The National Agricultural Cooperative Marketing Federation of India (Nafed) has procured less than 10% of its target of five lakh tonnes of onions for price stabilization but aims to meet the goal by offering competitive prices to farmers. As the Rabi-2024 onion harvest began, the government instructed Nafed and the National Cooperative Consumers' Federation (NCCF) to procure onions directly from farmers. Rabi onions, making up 72-75% of annual production, have a superior shelf life compared to Kharif onions, ensuring year-round availability.
Despite a surplus stock and export restrictions, rice inflation has remained in double digits since October 2022. The food ministry is conducting a comprehensive assessment to map the consumption and production of high-value non-basmati rice varieties like Sona Masuri and Ponni. This research aims to identify demand-supply gaps and production patterns.
In the first six months of the oil year 2023-24, India's edible oil imports fell by 11.65% to 70.69 lakh tonnes, compared to 80.02 lakh tonnes in the same period last year. However, April saw a 27.67% increase in imports with 13.04 lakh tonnes.
This year's wheat production is expected to exceed that of the last two years, with estimates ranging from 105 to 112.5 million tonnes. Despite this, farmers are withholding wheat from markets in anticipation of higher prices, affecting millers and traders.
With chana prices exceeding the Minimum Support Price (MSP), the government has directed cooperatives Nafed and NCCF to buy the crop from farmers in Madhya Pradesh, Rajasthan, and Maharashtra using market-driven prices under mechanisms like the Minimum Assured Procurement Price (MAPP).
Rice procurement in India for the 2023-24 season reached 47.03 million tonnes by April 30, a slight decrease of 6% compared to last year's 49.88 million tonnes. Despite a 38% reduction in West Bengal, the overall procurement is bolstered by a significant increase from the rabi crop in Telangana.
Turmeric futures are on the rise again due to lower production this year, leading to demand surpassing supplies. Traders and industry insiders report a surge in futures, with prices fluctuating between 18,500 and 19,500 per quintal.
Wheat procurement in India has accelerated, reducing the deficit from 25% a week ago to 8% as of April 30, with total procurement reaching 205.42 lakh tonnes compared to 222.89 lakh tonnes the previous year.
In the fiscal year 2023-24, the value of cashew exports hit a seven-year low of $339.21 million, down 4.8% from the previous year's $356.32 million.
Millet prices have surged due to strong demand, government initiatives, social media influence, and a slight drop in production. Inflation for ragi and related products hit 16.6% in March, nearly the highest in over six years. Ragi's production fell from 1.69 million tonnes in 2022-23 to 1.39 million tonnes in 2023-24, even as the government promoted millet consumption.
Ravi Gupta, Vice-Chairman of All India Sugar Trade Association (AISTA), believes there's no shortage of ethanol in India despite restrictions on sugarcane juice and B-heavy molasses. He suggests permitting 1 million tonnes of sugar exports this season, anticipating a surplus of over 7 mt.
The Spices Board has issued a stern warning to cardamom dealers, urging them not to purchase capsules from unauthorized traders.
Prolonged dry spells and higher than normal temperatures in India's main coffee regions, including Karnataka and Kerala, threaten the 2024-25 crop, particularly after insufficient pre-monsoon rainfall.
During FY24, India's oilmeals export surged by 13% in quantity and 35% in value, as per data from the Solvent Extractors' Association of India (SEA). India exported 48.85 lakh tonnes (lt) of oilmeals worth 15,370 crore in the financial year 2023-24, a significant increase from the previous year's 43.36 lt valued at 11,400 crore. BV Mehta, Executive Director of SEA, highlighted that this marks the highest export volume and value since 2013-14.
After facing a turbulent year in the last fiscal, the cotton yarn spinning industry is poised for relief in the current fiscal.
Despite incentives to boost domestic production, India's pulse imports soared to USD 3.74 billion in 2023-24, nearly doubling from the previous year's 24.5 lakh tonnes to over 45 lakh tonnes.
