Coconut oil prices are likely to rally further to record levels with supply of copra falling short, traders said. Oil prices are already on the higher side by almost 22% from the price recorded in January 2008 and traders see the market breaching the recent best of Rs 7,500 per quintal very soon.
Conversion into copra has almost stopped in Kerala due to rains and supply from Tamil Nadu is low, Talat Mehamod, a trader at the terminal market of Kochi told FE. “Farmers in Tamil Nadu are holding back some stocks in anticipation of better realisation, but the allover availability of copra has declined,” he added. Usually, price of coconut oil declines with start of production season in Kerala (February) and reaches the end of the trough during June as production peaks in Tamil Nadu and Karnataka.
While the Coconut Development Board harps on the consumption of tender coconut as the main reason for the declining availability of copra, traders point out that value addition has helped a lot. “Big North Indian companies are procuring coconut for conversion into coconut milk and desiccated coconut. The market for packed coconut milk is seen increasing rapidly,” Talat added. With other edible oils also on the boil, traders see scope for more substitution by the industrial users like soaps and detergent manufacturers.
Increasing price of palm oil in the global market also wards off competition by household consumers who switch usage depending on cost, board sources said, believing that inelastic demand for tender coconut due to its health benefits will help stabilise the coconut oil market.
Source: Financial Express
Friday, June 27, 2008
Thursday, June 26, 2008
India Expects Rise In Maize Yield
High yield hybrid seeds of maize find more potential in Indian soil as the farmers expect 15-20 percent increase in maize production in this khariff season.
S K Singh, President of Indian Maize Development Association said maize production in the country is expected to increase 15-20 percent to 18 million tonnes due to timely intervention of farmers by enhancing the acreage of the crop.
Farmers are sowing hybrid seeds and diversifying to Punjab, Uttar Pradesh and Bihar.
India is estimated to have produced 18.54 million tonnes of maize in 2007-08, out of which 14.82 million tonnes came from the Kharif season, which is the post-summer period when farmers in many parts of the country depend on monsoon rains.
Singh said farmers in Punjab, Bihar, Uttar Pradesh and Andhra Pradesh are shifting to maize cultivation from other coarse grains like jowar and bajra as it offers them more returns.
Though the average yield is two tonnes per hectare, the maize productivity in some parts is over three tonnes a hectare, he said, adding farmers in Karnataka and Haryana are fast adopting the hybrid seeds of maize.
Bihar has emerged as a major destination for growing maize where the yield has also been improving, he said, adding Himachal Pradesh and Uttarakhand also have the potential to grow the crop in their rain-fed areas.
Source: Commodity Online
S K Singh, President of Indian Maize Development Association said maize production in the country is expected to increase 15-20 percent to 18 million tonnes due to timely intervention of farmers by enhancing the acreage of the crop.
Farmers are sowing hybrid seeds and diversifying to Punjab, Uttar Pradesh and Bihar.
India is estimated to have produced 18.54 million tonnes of maize in 2007-08, out of which 14.82 million tonnes came from the Kharif season, which is the post-summer period when farmers in many parts of the country depend on monsoon rains.
Singh said farmers in Punjab, Bihar, Uttar Pradesh and Andhra Pradesh are shifting to maize cultivation from other coarse grains like jowar and bajra as it offers them more returns.
Though the average yield is two tonnes per hectare, the maize productivity in some parts is over three tonnes a hectare, he said, adding farmers in Karnataka and Haryana are fast adopting the hybrid seeds of maize.
Bihar has emerged as a major destination for growing maize where the yield has also been improving, he said, adding Himachal Pradesh and Uttarakhand also have the potential to grow the crop in their rain-fed areas.
Source: Commodity Online
Sri Lanka Tea Board Discourages Further Cultivation
Sri Lanka's tea board is not encouraging the expansion of tea cultivation in an effort to prevent over-supply from depressing prices and has warned the industry against being carried away by current high prices.
Sri Lanka Tea Board chairman Lalith Hettiarachchi said that although tea prices were now at high levels there was concern that the growth in consumption was not keeping pace with the expansion in production, "We do not encourage the expansion in land area although we do encourage productivity and quality improvements to maintain prices," he said.
"The rapid growth in tea production in the last two decades despite falling markets reflects the drive by producer countries to expand tea areas in order to spread the cost of production," Mr Hettiarachchi told the annual general meeting of the Colombo Tea Traders' Association Friday.
