consent to possible exports of grains from India. Now, the subject has been referred to Empowered Group of Ministers which will take a decision on the matter.
Successive bumper harvests and overflowing granaries have prompted the government to reconsider its policy of not allowing food grain exports in place since 2007.
As published in: http://www.commodityonline.com/news/%E2%80%98India-Monsoon-Ensuing-10-days-critical-for-crops-40444-3-1.html
HYDERABAD (Commodity Online): The ensuing 10 days are very critical for the Indian farming sector as the scope of diminished monsoons looms large over India.
“If rainfalls are not uniform, if it is erratic, over the Southern Penisnsula and Central India, sowing and tillage of crops can get adversely affected. Farmers are really worried. The 2009 situation may get repeated.” said GSLHV Prasada Rao Ph.D, Special Officer, Academy of Climate Change Education and Research (ACCER), Kerala Agriculture University.
In 2009, about 60 lakh hectares of Paddy acreage was affected on subdued monsoons and there was a 10-12% deficit in kharif output, said Prasada Rao from Andhra Pradesh.
“July is a very critical month for India.” he added.
Over the four broad geographical regions of the country, rainfall for the 2011 Southwest Monsoon Season is likely to be 97% of its LPA over North-West India, 95% of its LPA over North-East India, 95% of its LPA over Central India and 94% of its LPA over South Peninsula, all with a model error of ± 8 %.—said a June 21 press release from IMD.
On Wednesday, India’s food minister K.V.Thomas gave his consent to possible exports of grains from India. Now, the subject has been referred to Empowered Group of Ministers which will take a decision on the matter.
Successive bumper harvests and overflowing granaries have prompted the government to reconsider its policy of not allowing food grain exports in place since 2007.
As published in: http://www.commodityonline.com/news/%E2%80%98India-Monsoon-Ensuing-10-days-critical-for-crops-40444-3-1.html
‘SMX proposed black pepper futures contract may become global benchmark’
Last Updated : 01 July 2011 at 10:50 IST
SINGAPORE (Commodity Online): In a bid to cash-in on the boom in agri-sector, the Singapore Mercantile Exchange is planning to come up with contracts in black Pepper futures in the third quarter this year.
The contract idea was originally proposed in September 2010 and was possibly undergoing “exhaustive research and close consultation with key industry players” as its then CEO, Thomas J. McMahon had commented.SMX is backed by Financial Technologies (India) Limited which has successfully established 10 exchanges across India (MCX), Dubai, Singapore, Africa, Mauritius and Bahrain.
In a response to Commodity Online, SMX informed of the reasons behind the launching of the contract, how it is planning to bring liquidity and why the contract is expected to become a global benchmark.
1. What reasons have prompted SMX to come up with a contract in black pepper?
Black Pepper is a high value commodity. All the entities involved in its global supply and value chain are exposed to high price volatility due to seasonal, climatic and supply - demand factors. Today there is no global Black Pepper futures contract available which can be used by these international entities to mitigate their price risk (except domestic black pepper futures available to Indian players only). Nor there is any global price discovery platform of black pepper which can give directional inputs to the global physical market players.
The proximity of SMX in Singapore to the major producing regions of black pepper i.e. Vietnam, Indonesia, India and Malaysia encouraged the Exchange to look at this commodity for developing a Asia centric price discovery and price risk management futures platform. Also several major global black pepper physical traders have a strong presence in Singapore, which makes Singapore the ideal location for a black pepper futures contract.
2. How does SMX plans to bring liquidity into the contract?
SMX has planned out extensive awareness and educational programs in the major black Pepper producing and trading centers to attract the key industry players to hedge on its platform. The high price volatility of the commodity is expected to attract the interest of the directional traders, commercial trading firms and arbitrageurs.
The novation of each futures contract executed on the Exchange by the SMX-CC in Singapore, would give the market participants added confidence of effective mitigation of settlement and counter party risk. The state of the art trading system of the Exchange and the robust clearing, settlement and delivery mechanism under the apt regulatory oversight of the Monitory Authority of Singapore (MAS) is expected to attract participation from across the global, especially from the major importing centers viz. US, EU and Middle East.
3. Does SMX think that the contract will become a global benchmark? Why?
SMX Black Pepper contract is well poised to become a global benchmark as the Asia Pacific region is the largest underlying market of black pepper in the world, both in terms of production and exports. The contract is expected to attract a wide spectrum of black pepper trading firms across the globe as it would offer them a unique avenue for off-loading their price risk. In the absence of any global benchmark for black pepper prices, the SMX contract would be gradually used as a price barometer by the global physical players for their commercial transaction, which in turn would make it a global benchmark.