A surge in export demand has led to a notable increase in prices of orthodox teas at Kochi auctions, drawing active participation from buyers in North India. Traders attribute this rise to a shortage of tea in the North during winter holidays, prompting buyers to turn to southern sources, thereby driving up demand. In sale 15, the demand remained robust, with sales reaching 92 percent of the offered quantity of 174,778 kg.
India's robusta coffee industry is seeing historic highs, with prices hitting Rs 10,080 per 50 kg bag, marking a significant milestone since the establishment of coffee estates in the Western Ghats region in the 1860s. This surge is a boon for Indian coffee growers who heavily rely on robusta due to its cost-effectiveness.
The US has profited from India's restrictions on rice exports, causing rough rice futures prices on the Chicago Board of Trade (CBOT) to surge to $18.66 per cwt ($367.30/tonne) in February.
During the first six months of the 2023-24 oil year, India's soyameal exports surged by 14% to 13.47 lakh tonnes, compared to 11.79 lakh tonnes in the same period last year, driven by robust demand from Asian nations. The Soyabean Processors Association of India (SOPA) estimates total soyameal exports for the oil year to reach around 18 lakh tonnes.
Nafed's copra procurement from the open market has driven up coconut oil prices in Kerala and Tamil Nadu after a prolonged period. The initiative, initiated before the Lok Sabha polls, coupled with festive demand, is expected to sustain prices until government procurement concludes.
India's National Cooperative Export Ltd, backed by the nation's top cooperative organizations, is set to export 1,600 tonnes of white rice to Singapore after successful negotiations with the country's aggregator.
The government announced measures to tackle hoarding and price hikes in pulses, requiring traders, importers, millers, and stockholders to declare stocks starting April 15. Suspecting significant quantities of imported pulses are held in customs warehouses, the Department of Consumer Affairs initiated meetings to evaluate real-time stock positions.
Amidst a ban on onion exports, the Indian government has allowed shipments to the UAE, resulting in outrage among farmers and traders. They claim that while Indian farmers are paid a meager ₹12 to ₹15 per kilogram for onions destined for export, the same onions fetch over ₹120 per kilogram in UAE markets.
Rice procurement by the Food Corporation of India (FCI) has seen significant declines in Andhra Pradesh by 36% and Telangana by 28%. Overall, procurement has reached 45.44 million tonnes as of March 31, down 7.3% from the previous year's 49.01 million tonnes. However, Chhattisgarh exceeded expectations, raising concerns about the procurement process. With procurement ongoing in certain states until April and even June, the government aims to acquire an additional 4-5 million tonnes.
In preparation for the summer season and heightened demand during the election campaign, the Indian Government has increased the monthly sugar quota to 25 lakh tonnes (lt) for April, up from 23.5 lt in March and 22 lt in February. The government determines the monthly sugar allocation for domestic sales and distributes quotas to individual mills accordingly.
Current temperature increases are not posing a threat to India's wheat crop, particularly in key producing states like Punjab, Haryana, Uttar Pradesh, and Rajasthan, where harvesting is largely completed. Gyanendra Singh from IIWBR reassures that temperatures below 38°C pose no risk, and harvesting is expected to proceed smoothly.
Chana prices experienced a slight decrease in March compared to the previous month, attributed to various factors including the government's initiative to offer Bharat dal at ₹60 a kg, heightened imports of yellow peas, and increased market arrivals of the new chana crop.
Customs authorities are demanding duty differentials from domestic rice exporters for shipments made over the past 18 months, posing a significant threat to India's rice exports. This demand follows the imposition of a 20% export duty on white rice in September 2022 and parboiled rice in August 2023, aimed at stabilizing domestic prices before key elections in 2024.
Wheat stocks in the central pool have dwindled to a 16-year low of 7.73 million tonnes due to decreased procurement over the past two years and aggressive open market sales by the Food Corporation of India (FCI) this fiscal year. Sources indicate that stocks may dangerously hover near the buffer level of 7.46 million tonnes by April 1. The last time stocks were this low was in 2008 when they dropped to 5.8 million tonnes.
