Turmeric futures hit a new contract high on Monday afternoon on lower rainfall in major producing regions, which delayed cultivation and spurred fears of lower acreage in the current season, analysts said.
Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu, main turmeric producing states, received lower rainfall compared to long term average from June 1 to July 9, the weather department data showed.
At 1:18 pm IST, the August contract on the National Commodity and Derivatives Exchange (NCDEX) was up 0.81 per cent at 4,623 rupees per 100 kg.
The contract earlier hit a new high of Rs 4,632. In Nizamabad, a key spot market in southern state of Andhra Pradesh, the price was up 44 rupees at Rs 4,316 per 100 kg.
JEERA: Indian jeera futures, weak in early trade on profit-taking, erased losses and hit new highs on strong export demand and weak arrivals, analysts said.
The benchmark September contract hit a new contract high of Rs 13,288. Weak arrivals in the physical market also boosted the sentiment, they said.
India, the world's largest jeera producer and exporter, exported about 6,500 tonnes in April-May, compared with 2,180 tonnes a year ago.
At 1:18 pm IST, September contract was trading at Rs 13,247 per 100 kg, up 0.33 per cent.
Spot jeera was trading steady at Rs 12,137 per 100 kg in Unjha, a major trading hub in Gujarat.
CHILLI: Chilli futures extended gains on robust export demand amid scarcity of quality produce in the spot market, analysts said.
Unseasonal rains have affected the quality of Indian chilli and stocks of medium and best quality produce in cold storages in Guntur have fallen 34.8 per cent at end of first week of July, a trade official said last week.
At 1:02 pm IST, August contract was up 0.40 per cent at Rs 5,580 per 100 kg.
In Guntur, a key spot market in southern state of Andhra Pradesh, the price was up Rs 31 at Rs 4,993 per 100 kg.
PEPPER: Indian pepper futures were trading lower in afternoon trade on sluggish export demand due to fresh arrivals in Indonesia and Brazil, analysts said.
Arrivals in Indonesia and Brazil, two of the largest producers and exporters, started in July.
However, low rainfall in major growing regions and weak arrivals capped the losses, they said.
Kerala, which contributes about 90 per cent of the total production, has received 39 per cent lower rainfall during June 1-July 9, compared with its long-term average, according to the weather department.
The plant needs rain at regular intervals for better flowering, which normally happens during June and July.
At 1:13 pm IST, the benchmark August contract was at Rs 14,373 per 100 kg, down 0.23 per cent.
Source: Economic Times
Monday, July 14, 2008
Wednesday, July 9, 2008
Rainfall Fears For Indian Turmeric Crop
Deficient rainfall in the main Indian turmeric growing states has delayed cultivation and farmers fear that acreage may fall this year if weak monsoon persists, traders and analysts said.
Andhra Pradesh, Tamil Nadu and Karnataka in southern India and Maharashtra in the west are main producers of turmeric where lower rains have delayed sowing by a fortnight, Naresh Shah, a trader based in Sangli in Maharashtra, said.
"Everybody is waiting for rains. If they remain weak for the next fortnight, then acreage under turmeric will certainly go down," he said.
Turmeric cultivation starts in June, when monsoon reaches the southern and western states of India.
Lower rainfall may force farmers to opt for corn and soybean crops, which require less water than turmeric and are also giving good returns, said Punam Chand Gupta, a large trader and exporter based in Nizamabad, Andhra Pradesh.
"Already we have seen some diversion in Andhra Pradesh," Gupta said.
The arrival of monsoon three days ahead of schedule in turmeric producing states had led traders to expect higher acreage, helping farmers get higher prices.
The price of turmeric in the Nizamabad spot market was around 4,100 rupees per 100 kg this year, almost double the 2,100 rupees that prevailed in June 2007, according to data compiled by National Commodity and Derivatives Exchange (NCDEX).
Acreage in Tamil Nadu, where rains were higher than other turmeric growing states may rise, but Maharashtra, Karnataka and Andhra Pradesh are likely to see a decline, said Nandkishore Sarda, a trader based in Sangli.
In June 1 to July 2 period, central parts of Maharashtra, northern Karnataka and coastal Andhra Pradesh received lower rainfall compared to long term average, while Tamil Nadu rains were higher, the India Meteorological Department data showed.
Turmeric is a delicate crop and needs to be cultivated and harvested with care to avoid damage to the rhizomes. After the harvest, these are boiled and dried before reaching the markets, making it labour intensive.
Source: Reuters
Andhra Pradesh, Tamil Nadu and Karnataka in southern India and Maharashtra in the west are main producers of turmeric where lower rains have delayed sowing by a fortnight, Naresh Shah, a trader based in Sangli in Maharashtra, said.
"Everybody is waiting for rains. If they remain weak for the next fortnight, then acreage under turmeric will certainly go down," he said.
Turmeric cultivation starts in June, when monsoon reaches the southern and western states of India.
Lower rainfall may force farmers to opt for corn and soybean crops, which require less water than turmeric and are also giving good returns, said Punam Chand Gupta, a large trader and exporter based in Nizamabad, Andhra Pradesh.
"Already we have seen some diversion in Andhra Pradesh," Gupta said.
The arrival of monsoon three days ahead of schedule in turmeric producing states had led traders to expect higher acreage, helping farmers get higher prices.
The price of turmeric in the Nizamabad spot market was around 4,100 rupees per 100 kg this year, almost double the 2,100 rupees that prevailed in June 2007, according to data compiled by National Commodity and Derivatives Exchange (NCDEX).
Acreage in Tamil Nadu, where rains were higher than other turmeric growing states may rise, but Maharashtra, Karnataka and Andhra Pradesh are likely to see a decline, said Nandkishore Sarda, a trader based in Sangli.
In June 1 to July 2 period, central parts of Maharashtra, northern Karnataka and coastal Andhra Pradesh received lower rainfall compared to long term average, while Tamil Nadu rains were higher, the India Meteorological Department data showed.
Turmeric is a delicate crop and needs to be cultivated and harvested with care to avoid damage to the rhizomes. After the harvest, these are boiled and dried before reaching the markets, making it labour intensive.
Source: Reuters
Tuesday, July 8, 2008
Vietnam Pepper Exports To Fall
Exports of pepper from Vietnam, the world’s biggest producer, may fall by almost 10 percent this year as farmers hold back stock because the central bank’s interest-rate increases are raising their costs.Shipments may decline to 75,000 metric tons, from 83,000 tons in 2007, according to Do Ha Nam, chairman of the Vietnam Pepper Association.
The estimate is based on a drop in the volume of exports in the first five months of the year, he said.“Farmers don’t want to sell pepper now because they see increasing farming costs, so they want to wait for a higher price,” Nam said in an interview in Ho Chi Minh City recently.“Vietnamese pepper exporters are having difficulties buying from farmers.”
Exporters’ production costs have increased after the State Bank of Vietnam raised interest rates three times this year to slow the fastest inflation since at least 1992.
Producers may hold back stock to wait for higher prices next year, Nam said.The International Pepper Community, an association of producing countries based in Jakarta, forecasts a shortage of 54,000 tons of the spice globally this year, according to Nam.