India market players positive
Analysts and industry participants in India seem to welcome the SMX move, according to certain media reports. India is a major producer of pepper and NCDEX (National Commodity& Derivatives Exchange) and NMCE (National Multi Commodity Exchange) currently provides for a platform for trade in pepper futures in India.
As published in: http://www.commodityonline.com/news/%E2%80%98SMX-proposed-black-pepper-futures-contract-may-become-global-benchmark-40434-3-1.html
SINGAPORE (Commodity Online): In a bid to cash-in on the boom in agri-sector, the Singapore Mercantile Exchange is planning to come up with contracts in black Pepper futures in the third quarter this year.
The contract idea was originally proposed in September 2010 and was possibly undergoing “exhaustive research and close consultation with key industry players” as its then CEO, Thomas J. McMahon had commented.SMX is backed by Financial Technologies (India) Limited which has successfully established 10 exchanges across India (MCX), Dubai, Singapore, Africa, Mauritius and Bahrain.
In a response to Commodity Online, SMX informed of the reasons behind the launching of the contract, how it is planning to bring liquidity and why the contract is expected to become a global benchmark.
1. What reasons have prompted SMX to come up with a contract in black pepper?
Black Pepper is a high value commodity. All the entities involved in its global supply and value chain are exposed to high price volatility due to seasonal, climatic and supply - demand factors. Today there is no global Black Pepper futures contract available which can be used by these international entities to mitigate their price risk (except domestic black pepper futures available to Indian players only). Nor there is any global price discovery platform of black pepper which can give directional inputs to the global physical market players.
The proximity of SMX in Singapore to the major producing regions of black pepper i.e. Vietnam, Indonesia, India and Malaysia encouraged the Exchange to look at this commodity for developing a Asia centric price discovery and price risk management futures platform. Also several major global black pepper physical traders have a strong presence in Singapore, which makes Singapore the ideal location for a black pepper futures contract.
2. How does SMX plans to bring liquidity into the contract?
SMX has planned out extensive awareness and educational programs in the major black Pepper producing and trading centers to attract the key industry players to hedge on its platform. The high price volatility of the commodity is expected to attract the interest of the directional traders, commercial trading firms and arbitrageurs.
The novation of each futures contract executed on the Exchange by the SMX-CC in Singapore, would give the market participants added confidence of effective mitigation of settlement and counter party risk. The state of the art trading system of the Exchange and the robust clearing, settlement and delivery mechanism under the apt regulatory oversight of the Monitory Authority of Singapore (MAS) is expected to attract participation from across the global, especially from the major importing centers viz. US, EU and Middle East.
3. Does SMX think that the contract will become a global benchmark? Why?
SMX Black Pepper contract is well poised to become a global benchmark as the Asia Pacific region is the largest underlying market of black pepper in the world, both in terms of production and exports. The contract is expected to attract a wide spectrum of black pepper trading firms across the globe as it would offer them a unique avenue for off-loading their price risk. In the absence of any global benchmark for black pepper prices, the SMX contract would be gradually used as a price barometer by the global physical players for their commercial transaction, which in turn would make it a global benchmark.
India market players positive
Analysts and industry participants in India seem to welcome the SMX move, according to certain media reports. India is a major producer of pepper and NCDEX (National Commodity& Derivatives Exchange) and NMCE (National Multi Commodity Exchange) currently provides for a platform for trade in pepper futures in India.
As published in: http://www.commodityonline.com/news/%E2%80%98SMX-proposed-black-pepper-futures-contract-may-become-global-benchmark-40434-3-1.html
Friday, June 24, 2011
No effective law to curb carcinogens in India gold jewellery
Last Updated : 24 June 2011 at 13:40 IST
KOCHI (Commodity Online): Amendments are awaited in Industries (Development and Regulation) Act and Bureau of Indian Standards (BIS) Act to effectively curb the use of carcinogens in manufacturing of gold ornaments in India.
But, with a legal amendment mired in the tussle between two Central Govt ministries in India, the retail consumers here stands the likelihood of ending up buying gold ornaments with iridium and ruthenium contents which are detrimental to health.
In what could turn out to be an issue of national importance in India, the High Court of Kerala has observed that gold ornaments sold in the State in south India is adulterated with carcinogens.
