Monsoon, the main source for irrigation for the country’s 235 million farmers, may be on the lower end of the forecast. Rainfall in the June-September season will be 93% of the long-period average of 89 centimetres (35 inches). Rain in July, the wettest month in the June-to-September monsoon season, was 98% of the long-period mean, or more than forecast. That wasn’t enough to make up for the 52% shortfall in June.
Despite bearish prospects in the medium to long term, edible oils such as soya and palm have rallied over the past few days on cues from overseas exchanges. Price support came from Chinese demand and an increase in crude oil prices. Edible oils are diverted for making bio diesel when the price of crude goes up.
India exported over 20% less coffee so far this calender year at about 1.18 lakh tonnes, compared to 1.48 lakh tonnes last year. Export orders suffered due to higher prices of the Indian coffee, compared with that of Vietnam, Brazil and the US. Indian coffee is quoting 10-15% higher than that of Vietnam and the US in the global market. Export of instant coffee fell to 17,646 tonnes from 23,751 tonnes in the previous year.