Vietnam’s pepper association reduced forecasts for exports this year from 80,000 tons as banks increased lending rates to as much as 21 percent.The central bank raised interest rates to 14 percent from 12 percent on June 11.
“Without increasing the buying price, traders don’t have much money because banks are charging a high interest rate for loans,” Nam said.Farmers can stock pepper for about three years without damaging the quality of the spice, he said.Vietnam’s average export price in the first five months of this year was US$3,500 a ton, compared with $3,300 a ton in 2007, according to the HCMC-based Vietnam Pepper Association, which represents 27 Vietnamese exporters.
“This will definitely boost exports from India as it is the second-biggest producer and push up local prices,” Harish Galipelli, head of research at Karvy Comtrade Ltd., said by phone from the southern Indian city of Hyderabad.Vietnam shipped 35,000 tons of pepper with a turnover of $124 million in the first five months of the year, compared with 39,000 tons of exports worth $107 million in the same period last year.
Vietnam earned $271 million from 83,000 tons export last year.The country’s largest pepper-growing areas are the southern provinces of Binh Phuoc, Dong Nai and Ba Ria-Vung Tau.The country’s exports started with 10,000 tons in 1996, peaking at 116,000 tons a decade later.The country produced 85,000 tons of the spice last year.The next biggest growers were India and Brazil, which produced 50,000 tons and 35,000 tons respectively, according to figures from the International Pepper Community.
Source: Thanh Nien News
The estimate is based on a drop in the volume of exports in the first five months of the year, he said.“Farmers don’t want to sell pepper now because they see increasing farming costs, so they want to wait for a higher price,” Nam said in an interview in Ho Chi Minh City recently.“Vietnamese pepper exporters are having difficulties buying from farmers.”
Exporters’ production costs have increased after the State Bank of Vietnam raised interest rates three times this year to slow the fastest inflation since at least 1992.
Producers may hold back stock to wait for higher prices next year, Nam said.The International Pepper Community, an association of producing countries based in Jakarta, forecasts a shortage of 54,000 tons of the spice globally this year, according to Nam.
Vietnam’s pepper association reduced forecasts for exports this year from 80,000 tons as banks increased lending rates to as much as 21 percent.The central bank raised interest rates to 14 percent from 12 percent on June 11.
“Without increasing the buying price, traders don’t have much money because banks are charging a high interest rate for loans,” Nam said.Farmers can stock pepper for about three years without damaging the quality of the spice, he said.Vietnam’s average export price in the first five months of this year was US$3,500 a ton, compared with $3,300 a ton in 2007, according to the HCMC-based Vietnam Pepper Association, which represents 27 Vietnamese exporters.
“This will definitely boost exports from India as it is the second-biggest producer and push up local prices,” Harish Galipelli, head of research at Karvy Comtrade Ltd., said by phone from the southern Indian city of Hyderabad.Vietnam shipped 35,000 tons of pepper with a turnover of $124 million in the first five months of the year, compared with 39,000 tons of exports worth $107 million in the same period last year.
Vietnam earned $271 million from 83,000 tons export last year.The country’s largest pepper-growing areas are the southern provinces of Binh Phuoc, Dong Nai and Ba Ria-Vung Tau.The country’s exports started with 10,000 tons in 1996, peaking at 116,000 tons a decade later.The country produced 85,000 tons of the spice last year.The next biggest growers were India and Brazil, which produced 50,000 tons and 35,000 tons respectively, according to figures from the International Pepper Community.
Source: Thanh Nien News
Monday, July 7, 2008
India Spice Exports Up 20 Per Cent
India's spices export in the first two months of the 2008/09 fiscal year rose 20 percent in volume terms on the back of strong demand for pepper, chilli and jeera, the Spices Board said on Monday.
Total spices exports during April-May was at 98,570 tonnes, compared with 82,210 tonnes a year-ago, it said in a statement.
In value terms, exports rose 28 percent to 8.85 billion rupees during the period from 6.91 billion rupees in the year ago period.
Spice oils, oleoresins and mint products together contributed 35 percent of the total export earnings, while chilli contributed 27 percent followed by pepper, jeera and turmeric, it said.
Pepper exports during the period rose 17 percent to 5,750 tonnes. India, the second largest pepper producer and exporter, exports mainly to U.S., U.K., Italy, Germany and Canada.
Cumin seed, or jeera, exports grew three times in April-May due to strong export demand on hopes of lower production in other major producing countries like Syria and Turkey.
The country exported about 6,500 tonnes, compared with 2,180 tonnes a year-ago. India is the world's largest jeera producer and exporter.
Chilli exports in the same period rose 21 percent to 50,000 tonnes on strong demand from Pakistan, which is the main competitor to India in international markets, it said.
Exports of spice oils and oleoresins increased 41 percent to 1,500 tonnes, while mint products exports rose 21.1 percent to 2,900 tonnes during April-May, the statement said. However, exports of spices like turmeric, cardamom, ginger and fennel was lesser than the year-ago period.
Turmeric exports declined 7.1 percent to 8,550 tonnes due to higher prices in domestic markets, which diverted buyers towards cheaper sources like Myanmar.
Turmeric prices in Nizamabad spot market almost doubled to 4,100 rupees in June compared to the year-ago period on lower output.
India produces over 4 million tonnes of spices and exports around 180 spice products to over 150 countries.
Source: Reuters
Total spices exports during April-May was at 98,570 tonnes, compared with 82,210 tonnes a year-ago, it said in a statement.
In value terms, exports rose 28 percent to 8.85 billion rupees during the period from 6.91 billion rupees in the year ago period.
Spice oils, oleoresins and mint products together contributed 35 percent of the total export earnings, while chilli contributed 27 percent followed by pepper, jeera and turmeric, it said.
Pepper exports during the period rose 17 percent to 5,750 tonnes. India, the second largest pepper producer and exporter, exports mainly to U.S., U.K., Italy, Germany and Canada.
Cumin seed, or jeera, exports grew three times in April-May due to strong export demand on hopes of lower production in other major producing countries like Syria and Turkey.
The country exported about 6,500 tonnes, compared with 2,180 tonnes a year-ago. India is the world's largest jeera producer and exporter.
Chilli exports in the same period rose 21 percent to 50,000 tonnes on strong demand from Pakistan, which is the main competitor to India in international markets, it said.
Exports of spice oils and oleoresins increased 41 percent to 1,500 tonnes, while mint products exports rose 21.1 percent to 2,900 tonnes during April-May, the statement said. However, exports of spices like turmeric, cardamom, ginger and fennel was lesser than the year-ago period.
Turmeric exports declined 7.1 percent to 8,550 tonnes due to higher prices in domestic markets, which diverted buyers towards cheaper sources like Myanmar.
Turmeric prices in Nizamabad spot market almost doubled to 4,100 rupees in June compared to the year-ago period on lower output.
India produces over 4 million tonnes of spices and exports around 180 spice products to over 150 countries.
Source: Reuters
Saturday, July 5, 2008
Indian Pepper Rises In Tight Supply
Indian pepper futures moved up on Friday on a tight supply situation and tracking low rainfall in major growing regions, which may affect production, analysts said.