In a recent affidavit, it has been submitted in the High Court by the Bureau of Indian Standards (BIS) that gold jewellery sold in the state has carcinogenic contents in the form of iridium and ruthenium, freely added by ornament makers.
The agency, assigned with maintaining Standards in India expressed helplessness that unless an amendment in the form of Industries (Development and Regulation) Act has been made, the respective BIS Act cannot be amended. This makes it impossible the agency to intervene in the issue or take action against jewellers.
But, for the same amendment to be through, the tussle between India’s Commerce Ministry and Consumer Affairs Ministry stands as a road block. The Court however refused to comment regarding this.
The court expressed concern that the issue of adulterated gold being sold in the State has not received necessary attention from Centre and State Governments.
India is among the largest consumer of retail jewellery in the world and Kerala is a consumer pocket in this regard. The practise of adding platinum group metals to gold can prove to be hazardous to health, experts observe.
Back in 2009, N.Sankara Menon, a senior advocate had in a letter to the High Court alleged that the manufacturers of gold ornaments had been adulterating the same with iridium and ruthenium. The court has taken suo motto note of it and started engaging stake holders. The Bureau of Indian Standards was made a party to the case and was sought necessary clarification.
The agency filed an affidavit acknowledging that the carcinogens are being added freely by ornament manufacturers.
The High Court has made the ministries who are in loggerheads parties to the case.
As published in: http://www.commodityonline.com/news/No-effective-law-to-curb-carcinogens-in-India-gold-jewellery-40263-3-1.html
KOCHI (Commodity Online): Amendments are awaited in Industries (Development and Regulation) Act and Bureau of Indian Standards (BIS) Act to effectively curb the use of carcinogens in manufacturing of gold ornaments in India.
But, with a legal amendment mired in the tussle between two Central Govt ministries in India, the retail consumers here stands the likelihood of ending up buying gold ornaments with iridium and ruthenium contents which are detrimental to health.
In what could turn out to be an issue of national importance in India, the High Court of Kerala has observed that gold ornaments sold in the State in south India is adulterated with carcinogens.
In a recent affidavit, it has been submitted in the High Court by the Bureau of Indian Standards (BIS) that gold jewellery sold in the state has carcinogenic contents in the form of iridium and ruthenium, freely added by ornament makers.
The agency, assigned with maintaining Standards in India expressed helplessness that unless an amendment in the form of Industries (Development and Regulation) Act has been made, the respective BIS Act cannot be amended. This makes it impossible the agency to intervene in the issue or take action against jewellers.
But, for the same amendment to be through, the tussle between India’s Commerce Ministry and Consumer Affairs Ministry stands as a road block. The Court however refused to comment regarding this.
The court expressed concern that the issue of adulterated gold being sold in the State has not received necessary attention from Centre and State Governments.
India is among the largest consumer of retail jewellery in the world and Kerala is a consumer pocket in this regard. The practise of adding platinum group metals to gold can prove to be hazardous to health, experts observe.
Back in 2009, N.Sankara Menon, a senior advocate had in a letter to the High Court alleged that the manufacturers of gold ornaments had been adulterating the same with iridium and ruthenium. The court has taken suo motto note of it and started engaging stake holders. The Bureau of Indian Standards was made a party to the case and was sought necessary clarification.
The agency filed an affidavit acknowledging that the carcinogens are being added freely by ornament manufacturers.
The High Court has made the ministries who are in loggerheads parties to the case.
As published in: http://www.commodityonline.com/news/No-effective-law-to-curb-carcinogens-in-India-gold-jewellery-40263-3-1.html
Discontent mounts in Idukki as cardamom market crashes
Last Updated : 24 June 2011 at 18:10 IST
IDUKKI, KERALA(Commodity Online): Discontent among cardamom cultivators in Idukki district in Kerala is reaching its zenith as markets crashed for this globally traded commodity in recent months. The Spices Park facilities owned by India’s Spices Board in Idukki are regularly witnessing farmer protests, processions and traffic disruption.
Farmers have alleged that cardamom auction prices are being quoted low this year and Spices Board is not taking any initiatives to revive prices.
They have alleged irregularities in e-auctions--an electronic auction facility by which cardamom is being sold by the farmers to traders.
But all these allegations were denied by a Spices Board official in a recent news paper report.
On Thursday, cardamom arrivals in the auction centre at Idukki totalled 34660 kilograms which quoted a maximum price of Rs.971.50 and an average price of Rs.768.02. A year back, the arrival figures stood at 14854 kilograms of which 14592 kilograms was sold, entailing a maximum price of Rs.1700 and an average price of Rs.1493.07.