"We would also like to expand but the Tea Board in particular does not encourage any production expansion area-wise in Sri Lanka because of the dire consequences that would entail by over-production in the long-run."
The UN's Food and Agriculture Organisation expressed concern over the possibility of excess production at the recent Inter-Governmental Group on Tea meeting of tea producing and consuming countries in China.
"The FAO is concerned that tea production growth is in excess of demand and finds the situation alarming. This should be of concern to the tea industry. The expansion has come mainly due to record crops in China, Vietnam and India," Hettiarachchi said.
World tea prices on average rose 6.5 percent in 2007, on top of an 11 percent rise in 2006.
"This is a phenomenal increase in price," Hettiarachchi said. "Prices are expected to maintain their upward trend in 2008 too because of tight supply, made worse by the decline in crop in Kenya."
Hettiarachchi said the FAO is also alarmed over the sharp price increases.
Source: Lanka Business Online
Sri Lanka Tea Board chairman Lalith Hettiarachchi said that although tea prices were now at high levels there was concern that the growth in consumption was not keeping pace with the expansion in production, "We do not encourage the expansion in land area although we do encourage productivity and quality improvements to maintain prices," he said.
"The rapid growth in tea production in the last two decades despite falling markets reflects the drive by producer countries to expand tea areas in order to spread the cost of production," Mr Hettiarachchi told the annual general meeting of the Colombo Tea Traders' Association Friday.
"We would also like to expand but the Tea Board in particular does not encourage any production expansion area-wise in Sri Lanka because of the dire consequences that would entail by over-production in the long-run."
The UN's Food and Agriculture Organisation expressed concern over the possibility of excess production at the recent Inter-Governmental Group on Tea meeting of tea producing and consuming countries in China.
"The FAO is concerned that tea production growth is in excess of demand and finds the situation alarming. This should be of concern to the tea industry. The expansion has come mainly due to record crops in China, Vietnam and India," Hettiarachchi said.
World tea prices on average rose 6.5 percent in 2007, on top of an 11 percent rise in 2006.
"This is a phenomenal increase in price," Hettiarachchi said. "Prices are expected to maintain their upward trend in 2008 too because of tight supply, made worse by the decline in crop in Kenya."
Hettiarachchi said the FAO is also alarmed over the sharp price increases.
Source: Lanka Business Online
Sri Lanka To Join Tea Producers' Forum
Sri Lanka is to join a global forum of major tea producing countries, Tea Board chairman Lalith Hettiarachchi said.
Most major tea producing countries have signed a memorandum of understanding to form the International Tea Producers Forum (ITPF) which will focus on issues of concern to producers, he said.
The Plantations Industries Ministry is to seek cabinet approval soon to ratify Sri Lanka's membership of the ITPF.
The MoU was signed at the recent meeting of the UN Food and Agriculture Organisation's Inter-Governmental Group (IGG) on Tea meeting of tea producing and consuming countries in China.
The ITPF is modelled on the lines of the International Coffee Organization, International Pepper Community, and Organization of the Petroleum Exporting Countries.
Members of the proposed forum include Kenya, India, Sri Lanka, Bangladesh, Indonesia, Tanzania, Malawi, and Zimbabwe.
China, which is mainly a green tea producer, is not a member of the producers’ forum.
Major tea producer countries as well as the FAO expressed concern over the possibility of excess production at the IGG meeting in China.
Source: Lanka Business Online
Most major tea producing countries have signed a memorandum of understanding to form the International Tea Producers Forum (ITPF) which will focus on issues of concern to producers, he said.
The Plantations Industries Ministry is to seek cabinet approval soon to ratify Sri Lanka's membership of the ITPF.
The MoU was signed at the recent meeting of the UN Food and Agriculture Organisation's Inter-Governmental Group (IGG) on Tea meeting of tea producing and consuming countries in China.
The ITPF is modelled on the lines of the International Coffee Organization, International Pepper Community, and Organization of the Petroleum Exporting Countries.
Members of the proposed forum include Kenya, India, Sri Lanka, Bangladesh, Indonesia, Tanzania, Malawi, and Zimbabwe.
China, which is mainly a green tea producer, is not a member of the producers’ forum.
Major tea producer countries as well as the FAO expressed concern over the possibility of excess production at the IGG meeting in China.
Source: Lanka Business Online
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