"Arrivals are very low in the spot market as farmers are not offloading their stocks on the expectation of further price rise," said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.
Harvesting is over in Vietnam and prices have started rising there, which also supported the market, he said. In Vietnam, the largest producer and exporter, harvesting period is March-June.
Rainfall has eased in Kerala, a major growing region, which is likely to affect the flowering in the spikes of the plants, said an analyst with Anagram Comtrade Ltd.
Kerala contributes about 90 percent of the total production. The plant needs well distributed rain for better flowering, which normally happens during June and July.
The August contract would face resistance at 14,375 rupees and get support at 14,000 rupees, Ratandhara said.
Open interest for August contract rose to 8,779 tonnes from 8,536 tonnes the previous session.
Spot pepper rose 1.4 percent to 14,334 rupees per 100 kg in spices hub of Kochi in Kerala.
Source: Reuters
"Arrivals are very low in the spot market as farmers are not offloading their stocks on the expectation of further price rise," said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.
Harvesting is over in Vietnam and prices have started rising there, which also supported the market, he said. In Vietnam, the largest producer and exporter, harvesting period is March-June.
Rainfall has eased in Kerala, a major growing region, which is likely to affect the flowering in the spikes of the plants, said an analyst with Anagram Comtrade Ltd.
Kerala contributes about 90 percent of the total production. The plant needs well distributed rain for better flowering, which normally happens during June and July.
The August contract would face resistance at 14,375 rupees and get support at 14,000 rupees, Ratandhara said.
Open interest for August contract rose to 8,779 tonnes from 8,536 tonnes the previous session.
Spot pepper rose 1.4 percent to 14,334 rupees per 100 kg in spices hub of Kochi in Kerala.
Source: Reuters
Thursday, June 26, 2008
Pepper Market Report - Thursday 26 June 2008
After a lacklustre trading session in NMCE, pepper futures were settled lower on sluggish demand situation in the physical market. Traders were sidelined in the absence of fresh leading news in the market. New arrivals from Brazil and Indonesia will start in July, two of the world's largest producers and exporters. Vietnam arrivals are still continuing even though the harvesting season finished by the end of May. According to the Spices Board, total pepper output in India was 50,000 tonnes this year, almost steady compared to last year. While in India, harvesting starts in December and continues to February, the world's second largest producer.
July contract in NMCE traded in the range of Rs. 139.25– Rs. 141.00 and closed at 139.87 (140.80). Combined volume stood at 1278. Open interest decreased by 28 to 917. Pepper inventories in the NMCE accredited warehouses decreased by 50MT to 1665 metric tonnes. Pepper spot price decreased by 100 rupees to 14200 rupees a quintal, in Kochi.
INTRADAY OUTLOOK
NMCE Pepper (July) bullish above 140.62 next levels are 141.71 and 143.00. Bearish below 140.07 Next levels are 139.14 and 137.85.
Medium term Outlook
On Medium term basis, NMCE pepper (July) Bullish above 148.30, Res: 150.00, 153.30 and 155.00. Supports held at 143.70, 140.00 and 136.20.
Source: Commodityonline
July contract in NMCE traded in the range of Rs. 139.25– Rs. 141.00 and closed at 139.87 (140.80). Combined volume stood at 1278. Open interest decreased by 28 to 917. Pepper inventories in the NMCE accredited warehouses decreased by 50MT to 1665 metric tonnes. Pepper spot price decreased by 100 rupees to 14200 rupees a quintal, in Kochi.
INTRADAY OUTLOOK
NMCE Pepper (July) bullish above 140.62 next levels are 141.71 and 143.00. Bearish below 140.07 Next levels are 139.14 and 137.85.
Medium term Outlook
On Medium term basis, NMCE pepper (July) Bullish above 148.30, Res: 150.00, 153.30 and 155.00. Supports held at 143.70, 140.00 and 136.20.
Source: Commodityonline
Malaysia Sits Tight On Rice Imports
Following the rice growing countries’ announcement that all of them are expecting a bumper crop this year, Malaysia, a major rice importer, has decided to take a wait-and-watch police as far as rice imports are concerned.
Malaysia will wait for the prices to come down before placing further orders to import rice from Thailand.
According to Padiberas Nasional Bhd, Malaysia’s only rice importer, the company expects the prices to cool down before it enters the market again.
It expects the rates to fall below $600 per tonne before buying more rice.
The importer expects rice prices to fall from $720 per tonne for benchmark Thai white rice, because rice exporters such as Thailand, Vietnam and India predict bumper harvests in August and September.
Padiberas Nasional, also known as Bernas, is cautious about the government entering the market now to buy a big block of rice.
Bernas purchased 200,000 tonnes of Thai rice this past month, of which 80,000 tonnes have been delivered. Bernas is also keen to buy 300,000 tonnes from Thailand, but no agreements have been signed yet.
Source: Commodity Online
Malaysia will wait for the prices to come down before placing further orders to import rice from Thailand.
According to Padiberas Nasional Bhd, Malaysia’s only rice importer, the company expects the prices to cool down before it enters the market again.
It expects the rates to fall below $600 per tonne before buying more rice.
The importer expects rice prices to fall from $720 per tonne for benchmark Thai white rice, because rice exporters such as Thailand, Vietnam and India predict bumper harvests in August and September.
Padiberas Nasional, also known as Bernas, is cautious about the government entering the market now to buy a big block of rice.
Bernas purchased 200,000 tonnes of Thai rice this past month, of which 80,000 tonnes have been delivered. Bernas is also keen to buy 300,000 tonnes from Thailand, but no agreements have been signed yet.
Source: Commodity Online
Tata Coffee Crop Hit By Wet Weather
Un-seasonal rains during February and March this year have hit Tata Coffee's robusta crop, while the arabica variety has remained unaffected according to comments by Mr M H Ashraff, managing director, Tata Coffee. The company sources a major part of its coffee needs from own estates.
Declining to reveal the production estimates for the crop year 2008-09, Mr Ashraff said, "The company's crop outlook is going to be similar or slightly higher than the last season." The company produced 6.4 per cent more coffee at 8,000 tonnes in 2007-08 than in the previous crop year (2006-07). For the company, 2007-08 proved to be a bumper crop. Of the 8,000 tonnes production, arabica accounted for 2,500 tonnes and robusta 5,500 tonnes.
The robusta varieties are extensively used for instant coffee. For instant coffee production, the company sourced around 3,600 tonnes from its own coffee estates. It exports mainly to Russia, the CIS countries and eastern Europe.
According to trade sources the decline in robusta output may partially affect Tata Coffee's instant coffee production. The company may have to import from Vietnam and other low-cost producers to maintain exports.
Earlier this year, the company raised the prices of its instant coffee products by 10-12 per cent. Instant coffee exports contribute around 60 per cent to its revenues.
According to Mr Ashraff, coffee prices are unlikely to move up much from its present levels. On the other hand, coffee exporters feel that in case of a likely bumper crop in Brazil this year, prices may go down in the coming crop season (2008-09).