The Board has denied cardamom prices have declined sharply and termed the movements in prices as usual fluctuations.
According to Charles J. Kithu, Director Spices Board, an uptrend in the prices of cardamom is visible following Thursday’s trend. Charles added that all warehouse activities like clearing and sorting of cardamom have been proceeding without a halt in Idukki.
Regarding the issuance of loans against warehouse receipts, he informed that certain internal problems with the bank playing as a deterrent which has been addressed lately.
A meeting of stake holders has been convened for next week in the Chief Minister’s chamber in Trivandrum.
But what do the farmers want the government to do? When this question was posed to M.K. Scaria, President Cardamom Growers Association, a farmer community in Idukki, he had the following suggestions:
--The State government should submit project proposal and get a ‘Price Stabilisation Fund’ sanctioned for cardamom from the Centre. This should be Rs.250 crore fund. The Swaminathan Commission had proposed a fund as a part of the 2006 Idukki package for cardamom farmers.
--The government can also source cardamom from farmers and distribute it on a subsidised basis on festive occasions through the PDS (Public Distribution System). This can be implemented on a pan India basis.
“A similar plan was implemented in 2010 in Tamil Nadu and was one of the reasons in driving cardamom prices up last year.”, he concluded.
Regimon Njallani, a cardamom farmer in Idukki said, “if the present trend continues and the market fails to revive, cardamom cultivation will become unviable and it may be wiped out of the market of Idukki...the grading, processing auctioning and warehouse receipts facilities are denied for farmers.”
Cardamom is a major item in the export basket of India; and in Kerala alone, about 30,000 farmers are engaged in its cultivation.
On the MCX, cardamom July futures this week opened at Rs.819.90 and was seen trading at Rs.870 on Friday evening.
As published in: http://www.commodityonline.com/news/Discontent-mounts-in-Idukki-as-cardamom-market-crashes-40279-3-1.html
IDUKKI, KERALA(Commodity Online): Discontent among cardamom cultivators in Idukki district in Kerala is reaching its zenith as markets crashed for this globally traded commodity in recent months. The Spices Park facilities owned by India’s Spices Board in Idukki are regularly witnessing farmer protests, processions and traffic disruption.
Farmers have alleged that cardamom auction prices are being quoted low this year and Spices Board is not taking any initiatives to revive prices.
They have alleged irregularities in e-auctions--an electronic auction facility by which cardamom is being sold by the farmers to traders.
But all these allegations were denied by a Spices Board official in a recent news paper report.
On Thursday, cardamom arrivals in the auction centre at Idukki totalled 34660 kilograms which quoted a maximum price of Rs.971.50 and an average price of Rs.768.02. A year back, the arrival figures stood at 14854 kilograms of which 14592 kilograms was sold, entailing a maximum price of Rs.1700 and an average price of Rs.1493.07.
The Board has denied cardamom prices have declined sharply and termed the movements in prices as usual fluctuations.
According to Charles J. Kithu, Director Spices Board, an uptrend in the prices of cardamom is visible following Thursday’s trend. Charles added that all warehouse activities like clearing and sorting of cardamom have been proceeding without a halt in Idukki.
Regarding the issuance of loans against warehouse receipts, he informed that certain internal problems with the bank playing as a deterrent which has been addressed lately.
A meeting of stake holders has been convened for next week in the Chief Minister’s chamber in Trivandrum.
But what do the farmers want the government to do? When this question was posed to M.K. Scaria, President Cardamom Growers Association, a farmer community in Idukki, he had the following suggestions:
--The State government should submit project proposal and get a ‘Price Stabilisation Fund’ sanctioned for cardamom from the Centre. This should be Rs.250 crore fund. The Swaminathan Commission had proposed a fund as a part of the 2006 Idukki package for cardamom farmers.
--The government can also source cardamom from farmers and distribute it on a subsidised basis on festive occasions through the PDS (Public Distribution System). This can be implemented on a pan India basis.
“A similar plan was implemented in 2010 in Tamil Nadu and was one of the reasons in driving cardamom prices up last year.”, he concluded.
Regimon Njallani, a cardamom farmer in Idukki said, “if the present trend continues and the market fails to revive, cardamom cultivation will become unviable and it may be wiped out of the market of Idukki...the grading, processing auctioning and warehouse receipts facilities are denied for farmers.”
Cardamom is a major item in the export basket of India; and in Kerala alone, about 30,000 farmers are engaged in its cultivation.
