Jaggery, Rice and Sugarcane

Short-supply and growing demand from states such as Orissa, Bihar and Andhra Pradesh have led to a rise in the price of jaggery. Prices of black jaggery in Andhra Pradesh have already surged by over 50% in October 2009 to Rs275-Rs295/10kg from Rs170-Rs190/10kg in October 2008. From November 2009, prices are expected to drop by 10%-20% as jaggery supply would increase significantly and demand would decline with the end of the festive season.

India is likely to become a net importer of rice for the first time in 21 years in 2010. The kharif output because of deficient rainfall is forcing India to consider importing three million metric tonnes of rice next year. The kharif crop, which accounts for 80% of total output, may slump as much as 24% to 65 million tonnes, from 85 million tonnes a year ago. Central Board of Excise and Customs scrapped the 70% import tax to encourage imports.

The Union Cabinet has fixed a ‘fair and remunerative price’ (FRP) of Rs129.84 per quintal payable by sugar mills for cane procurement from farmers during the current 2009-2010 crushing season (October-September). The FRP will replace the Centre’s statutory minimum price (SMP) of Rs107.76 per quintal (linked to 9.5% basic recovery) that was announced on 25th June for the current season. The approved price is linked to a sugar-to-cane recovery of 9.5%. For every 0.1% increase over the basic recovery rate, mills would be obliged to pay premium of Rs1.37 per quintal.
 

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COMMENTS

kalpesh m

9 years ago

i have a lots of tin of jaggery i want to sell them

Copper

Between January 2009 and October 2009, the price of copper has shot up 125%. However, inventories of copper, monitored by the Shanghai Futures Exchange, stood at 102,835 tonnes as on 30 October 2009, up from 17,822 tonnes at the start of the year. China’s copper imports more than doubled in the first nine months of the calendar year to 2.6 million metric tonnes. Even on the London Metal Exchange (LME), inventories of copper stood at 371,725 tonnes. Rising inventories on the LME indicate lack of recovery in demand outside China. Rising inventories, demand worries and a stronger dollar may weigh on the price of the red metal.

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China faces massive steel oversupply; global prices likely to be affected

China’s steel trade body fears a rapidly worsening situation in the December quarter and early 2010

While Indian steel stocks are rallying, China Iron and Steel Association (CISA) has warned that oversupply is the major problem that the Chinese steel sector would need to confront. The trade body expects the situation to worsen in the fourth quarter and in early 2010. Steel is a globally-traded commodity and overcapacity in China is bound to lead to lower global prices and pressure on Indian steel companies.

According to CISA statistics, the steel inventories of 26 large and medium-sized cities totalled 11.13 million tonnes (MT) at September 2009, up 5.3MT or 90.9% from the beginning of this year. Further, the 68 large- and medium-sized steel enterprises’ steel and billet steel inventories totalled 11.55MT at September’s closing, up 1.44MT or 14.26% from the beginning of the year. Of the 70 large- and medium-sized steel enterprises, 10 suffered losses in the first nine months as compared to seven in the same period last year. China’s crude steel output was 420.40MT, up 7.5% year-on-year over the first nine months of this year, up 29.37MT. China’s current steel capacity is around 600MT per year, with around another 58MT per year under construction.
 
Meanwhile, the entire year’s output is estimated at 550MT, up 50MT or 10% from 2008. In the first nine months of this year China imported 1.37MT of crude steel as compared with the 39.47MT of net exports in the same period last year.
 
As total net crude steel exports reached 47.63MT for the entire 2008, some 47MT will be shifted from the international market to the domestic market. China’s apparent steel demand rose 20% year-on-year in the first nine months, to 421.8MT, mainly driven by the government’s expansion of fixed asset investment, and the growth is predicted to sustain into the fourth quarter and early next year.
 
China has also imported 1.005MT of stainless steel in the first nine months, up by 4.3% year-on-year and exported 4,76,800 tonnes, down by 45.5% year-on-year. During January 2009 to September 2009 the Chinese stainless steel output was 6.569MT, up by 37.5% year-on-year.
 
As per reports, the output growth of crude steel and the change in imports and exports would bring the supply of crude steel in the Chinese market at 20% above last year’s figures. In October 2009 alone, Chinese crude steel production growth has sharply grown by 42% year-on-year to 51.75MT.
Swapnil Suvarna [email protected]
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