Source: Business Standard
Declining to reveal the production estimates for the crop year 2008-09, Mr Ashraff said, "The company's crop outlook is going to be similar or slightly higher than the last season." The company produced 6.4 per cent more coffee at 8,000 tonnes in 2007-08 than in the previous crop year (2006-07). For the company, 2007-08 proved to be a bumper crop. Of the 8,000 tonnes production, arabica accounted for 2,500 tonnes and robusta 5,500 tonnes.
The robusta varieties are extensively used for instant coffee. For instant coffee production, the company sourced around 3,600 tonnes from its own coffee estates. It exports mainly to Russia, the CIS countries and eastern Europe.
According to trade sources the decline in robusta output may partially affect Tata Coffee's instant coffee production. The company may have to import from Vietnam and other low-cost producers to maintain exports.
Earlier this year, the company raised the prices of its instant coffee products by 10-12 per cent. Instant coffee exports contribute around 60 per cent to its revenues.
According to Mr Ashraff, coffee prices are unlikely to move up much from its present levels. On the other hand, coffee exporters feel that in case of a likely bumper crop in Brazil this year, prices may go down in the coming crop season (2008-09).
Source: Business Standard
Wednesday, June 25, 2008
Indian's Cardamom Exporters Earn More, Ship Less
Exporters of small cardamom have earned more despite a lower volume of shipment in 2007-08 over the previous fiscal because of significant rise in the price fetched. But, large cardamom exporters earned less due to lower shipment at a flat price.
An analysis of the information available with the Spice Board and exporters shows that in fiscal 2007-08, only 500 tonnes of small cardamom could be exported against 650 tonnes in the previous fiscal as the asking price rose to an average of Rs 495 a kg, up Rs 151 a kg. Aided by the higher price, the overall earnings increased to Rs 247.5 million from Rs 223.6 million. This means the earnings rose by 11 per cent despite shipments reducing by 23 per cent.
The actual figures were lower than the targets. The Spices Board had fixed a target of Rs 262.5 million to be earned from an export of 750 tonnes. The achievement was 67 per cent of the volume and 94 per cent of the value.
Saudi Arabia, Malaysia, Japan and the UK were the major importers. Global prices rose because of production decline in Guatemala which accounted for 90 per cent of the global trade. Prices of Indian extra bold cardamom rose to $15.45 a kg in 2007-08 from $9.62 in the previous fiscal.
Prices continue to rule high in Indian auction centres. Currently, at Vandanmettu, a kg of different varieties of current season cardamom fetches an average price of Rs 647 against Rs 348 for the previous season.
At Bodinayakanur, prices average Rs 565 (Rs 310), Thekkady, Rs 617 (Rs 368), Saklespur Rs 354 (Rs 141) and Sirsi Rs 403 (Rs 205). The all-India auction price since the start of the cardamom season on August 1, 2007 to early June 2008 averaged Rs 494 a kg against Rs 313 in the previous season.
The export price of large cardamom stood flat at Rs 113 a kg, but volume dropped to 1,325 tonnes from 1,500 tonnes arising from reduced availability. Consequently, the earnings fell to Rs 150 million from Rs 169.5 million.
Source: Sify
An analysis of the information available with the Spice Board and exporters shows that in fiscal 2007-08, only 500 tonnes of small cardamom could be exported against 650 tonnes in the previous fiscal as the asking price rose to an average of Rs 495 a kg, up Rs 151 a kg. Aided by the higher price, the overall earnings increased to Rs 247.5 million from Rs 223.6 million. This means the earnings rose by 11 per cent despite shipments reducing by 23 per cent.
The actual figures were lower than the targets. The Spices Board had fixed a target of Rs 262.5 million to be earned from an export of 750 tonnes. The achievement was 67 per cent of the volume and 94 per cent of the value.
Saudi Arabia, Malaysia, Japan and the UK were the major importers. Global prices rose because of production decline in Guatemala which accounted for 90 per cent of the global trade. Prices of Indian extra bold cardamom rose to $15.45 a kg in 2007-08 from $9.62 in the previous fiscal.
Prices continue to rule high in Indian auction centres. Currently, at Vandanmettu, a kg of different varieties of current season cardamom fetches an average price of Rs 647 against Rs 348 for the previous season.
At Bodinayakanur, prices average Rs 565 (Rs 310), Thekkady, Rs 617 (Rs 368), Saklespur Rs 354 (Rs 141) and Sirsi Rs 403 (Rs 205). The all-India auction price since the start of the cardamom season on August 1, 2007 to early June 2008 averaged Rs 494 a kg against Rs 313 in the previous season.
The export price of large cardamom stood flat at Rs 113 a kg, but volume dropped to 1,325 tonnes from 1,500 tonnes arising from reduced availability. Consequently, the earnings fell to Rs 150 million from Rs 169.5 million.
Source: Sify
Bangladesh Spice Production Targets Small Increase
The target of spices production has been fixed at 1,935,000 tonnes from 485,000 hectares of land in the 2008-09 fiscal surpassing the last year's target by 73,000 tonnes, according to Agriculture Ministry sources.
Of the total quantity, the onion production target has been fixed at 960,000 tonnes from 160,000 hectares of lands, garlic at 390,000 tonnes from 65,000 hectares, chilly at 225,000tonnes from 125,000 hectares.
Ginger production target has been estimated at 188,000 tonnes from 15,000 hectares of land, corundum at 44,000 tonnes from 350,000 hectares and dry turmeric at 90,000 tonnes from 30,000 hectares of land.
Chilly production has been projected at 263,000 tonnes next year from 232,000 tonnes last year.
The target of production of spices could not be achieved last year due to two floods and a devastating cyclone.
A high official of the Agriculture Ministry said, "our farmers will be able achieve the target next fiscal year if they get fertilisers and irrigation facilities on time."
Source: The New Nation
Of the total quantity, the onion production target has been fixed at 960,000 tonnes from 160,000 hectares of lands, garlic at 390,000 tonnes from 65,000 hectares, chilly at 225,000tonnes from 125,000 hectares.
Ginger production target has been estimated at 188,000 tonnes from 15,000 hectares of land, corundum at 44,000 tonnes from 350,000 hectares and dry turmeric at 90,000 tonnes from 30,000 hectares of land.
Chilly production has been projected at 263,000 tonnes next year from 232,000 tonnes last year.
The target of production of spices could not be achieved last year due to two floods and a devastating cyclone.
A high official of the Agriculture Ministry said, "our farmers will be able achieve the target next fiscal year if they get fertilisers and irrigation facilities on time."
Source: The New Nation
New Spice Quality Lab For Mumbai
The Spices Board is setting up a new quality evaluation laboratory at an investment of Rs 50 million in Mumbai.
The laboratory, with the most modern state-of-the-art technology, is to be set up at Vashi, Navi Mumbai, to service exporters in the Mumbai region, which is a major spice exporting hub.
The laboratory would benefit exporters of spices and spice products in the Western region who are dependent on the board's lab in Cochin for testing of export samples.
The lab will service exporters in Ahmedabad, Nagpur and Kolkata besides Mumbai, enabling speedy testing of export samples, it said.