On the MCX, cardamom July futures this week opened at Rs.819.90 and was seen trading at Rs.870 on Friday evening.
As published in: http://www.commodityonline.com/news/Discontent-mounts-in-Idukki-as-cardamom-market-crashes-40279-3-1.html
Thursday, June 23, 2011
FMC keeping close watch on India pepper futures
Last Updated : 23 June 2011 at 13:50 IST
KOCHI (Commodity Online): The continued volatility in India pepper futures despite the recent margin hikes have forced the market regulator to keep a close watch on the speculative activity in this hotly traded spice.
The imposition of 19% margin effected in various episodes has failed to curb speculative activity causing concern to a large section of investors.
Subsequent to margin impositions, the prices dipped for a while only to pick up later on.
FMC(Forward Markets Commission) is having the regulatory right to intervene in the pepper futures if it feels that excessive speculation is onboard. It can ask the exchanges to hike margins further if excessive trade detrimental to investor interests occurs.
When asked if it is time for intervention in the pepper futures, FMC Director V.C. Chaturvedi said,”We are keeping a close watch of the markets...if warranted we may intervene.”
Pepper futures have been ruling high for a while and black pepper futures on NCDEX touched the first upper circuit in the afternoon trading session on Wednesday. This was subsequent to witnessing high volatility in the early trading session for the day.
On Thursday, pepper November contract was the top gainer in the morning session on NCDEX at Rs.30326; a gain of 1.1%. The July contract came down later on to Rs.29730, a loss of 2.3%.
Pepper futures have been trading high and certain sources are suggestive of a dominant player buying around 4700 tons of pepper falling under May and June contracts. But there are other players who want pepper futures to turn bearish and NCDEX has become a battleground of top guns, certain sources informed.
“But it is only the market dynamics working out...” said Jojan Malayil, CEO of Bafna Enterprises, Kochi. “Markets are open...” he said.
According to the International Pepper Community, world pepper output this year will fall by about 6,500 tonnes against 2010 to 310,000 tonnes due to unfavorable weather conditions.
Supplies from India have been poor in spot because of almost stagnant production in the last two-three years. Unseasonal rain in October-December affected the yield of pepper vines and is likely to slash output this year.
During April-March 2010-11, total quantity of 18,850 MT of pepper valued Rs.38318.50 Lakhs ($84.13million) was exported as against 19,750 MT valued Rs.31392.50 lakhs of last year. The unit value of pepper has increased from Rs.158.95 per kg in 2009-10 to Rs.203.28 per kg during 2010-11.
As per the IPCs 2011 projection, India is expected to produce 48,000 tonnes, followed by Indonesia (37,000 tonnes), Brazil (35,000 tonnes), Malaysia (25,672 tonnes), China (23,300 tonnes), Sri Lanka (17,102 tonnes) and Thailand (9,750 tonnes).
As published in: http://www.commodityonline.com/news/FMC-keeping-close-watch-on-India-pepper-futures-40220-3-1.html
KOCHI (Commodity Online): The continued volatility in India pepper futures despite the recent margin hikes have forced the market regulator to keep a close watch on the speculative activity in this hotly traded spice.
The imposition of 19% margin effected in various episodes has failed to curb speculative activity causing concern to a large section of investors.
Subsequent to margin impositions, the prices dipped for a while only to pick up later on.
FMC(Forward Markets Commission) is having the regulatory right to intervene in the pepper futures if it feels that excessive speculation is onboard. It can ask the exchanges to hike margins further if excessive trade detrimental to investor interests occurs.
When asked if it is time for intervention in the pepper futures, FMC Director V.C. Chaturvedi said,”We are keeping a close watch of the markets...if warranted we may intervene.”
Pepper futures have been ruling high for a while and black pepper futures on NCDEX touched the first upper circuit in the afternoon trading session on Wednesday. This was subsequent to witnessing high volatility in the early trading session for the day.
On Thursday, pepper November contract was the top gainer in the morning session on NCDEX at Rs.30326; a gain of 1.1%. The July contract came down later on to Rs.29730, a loss of 2.3%.
Pepper futures have been trading high and certain sources are suggestive of a dominant player buying around 4700 tons of pepper falling under May and June contracts. But there are other players who want pepper futures to turn bearish and NCDEX has become a battleground of top guns, certain sources informed.
“But it is only the market dynamics working out...” said Jojan Malayil, CEO of Bafna Enterprises, Kochi. “Markets are open...” he said.
