Epic Research Daily Agri Commodity Report Of 8 August 2018

The Uttar Pradesh Sugar Mills Association (UPSMA) has wrote a letter to the state government, reiterating an earlier plea for a financial rescue package. The Association has reiterated its request for Rs 40 a quintal incentive on cane crushed by private sector mills during the recently concluded 2017-18 crushing season. The millers say their paying capacity was impaired due to less return from the sale of ugar and byproducts, against a comparatively higher cost of production. As a result, banks are not giving them loans, given the huge payment liabilities and unsold stock. So, they are unable to do the necessary repair works in preparation for the next season.

The hike in the minimum support price (MSP) of Cotton for the kharif 2018 season was 2.5 times that of Soybean but farmers in key states appear to have migrated to the oilseed, finding it potentially more remunerative. On an all-India basis, the area under Cotton was 4% lower at 109.8 lakh hectares as on August 3 compared with what it was at the same time last year; Soybean acreage, on the other hand, was about 11% higher than last year at 109.5 lakh hectares.

In Madhya Pradesh prices of processed Dal are expected to come down in coming weeks owning to exemption of mandi tax on raw Pulses purchased from outstation for processing. Madhya Pradesh government has exempted Pulses from 2.2% mandi tax. Leading to drop in price of processed Dal by about Rs 1.5 per kg to Rs 2 per kg since the local mandi tax has been removed. The exemption is valid on all pulses- Tur, Urad, Moong, matar- except Chana. Processing units were running into losses due to such a high mandi tax. But the exemption will support the processing units and reduce the cost of operation. The exemption will save Dal mills that were going to shut down because of high rate of purchase and lack of price parity.

Economic News

Production of pulses, groundnut, cotton, coarse cereals and paddy can see a fall in yield across Gujarat, Bihar, Jharkhand, Maharashtra and Karnataka if rains don’t cover these region in the next few days, feel farmers, government officials and analysts. In Bihar, state government officials say paddy and maize production will see a reduction due to late rains. In Madhya Pradesh, farmers are worried about soyabean crop which is in the flowering stage. In Gujarat, cotton and groundnut farms have either got deficit rain or received a break in rainfall for a long period, say farmers. Parts of Karnataka, which is an important belt for pulses, oilseed and coarse cereals, is reeling under rain deficit which traders and analyst feel was worrisome. The total rain deficit for the monsoon season has widened to 10%. Agriculture ministry officials say rainfall distribution was never uniform and the dry spell in some region will not make any major impact on overall sowing or production. They say planting will be at its peak till August 20.

Over 1.11 crore farmers spread over 16 states and union territories have registered on e-NAM platform, which promotes better marketing opportunities for farmers to sell their produce online, Union Agriculture Minister Radha Mohan Singh said today. Singh said in the Lok Sabha that farmers wishing to join e-NAM platform need to register themselves on e-NAM portal and can sell their produce on e-NAM platform in any e-NAM mandi of their choice. "eNAM platform promotes better marketing opportunities for farmers to sell their produce through online, competitive and transparent price discovery system and online payment facility. "It also promotes prices commensurate with quality of produce. All these contribute towards better marketing efficiency and also better prices to farmers," he said during Question Hour. The minister said a total of 585 'mandis' have been integrated till March 31, 2018 on e-NAM platform.

Trading Recommendations

SELL CORIANDER AUG BELOW 4900 TARGET 4880/4860/4840 SL 4930
BUY TURMERIC AUG ABOVE 7260 TARGET 7290/7320/7350 SL 7220
BUY GUARGUM5 OCT ABOVE 9600 TARGET 9640/9680/9720 SL 9550

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