Source: The Hindu
The laboratory, with the most modern state-of-the-art technology, is to be set up at Vashi, Navi Mumbai, to service exporters in the Mumbai region, which is a major spice exporting hub.
The laboratory would benefit exporters of spices and spice products in the Western region who are dependent on the board's lab in Cochin for testing of export samples.
The lab will service exporters in Ahmedabad, Nagpur and Kolkata besides Mumbai, enabling speedy testing of export samples, it said.
Source: The Hindu
Ho Chi Minh City To Host International Pepper Conference
The 36th international pepper conference (IPC) is scheduled to be held in Ho Chi Minh City from November 24-27, according to Vietnam’s Ministry of Agriculture and Rural Development (MARD). Ho Chi Minh City will also host the first ever exhibition on pepper and spice, said the MARD at a press briefing in Hanoi on June 18.
The event will bring together pepper producers, importers and distributors worldwide and serve as a venue for domestic and foreign businesses to develop their partnership, expand market, develop production and promote trade and investment activities.
The exhibition is expected to draw businesses worldwide which will showcase products made from pepper and various kinds of spice, auxiliary products in service of pepper and spice production and processing on 200 booths, Director of the Vietnam Agricultural Marketing Fair and Exhibition Centre Nguyen Van Thang said.
According to the MARD, Vietnam is currently the world’s largest pepper producer and exporter, contributing more than 30% of the world’s output and representing nearly 50% of the world’s export market share.
Vietnam’s accession to the IPC has helped lift the country’s status in the world pepper market and contributed to the development of the lucrative industry.
In 2007, Vietnam exported 82,000 tonnes of pepper of all kinds. In the first five months of this year, the country earned nearly US $120 million from exporting close to 34,000 tonnes of pepper.
Source: Nhan Dan
The event will bring together pepper producers, importers and distributors worldwide and serve as a venue for domestic and foreign businesses to develop their partnership, expand market, develop production and promote trade and investment activities.
The exhibition is expected to draw businesses worldwide which will showcase products made from pepper and various kinds of spice, auxiliary products in service of pepper and spice production and processing on 200 booths, Director of the Vietnam Agricultural Marketing Fair and Exhibition Centre Nguyen Van Thang said.
According to the MARD, Vietnam is currently the world’s largest pepper producer and exporter, contributing more than 30% of the world’s output and representing nearly 50% of the world’s export market share.
Vietnam’s accession to the IPC has helped lift the country’s status in the world pepper market and contributed to the development of the lucrative industry.
In 2007, Vietnam exported 82,000 tonnes of pepper of all kinds. In the first five months of this year, the country earned nearly US $120 million from exporting close to 34,000 tonnes of pepper.
Source: Nhan Dan
Tuesday, June 24, 2008
Tight Supply Erases Indian Pepper Losses
Indian pepper futures, weak in early trade on sluggish export demand, erased losses on a tight supply situation in the spot market, analysts said.
"Farmers are not ready to sell their stocks due to a recent fall in prices," said Shardul Sharma, an analyst with Sharekhan Commodities Pvt Ltd. Some fresh buying at lower levels also boosted the sentiment, he said.
The benchmark August contract on the National Commodity and Derivatives Exchange fell about 3 percent in the last two trading sessions, exchange data showed.
Early weakness was due to sluggish export demand, said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.
Exporters are not getting enough orders as buyers are expecting a fall in prices after crop arrivals from Brazil and Indonesia in July, he said.
Open interest for August contract rose to 7,005 tonnes from 6,767 tonnes the previous session.
Spot pepper fell 0.5 percent to 14,309 rupees per 100 kg in spices hub of Kochi in Kerala.
Source: Reuters
"Farmers are not ready to sell their stocks due to a recent fall in prices," said Shardul Sharma, an analyst with Sharekhan Commodities Pvt Ltd. Some fresh buying at lower levels also boosted the sentiment, he said.
The benchmark August contract on the National Commodity and Derivatives Exchange fell about 3 percent in the last two trading sessions, exchange data showed.
Early weakness was due to sluggish export demand, said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.
Exporters are not getting enough orders as buyers are expecting a fall in prices after crop arrivals from Brazil and Indonesia in July, he said.
Open interest for August contract rose to 7,005 tonnes from 6,767 tonnes the previous session.
Spot pepper fell 0.5 percent to 14,309 rupees per 100 kg in spices hub of Kochi in Kerala.
Source: Reuters
Monday, June 23, 2008
Sri Lanka Tea Board To Tighten Standards On Exports
The Sri Lanka Tea Board is seeking new laws to tighten quality control on exports and prevent shipments of what are considered teas below a certain minimum standard, a senior official said.
Sri Lanka Tea Board chairman Lalith Hettiarachchi said national legislation was required to enforce the ISO 3720 standard on tea exports. Major tea producing countries last month agreed to stick to ISO 3720 as a minimum quality level to prevent oversupply from depressing prices, he said.
The agreement came at the Intergovernmental Group on Tea of the Food and Agriculture Organization of the United Nations meeting in Hangzhou, China.
"Some countries which were not happy with the ISO 3720 quality standard have now come around and all now have agreed, except Vietnam which is not in the IGG," Hettiarachchi told the annual general meeting of the Colombo Tea Traders' Association Friday.
Sri Lanka Tea Board has been insisting that exporters ship only teas that meet the ISO 3720 standard.
Last year some shipments were allowed after lobbying by certain exporters but these were subsequently halted by the Tea Board.
"Sri Lanka needs national legislation to enforce minimum standards. We will establish standards by regulation very soon," Hettiarachchi said.
"Legislation is a must," he added. "Now the Tea Board itself is facing problems. At this moment, we're fighting battle with certain buyers and sellers who would in the long run squander the good name of Ceylon tea which we have been guarding."
Hettiarachchi said the ISO 3720 standard was required to be enforced to prevent the export of substandard teas that could tarnish the reputation for quality earned by Ceylon tea.
Sri Lanka is one of the big tea exporting countries that has been campaigning to ensure producer countries only ship teas that meet the ISO 3720 standard, to prevent a glut of low quality teas that could bring down prices.
Tea producer countries have been trying to curtail supplies because of fears of a glut in supply.
Imposing a minimum quality standard should automatically curtail the quantities that are exported, industry officials say.
Source: Lanka Business Online
Sri Lanka Tea Board chairman Lalith Hettiarachchi said national legislation was required to enforce the ISO 3720 standard on tea exports. Major tea producing countries last month agreed to stick to ISO 3720 as a minimum quality level to prevent oversupply from depressing prices, he said.
The agreement came at the Intergovernmental Group on Tea of the Food and Agriculture Organization of the United Nations meeting in Hangzhou, China.
"Some countries which were not happy with the ISO 3720 quality standard have now come around and all now have agreed, except Vietnam which is not in the IGG," Hettiarachchi told the annual general meeting of the Colombo Tea Traders' Association Friday.
Sri Lanka Tea Board has been insisting that exporters ship only teas that meet the ISO 3720 standard.
Last year some shipments were allowed after lobbying by certain exporters but these were subsequently halted by the Tea Board.