According to the International Pepper Community, world pepper output this year will fall by about 6,500 tonnes against 2010 to 310,000 tonnes due to unfavorable weather conditions.
Supplies from India have been poor in spot because of almost stagnant production in the last two-three years. Unseasonal rain in October-December affected the yield of pepper vines and is likely to slash output this year.
During April-March 2010-11, total quantity of 18,850 MT of pepper valued Rs.38318.50 Lakhs ($84.13million) was exported as against 19,750 MT valued Rs.31392.50 lakhs of last year. The unit value of pepper has increased from Rs.158.95 per kg in 2009-10 to Rs.203.28 per kg during 2010-11.
As per the IPCs 2011 projection, India is expected to produce 48,000 tonnes, followed by Indonesia (37,000 tonnes), Brazil (35,000 tonnes), Malaysia (25,672 tonnes), China (23,300 tonnes), Sri Lanka (17,102 tonnes) and Thailand (9,750 tonnes).
As published in: http://www.commodityonline.com/news/FMC-keeping-close-watch-on-India-pepper-futures-40220-3-1.html
Tuesday, June 21, 2011
Cardamom: Climate variability, not climate change responsible for higher yields
Time of publishing:20 June 2011 at 12:35 IST
KOCHI (Commodity Online): Cardamom Hill Reserve (CHR) in Kerala has been experiencing a burst in cardamom yield, which a research study in an international journal attributed to climate change.
However, ‘climate variability’ rather than climate change may be behind the yield increases, according to Prasada Rao, Ph.D, Special Officer; Academy of Climate Change Education and Research (ACCER), a venture of Kerala Agriculture University.
What is climate variability?
“Climate variability is short-term while climate change is long term. Climate change is referred to as any significant change in climatic parameters like temperature and rain fall in any given period with reference to long period averages: the thirty years between 1961 and 1990.”; said Prasada Rao.
“Climate variability is a short-term change; may be seasonal, may be annual... “. Short-term climatic changes that do not exceed 30 year average are referred to as climate variability.
Recently, The New Indian Express (June 17,2011) report cited a study as saying “climate change is helping to increase the yield of cardamom crops at Cardamom Hills in Idukki.”
“It is a catchy title...” Prasad Rao said referring to the story headline.
“When it comes to impact side, there are so many sectors impacted by the climate change. This is where the terminology is loosely employed...” Prasada Rao said.
Intergovernmental Panel on Climate Change (IPCC) considers the base period for climate change studies as spanning between 1961 and 1990: a thirty year term.
“Any deviation from this is considered to be climate change...” he clarified.
But for the change to be measured, the base year should be comparable to another period, which again should be thirty years, he said.
If that be the case, to measure the climate change, one has to take the period extending from 1991 to 2020. That means we are almost a decade away from measuring climate change.
(Climate change effect on crops can also be measured by effectively comparing two slices of 30-year-periods, which Prasad Rao carried out in case of coconuts.)
The media report on cardamom yields and climate change cited the research study by a group of scientists. It was carried out by analysing data that falls between 1990 and 2007. Since the research study in the report was carried out by analysing 17 year data, it actually speaks of climate variability and not climate change.
As published in: http://www.commodityonline.com/news/Cardamom-Climate-variability-not-climate-change-responsible-for-higher-yields-40085-3-1.html
KOCHI (Commodity Online): Cardamom Hill Reserve (CHR) in Kerala has been experiencing a burst in cardamom yield, which a research study in an international journal attributed to climate change.
However, ‘climate variability’ rather than climate change may be behind the yield increases, according to Prasada Rao, Ph.D, Special Officer; Academy of Climate Change Education and Research (ACCER), a venture of Kerala Agriculture University.
What is climate variability?
“Climate variability is short-term while climate change is long term. Climate change is referred to as any significant change in climatic parameters like temperature and rain fall in any given period with reference to long period averages: the thirty years between 1961 and 1990.”; said Prasada Rao.
“Climate variability is a short-term change; may be seasonal, may be annual... “. Short-term climatic changes that do not exceed 30 year average are referred to as climate variability.
Recently, The New Indian Express (June 17,2011) report cited a study as saying “climate change is helping to increase the yield of cardamom crops at Cardamom Hills in Idukki.”
“It is a catchy title...” Prasad Rao said referring to the story headline.
“When it comes to impact side, there are so many sectors impacted by the climate change. This is where the terminology is loosely employed...” Prasada Rao said.
Intergovernmental Panel on Climate Change (IPCC) considers the base period for climate change studies as spanning between 1961 and 1990: a thirty year term.
“Any deviation from this is considered to be climate change...” he clarified.
But for the change to be measured, the base year should be comparable to another period, which again should be thirty years, he said.
If that be the case, to measure the climate change, one has to take the period extending from 1991 to 2020. That means we are almost a decade away from measuring climate change.
(Climate change effect on crops can also be measured by effectively comparing two slices of 30-year-periods, which Prasad Rao carried out in case of coconuts.)
The media report on cardamom yields and climate change cited the research study by a group of scientists. It was carried out by analysing data that falls between 1990 and 2007. Since the research study in the report was carried out by analysing 17 year data, it actually speaks of climate variability and not climate change.
As published in: http://www.commodityonline.com/news/Cardamom-Climate-variability-not-climate-change-responsible-for-higher-yields-40085-3-1.html
CHR Cardamom higher yields not for good: J Thomas
Last Updated : 22 June 2011 at 19:00 IST
KOCHI, INDIA (Commodity Online): The reported yield growth in cardamom in Cardamom Hill Reserve (CHR) at Idukki in Kerala certainly doesn’t bode well for the eco-system in the region and cannot be attributed as a positive impact of climate change, according to J Thomas, Director Research at Spices Board India and Director of Indian Cardamom Research Institute (ICRI).
An international journal recently published a study stating that climate change had led to higher yields in cardamom based on a study of 17 year data. Responding to this report, Prasada Rao, a veteran climate expert of Kerala Agriculture University told Commodity Online that the phenomenon is attributable to climate variability rather than climate change.
Veteran agriculture scientist J. Thomas who holds a different view on cardamom phenomenon said, “Whatever happened, it never happened for good...”
“Increase in yields cannot be taken as a positive impact of climate change. It is because you have varieties that have started responding to sunlight. Cardamom is a forest crop. It is grown under shades. More than 50% shade is optimum...but with the newer varieties responding to sunlight etc. they respond better when shades are more.
“Temperature is never advantageous...”, he said.
“It is revolutionary as far as production is concerned. It is not revolutionary as far as the total eco system is concerned.
It is a genetic evolution that has happened and it is manmade.” he said.
He also spoke of the Njallani variety that began a revolution in cardamom output.
But with the Njallani coming into picture, it started changing the eco system.
“Prior to Njallani we did not have much of a pest problem. Now we have pests. We never used to have much of a chemical application. Now there is an orientation to chemicals...”
But this development—a popular variety influencing immediate eco system and cultivation practises—is not restricted to cardamom or for that matter Njallni, he said. This holds good for all crops; he added.
As published in: http://www.commodityonline.com/news/CHR-Cardamom-higher-yields-not-for-good-J-Thomas-40144-3-1.html
KOCHI, INDIA (Commodity Online): The reported yield growth in cardamom in Cardamom Hill Reserve (CHR) at Idukki in Kerala certainly doesn’t bode well for the eco-system in the region and cannot be attributed as a positive impact of climate change, according to J Thomas, Director Research at Spices Board India and Director of Indian Cardamom Research Institute (ICRI).
An international journal recently published a study stating that climate change had led to higher yields in cardamom based on a study of 17 year data. Responding to this report, Prasada Rao, a veteran climate expert of Kerala Agriculture University told Commodity Online that the phenomenon is attributable to climate variability rather than climate change.
Veteran agriculture scientist J. Thomas who holds a different view on cardamom phenomenon said, “Whatever happened, it never happened for good...”
“Increase in yields cannot be taken as a positive impact of climate change. It is because you have varieties that have started responding to sunlight. Cardamom is a forest crop. It is grown under shades. More than 50% shade is optimum...but with the newer varieties responding to sunlight etc. they respond better when shades are more.
“Temperature is never advantageous...”, he said.
“It is revolutionary as far as production is concerned. It is not revolutionary as far as the total eco system is concerned.
It is a genetic evolution that has happened and it is manmade.” he said.
He also spoke of the Njallani variety that began a revolution in cardamom output.
But with the Njallani coming into picture, it started changing the eco system.
“Prior to Njallani we did not have much of a pest problem. Now we have pests. We never used to have much of a chemical application. Now there is an orientation to chemicals...”
But this development—a popular variety influencing immediate eco system and cultivation practises—is not restricted to cardamom or for that matter Njallni, he said. This holds good for all crops; he added.