"Sri Lanka needs national legislation to enforce minimum standards. We will establish standards by regulation very soon," Hettiarachchi said.
"Legislation is a must," he added. "Now the Tea Board itself is facing problems. At this moment, we're fighting battle with certain buyers and sellers who would in the long run squander the good name of Ceylon tea which we have been guarding."
Hettiarachchi said the ISO 3720 standard was required to be enforced to prevent the export of substandard teas that could tarnish the reputation for quality earned by Ceylon tea.
Sri Lanka is one of the big tea exporting countries that has been campaigning to ensure producer countries only ship teas that meet the ISO 3720 standard, to prevent a glut of low quality teas that could bring down prices.
Tea producer countries have been trying to curtail supplies because of fears of a glut in supply.
Imposing a minimum quality standard should automatically curtail the quantities that are exported, industry officials say.
Source: Lanka Business Online
Wednesday, June 18, 2008
Kerala To Double Rice Production
Worried over the state’s increasing food dependency on other states, the Kerala government has drawn up a package for doubling paddy production in the state.
According to officials, the package has free crop insurance, interest-free loans, production incentives, free power and group farming.
The programme, being implemented at an outlay of Rs 1 billion, will be coordinated by the Paddy Board. As part of the programme, soil tests would be undertaken in 1,000 villages and ‘soil health cards’ will be given to farmers.
Farmers will be supplied with harvesting and other machines through the Kerala Agro Industries Corporation as per a farm calendar to be prepared in advance.
The government is also planning to start an agricultural polytechnic with the objective of creating a ‘labour army’ capable of handling modern farm machineries.
The objective was to increase the area of paddy farming from the present 250,000 hectares to 300,000 hectares and the productivity from 2.5 tonnes per hectare to five tonnes.
In the first phase of the programme, the rice production would be raised from 600,000 tonnes to 1,200,000 tonnes.
The year 2008 will be observed as ‘coconut year’, as part of which various projects for increasing the production of coconuts as also to bring about product diversification will be taken up.
A campaign to raise the consumption of coconut oil and other coconut products will also be launched.
The Horticultural Mission will implement projects worth Rs 1.74 billion this year and as the first phase, mango trees will be distributed to 100,000 families through the ‘Krishi Bhavans’.
It is also planned to take the programme to more places in the state by including other fruits. Besides, an ‘international horticultural expo’ will be held for the first time in the state this year.
The Agro Industries Corporation will set up a plant to process 300 tonnes of pepper into ‘white pepper’ annually with an expected turnover of Rs 50 million.
The federation of coconut farmers, Kerafed’, will also establish a unit at Karunagappally to produce desiccated coconut powder, coconut cream and coconut milk with a projected annual turnover of Rs 54 million.
Source: Commodity Online
According to officials, the package has free crop insurance, interest-free loans, production incentives, free power and group farming.
The programme, being implemented at an outlay of Rs 1 billion, will be coordinated by the Paddy Board. As part of the programme, soil tests would be undertaken in 1,000 villages and ‘soil health cards’ will be given to farmers.
Farmers will be supplied with harvesting and other machines through the Kerala Agro Industries Corporation as per a farm calendar to be prepared in advance.
The government is also planning to start an agricultural polytechnic with the objective of creating a ‘labour army’ capable of handling modern farm machineries.
The objective was to increase the area of paddy farming from the present 250,000 hectares to 300,000 hectares and the productivity from 2.5 tonnes per hectare to five tonnes.
In the first phase of the programme, the rice production would be raised from 600,000 tonnes to 1,200,000 tonnes.
The year 2008 will be observed as ‘coconut year’, as part of which various projects for increasing the production of coconuts as also to bring about product diversification will be taken up.
A campaign to raise the consumption of coconut oil and other coconut products will also be launched.
The Horticultural Mission will implement projects worth Rs 1.74 billion this year and as the first phase, mango trees will be distributed to 100,000 families through the ‘Krishi Bhavans’.
It is also planned to take the programme to more places in the state by including other fruits. Besides, an ‘international horticultural expo’ will be held for the first time in the state this year.
The Agro Industries Corporation will set up a plant to process 300 tonnes of pepper into ‘white pepper’ annually with an expected turnover of Rs 50 million.
The federation of coconut farmers, Kerafed’, will also establish a unit at Karunagappally to produce desiccated coconut powder, coconut cream and coconut milk with a projected annual turnover of Rs 54 million.
Source: Commodity Online
Philippine Coconut Exports Show Big Increase
The Philippines’ coconut exports fetched $788.8 million in the first semester for a 90-percent increase as a result of the rising prices of coconut-based products, a report from the state-run Philippine Coconut Authority shows. The equivalent figure for the same period last year was P415.1 million, the report says.
The receipts for coconut oil, the top export earner, rose 133.91 percent in value, to $605.5 million from $258 million. The volume exported also increased to 498,413 metric tons from 358,203 MT.
Copra meal rose 35.94 percent in value to $25 million from $18.39 million, and the volume shipped out also increased 31.97 percent to 250,652 MT from 189,928 MT.
But the value of desiccated coconut shipped out slowed to $72.7 million from $75.7 million, and volume likewise declined to 56,602 MT from 65,000 MT.
Earnings from coconut charcoal fell slightly to $2.4 million from $2.5 million, but the value of activate carbon rose to $18.8 million from $15.68 million.
Coconut chemicals also gained, to $39.97 million from $23.28 million, and other value-added products rose to $25.24 million from $20.62 million.
Source: Manila Standard
The receipts for coconut oil, the top export earner, rose 133.91 percent in value, to $605.5 million from $258 million. The volume exported also increased to 498,413 metric tons from 358,203 MT.
Copra meal rose 35.94 percent in value to $25 million from $18.39 million, and the volume shipped out also increased 31.97 percent to 250,652 MT from 189,928 MT.
But the value of desiccated coconut shipped out slowed to $72.7 million from $75.7 million, and volume likewise declined to 56,602 MT from 65,000 MT.
Earnings from coconut charcoal fell slightly to $2.4 million from $2.5 million, but the value of activate carbon rose to $18.8 million from $15.68 million.
Coconut chemicals also gained, to $39.97 million from $23.28 million, and other value-added products rose to $25.24 million from $20.62 million.
Source: Manila Standard
India Spice Exports Expected To Show 18% Increase
India's spices exports are likely to rise 18 percent to $1.3 billion due to good demand for chilli, pepper and cumin seed, a top official said on Tuesday.
"We have fixed a target of $1.3 billion for 2008/09. We expect demand for chilli, pepper and cumin seed to remain strong," V.J. Kurian, chairman, Spices Board, told Reuters in an interview.
The country's spices exports touched an all-time high of $1.1 billion in 2007/08.
Chilli exports reached a record high of 209,000 tonnes during the period due to lower output in other major producing countries like China and Pakistan. Pepper exports also touched new highs of 35,000 tonnes due to short supply in the global market. However, the board has not fixed exports targets for individual spices for 2008/09, Kurian said.
The Board is also planning to invest 600 million rupees in six spice parks which will have an integrated operation for cultivation, post-harvest operation, processing of value-added products, he said.