As published in: http://www.commodityonline.com/news/CHR-Cardamom-higher-yields-not-for-good-J-Thomas-40144-3-1.html
Spices Board- IISR undertakes gene mapping of cardamom
Time of publication: 21 June 2011 at 14:30 IST
KOCHI (Commodity Online): The Spices Board is currently carrying out gene mapping of cardamom with the IISR (Indian Institute of Spices Research), said Director Research of Spices Board, J. Thomas.
“It is a DNA finger printing of cardamom accessions (genetic variants).” he explained.
The Board has a gene pool in cardamom—germplasm—probably one of the largest in the world. Under the programme, morphological yield parameters are measured and monitored. This helps the scientists to identify markers for specific parameters which would be helpful in breeding and other activities.
It is learned that Spices Board is having 900 accessions of cardamom. But there would be duplicates in these accessions. Under the study, DNA markers (signs indicative of character traits) are used to identify and remove duplicates and develop core collections. When breeding is carried out, desirable traits are crossed with minimal time being spent on developing cardamom with new characters. This would otherwise entail 10 to 15 years, i.e. if natural methods of breeding are followed.
Another project is an Integrated Nutrient Management Programme carried out in collaboration with seven institutions including Rubber Board, Coffee Board, Kerala Forest Research Centre etc. Through the project, the quantity of chemical fertilisers is targeted to be brought down by using biological agents. A new extraction procedure for neem cake has also been discovered that has brought down chemical content in pesticides by 20% when it came to the case of chilli and pepper.
Also, Spices Board is currently having collaborative research activities with RRL (Regional Research Laboratoy), DBT (Department of Bio Technology), DST (Department of Science and Technology), IIT (Indian Institute of Technology), IISc (Indian Institute of Science) and CFTRI(Central Food Technology Research Institute).
It is having a climate change study carried out in collaboration with ISRO (Indian Space Research Organisation). The activity involves measuring the impact of climate change on crops and pests with weather parameters being studied by ISRO and ground level things coordinated by Spices Board.
Thomas admitted that retaining researchers is an issue for Spices Board. Given that spices are grown in remote areas, where infrastructure facilities like schools, hospitals etc. are lacking, researchers are currently provided special packages, so that attrition reigned in.
He added that given the complexity of spices value-chain, research activities require a holistic approach.
As published in: http://www.commodityonline.com/news/Spices-BoardIISR-undertakes-gene-mapping-of-cardamom-40143-3-1.html
KOCHI (Commodity Online): The Spices Board is currently carrying out gene mapping of cardamom with the IISR (Indian Institute of Spices Research), said Director Research of Spices Board, J. Thomas.
“It is a DNA finger printing of cardamom accessions (genetic variants).” he explained.
The Board has a gene pool in cardamom—germplasm—probably one of the largest in the world. Under the programme, morphological yield parameters are measured and monitored. This helps the scientists to identify markers for specific parameters which would be helpful in breeding and other activities.
It is learned that Spices Board is having 900 accessions of cardamom. But there would be duplicates in these accessions. Under the study, DNA markers (signs indicative of character traits) are used to identify and remove duplicates and develop core collections. When breeding is carried out, desirable traits are crossed with minimal time being spent on developing cardamom with new characters. This would otherwise entail 10 to 15 years, i.e. if natural methods of breeding are followed.
Another project is an Integrated Nutrient Management Programme carried out in collaboration with seven institutions including Rubber Board, Coffee Board, Kerala Forest Research Centre etc. Through the project, the quantity of chemical fertilisers is targeted to be brought down by using biological agents. A new extraction procedure for neem cake has also been discovered that has brought down chemical content in pesticides by 20% when it came to the case of chilli and pepper.
Also, Spices Board is currently having collaborative research activities with RRL (Regional Research Laboratoy), DBT (Department of Bio Technology), DST (Department of Science and Technology), IIT (Indian Institute of Technology), IISc (Indian Institute of Science) and CFTRI(Central Food Technology Research Institute).
It is having a climate change study carried out in collaboration with ISRO (Indian Space Research Organisation). The activity involves measuring the impact of climate change on crops and pests with weather parameters being studied by ISRO and ground level things coordinated by Spices Board.
Thomas admitted that retaining researchers is an issue for Spices Board. Given that spices are grown in remote areas, where infrastructure facilities like schools, hospitals etc. are lacking, researchers are currently provided special packages, so that attrition reigned in.
He added that given the complexity of spices value-chain, research activities require a holistic approach.
As published in: http://www.commodityonline.com/news/Spices-BoardIISR-undertakes-gene-mapping-of-cardamom-40143-3-1.html
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