"Spices farmers will be empowered with infrastructure facilities in the spices parks for cleaning, grading and storage of spices, which will result in realising a better price for their produce," Kurian said.
The federal government has approved six spices parks at Sivaganga in Tamil Nadu, Guntur in Andhra Pradesh, Mehasana in Gujarat, Jhalwar in Rajasthan, Idukki in Kerala and Chhindwara in Madhya Pradesh.
The spices park at Jhalwar will be seed spices-focussed, while the park at Idukki will be mainly for cardamom and pepper and the Guntur park will be chilli and turmeric-specific.
The spices park at Chhindwara, which will have a dehydration unit for garlic and garlic products, will be commissioned during July, he said.
The Spices Board is planning to replant small cardamom in 25,000 hectares in Kerala, Karnataka and Tamilnadu, while in case of large cardamom 10,000 hectares will be replanted in Sikkim and West Bengal, he said. In addition to replantation, 25,000 hectares will be brought under rejuvenation programme. India is the world's second largest cardamom producer. Kerala accounts for 70 percent of the country's total production followed by Karnataka and Tamil Nadu.
Cardamom production is expected to be doubled in the next 5-8 years because of the massive replantation and rejuvenation programme, Kurian said.
India produced about 7,700 tonnes of cardamom in 2007/08.
Source: Reuters
"We have fixed a target of $1.3 billion for 2008/09. We expect demand for chilli, pepper and cumin seed to remain strong," V.J. Kurian, chairman, Spices Board, told Reuters in an interview.
The country's spices exports touched an all-time high of $1.1 billion in 2007/08.
Chilli exports reached a record high of 209,000 tonnes during the period due to lower output in other major producing countries like China and Pakistan. Pepper exports also touched new highs of 35,000 tonnes due to short supply in the global market. However, the board has not fixed exports targets for individual spices for 2008/09, Kurian said.
The Board is also planning to invest 600 million rupees in six spice parks which will have an integrated operation for cultivation, post-harvest operation, processing of value-added products, he said.
"Spices farmers will be empowered with infrastructure facilities in the spices parks for cleaning, grading and storage of spices, which will result in realising a better price for their produce," Kurian said.
The federal government has approved six spices parks at Sivaganga in Tamil Nadu, Guntur in Andhra Pradesh, Mehasana in Gujarat, Jhalwar in Rajasthan, Idukki in Kerala and Chhindwara in Madhya Pradesh.
The spices park at Jhalwar will be seed spices-focussed, while the park at Idukki will be mainly for cardamom and pepper and the Guntur park will be chilli and turmeric-specific.
The spices park at Chhindwara, which will have a dehydration unit for garlic and garlic products, will be commissioned during July, he said.
The Spices Board is planning to replant small cardamom in 25,000 hectares in Kerala, Karnataka and Tamilnadu, while in case of large cardamom 10,000 hectares will be replanted in Sikkim and West Bengal, he said. In addition to replantation, 25,000 hectares will be brought under rejuvenation programme. India is the world's second largest cardamom producer. Kerala accounts for 70 percent of the country's total production followed by Karnataka and Tamil Nadu.
Cardamom production is expected to be doubled in the next 5-8 years because of the massive replantation and rejuvenation programme, Kurian said.
India produced about 7,700 tonnes of cardamom in 2007/08.
Source: Reuters
Spice Board Of India To Invest In Gujarat Spice Park
The Spices Board of India will invest Rs 100 million to set up a spice park in Gujarat. The state government has already alloted 100 acres of land at Brahman Wada village, near Unjha in Mehsana district.
Sources close to the development said national as well as multinational companies would invest around Rs 1 billion in the park. Efforts are underway to set up the necessary infrastructure to give a fillip to the park. Unjha is seen as an emerging market for cumin seeds in the world.
During 2007-07, the Spices Board registered exports of 70,125 metric tonne of spices including cumin seeds, corriander, fenugreek, bishop’s weed and til seeds, which increased to 82,100 metric tonne in 2007-08.
In effect, export of seed spices increased from Rs 3.62 billion to Rs 5.0775 billion in 2007-08. In terms of volume, seed spices exports increased 18% whereas in terms of value, it grew 11%.
In future, the board will stress on value addition of spices. To promote this idea, plans are afoot to set up Spice Parks in Kerala, Andhra Pradesh, Tamil Nadu and Uttar Pradesh.
Speaking to ET, Marketing Director of Kochi-based Spices Board S Kanan said, "the farmers of the Mehsana district, where the park is coming up, will have access to several utilities like cleaning, grading, sorting, washing, steam sterilisation, cool grinding, vacuum cleaning, packing and godown utilities for their produce. Apart from this, we will carry out exports from this park for which necessary custom clearances and banking facilities will be made available."
Besides this, farmers will be able to get more money for their produce, since the valuation of spices will be higher.
Mehsana Collector Ajay Bhado said, "Work is in progress for the spice park and the process of allotment of land will be over soon."
Source: Economic Times
Sources close to the development said national as well as multinational companies would invest around Rs 1 billion in the park. Efforts are underway to set up the necessary infrastructure to give a fillip to the park. Unjha is seen as an emerging market for cumin seeds in the world.
During 2007-07, the Spices Board registered exports of 70,125 metric tonne of spices including cumin seeds, corriander, fenugreek, bishop’s weed and til seeds, which increased to 82,100 metric tonne in 2007-08.
In effect, export of seed spices increased from Rs 3.62 billion to Rs 5.0775 billion in 2007-08. In terms of volume, seed spices exports increased 18% whereas in terms of value, it grew 11%.
In future, the board will stress on value addition of spices. To promote this idea, plans are afoot to set up Spice Parks in Kerala, Andhra Pradesh, Tamil Nadu and Uttar Pradesh.
Speaking to ET, Marketing Director of Kochi-based Spices Board S Kanan said, "the farmers of the Mehsana district, where the park is coming up, will have access to several utilities like cleaning, grading, sorting, washing, steam sterilisation, cool grinding, vacuum cleaning, packing and godown utilities for their produce. Apart from this, we will carry out exports from this park for which necessary custom clearances and banking facilities will be made available."
Besides this, farmers will be able to get more money for their produce, since the valuation of spices will be higher.
Mehsana Collector Ajay Bhado said, "Work is in progress for the spice park and the process of allotment of land will be over soon."
Source: Economic Times
Thursday, June 12, 2008
Pepper Futures Fall On Profit Taking
Pepper futures in NMCE settled lower on profit booking. Fresh arrivals from two of the world’s largest producers, Indonesia and Brazil, are expected to start in July. World pepper production is expected to fall during the current year. Vietnam, arrivals are still continuing even though the harvesting season finished by the end of May. According to the Spices Board, total pepper output in India was 50,000 tonnes this year, almost steady compared to last year. While in India, harvesting starts in December and continues to February, the world's second largest producer.
July contract in NMCE traded in the range of Rs. 143.51– Rs. 146.65 and closed at 144.01 (146.50). Combined volume stood at 1402. Open interest increased by 63 to 890. Pepper inventories in the NMCE accredited warehouses stood at 1758 metric tonnes. Spot price in Kochi recorded Rs.14500 per quintal.
Source: Commodity Online
July contract in NMCE traded in the range of Rs. 143.51– Rs. 146.65 and closed at 144.01 (146.50). Combined volume stood at 1402. Open interest increased by 63 to 890. Pepper inventories in the NMCE accredited warehouses stood at 1758 metric tonnes. Spot price in Kochi recorded Rs.14500 per quintal.
Source: Commodity Online
Wednesday, June 11, 2008
Indian Spice Exports Top Rs44billion
India has achieved for the first time foreign exchange worth Rs 44,350.50 billion through export of spices of 444,250 tonnes in the last financial year,compared to Rs 35750.75 billion revenue through export of 373,750 tonnes in 2006-07.
Last year, the Spices Board estimated revenue of Rs 36 billion through exports, but the revenue increased to 44.35 billion.
While the quantity estimated rose to 117 per cent in rupee terms 123 per cent, in Dollar value it jumped up to 126 per cent, Spices Board sources said.
Though the board exports spices to 130 countries, 80 per cent of revenue is received from 20 countries. Of the 4 million tonne production, the country exports only 10 per cent.
Last year, export of Pepper was at a new high. India exported 35,000 tonnes and earned Rs 5.195 billion, while the target was 30,000 tonnes and Rs 4.5 billion respectively.
Source: Business Standard
Last year, the Spices Board estimated revenue of Rs 36 billion through exports, but the revenue increased to 44.35 billion.
While the quantity estimated rose to 117 per cent in rupee terms 123 per cent, in Dollar value it jumped up to 126 per cent, Spices Board sources said.
Though the board exports spices to 130 countries, 80 per cent of revenue is received from 20 countries. Of the 4 million tonne production, the country exports only 10 per cent.
Last year, export of Pepper was at a new high. India exported 35,000 tonnes and earned Rs 5.195 billion, while the target was 30,000 tonnes and Rs 4.5 billion respectively.
Source: Business Standard
Vietnam Pepper Industry 'Must Improve Methods'
The Vietnamese pepper industry must improve its cultivation methods and processing technology to maintain its position as the world's top exporter, the Viet Nam Pepper Association has said.
Vietnam has earned more than US$100 million a year from pepper exports in recent years, exporting its products mainly to Europe, the US and the Middle East.
Several pepper processing plants in the Central Highlands have installed modern processing technology including dehydration and sterilisation systems to ensure food safety and sanitation standards.
According to the Southern Agricultural Scientific and Technical Institute, the country's pepper area has expanded from 3,900ha to 52,000ha in the last two decades. Major pepper growing areas are in Binh Phuoc, Dak Lak, Dong Nai and Phu Quoc.
Despite expansion, scientists said growers needed to gradually replace low-yielding hybrids with new, high-yield ones and apply advanced methods in hybridisation, planting, processing, and post-harvest preservation to improve crop productivity and quality.
The industry has set up crop specialisation areas including the 14,200ha area in Binh Phuoc Province, 8,400ha in Dak Lak Province and 8,100ha area in Ba Ria-Vung Tau Province.
The Viet Nam Pepper Association also urges local pepper farmers to maintain quality and comply with the cultivation planning by the Ministry of Agriculture and Rural Development.
The ministry plans to maintain the pepper area of 50,000ha with an output of 100,000 tonnes a year.
Over the past years, scientists have conducted several projects to improve farming methods, including watering, fertilising and spraying insecticides, to increase the quality of the crop to raise competitiveness on the global market.
Scientists said farmers needed to comply with the ministry's cultivation and processing standards to obtain an average output of 120,000 tonnes and average export revenue of $130 million by 2010 and $280 million in 2020.
Source: VietnamNet
Vietnam has earned more than US$100 million a year from pepper exports in recent years, exporting its products mainly to Europe, the US and the Middle East.
Several pepper processing plants in the Central Highlands have installed modern processing technology including dehydration and sterilisation systems to ensure food safety and sanitation standards.
According to the Southern Agricultural Scientific and Technical Institute, the country's pepper area has expanded from 3,900ha to 52,000ha in the last two decades. Major pepper growing areas are in Binh Phuoc, Dak Lak, Dong Nai and Phu Quoc.
Despite expansion, scientists said growers needed to gradually replace low-yielding hybrids with new, high-yield ones and apply advanced methods in hybridisation, planting, processing, and post-harvest preservation to improve crop productivity and quality.
The industry has set up crop specialisation areas including the 14,200ha area in Binh Phuoc Province, 8,400ha in Dak Lak Province and 8,100ha area in Ba Ria-Vung Tau Province.
The Viet Nam Pepper Association also urges local pepper farmers to maintain quality and comply with the cultivation planning by the Ministry of Agriculture and Rural Development.
The ministry plans to maintain the pepper area of 50,000ha with an output of 100,000 tonnes a year.
Over the past years, scientists have conducted several projects to improve farming methods, including watering, fertilising and spraying insecticides, to increase the quality of the crop to raise competitiveness on the global market.
Scientists said farmers needed to comply with the ministry's cultivation and processing standards to obtain an average output of 120,000 tonnes and average export revenue of $130 million by 2010 and $280 million in 2020.
Source: VietnamNet
Friday, May 30, 2008
Sri Lanka Cinnamon Producers Join Forces
Nine major players in the cinnamon industry have joined forces to form U10 Certified Ceylon Cinnamon (CCC) to promote and develop cinnamon exports.
Chairman of the U10 CCC Dr I.R Ferdinand said certified cinnamon will be the driving product for the future of the industry. U10 has already established a system of quality inspection and certification for nine member factories.
ISO 22000 and HACCP certification are vital factors in entering the international markets. U10's quality enforcement mechanisms will upgrade nine existing peeling centres to ISO 22000 certified factory level.
Director of the U10 CCC, Lal de Silva said this year they target to export 100 metric tonnes of cinnamon under U10 and expect to increase the quantity in the future. "We are optimistic that this target could be achieved since there are valuable orders placed by foreign buyers," Mr de Silva said. "Other cinnamon growers and the exporters also could join this new company and improve cinnamon exports."
As the initial stage, the company will focus on certifying local cinnamon according to international standards and then moving for value addition of local cinnamon such as powered cinnamon, cut cinnamon, cinnamon bark oil and cinnamon health capsules. The company expects to negotiate with international buyers for entering into joint ventures.
Consultant of the U10 CCC, Prof. D.N. Weerasinghe said the demand for cinnamon products is increasing in the international market.
"Today industries such as beverage, liquor, pharmaceutical and perfumery use cinnamon as a raw material. Prices of cinnamon in the international market are also increasing. The local cinnamon industry is still adopting traditional methods for peeling which badly impacts the safety and quality standards. There is a high production cost due to high labour charges in the industry," he said.
"The shortage of peelers is another obstacle in the industry," he said. "There is a lack of knowledge on product diversification of the lower part of the supply chain in the industry. Absence in regulatory support for maintaining standards in the industry and absence of transforming information on Colombo auction prices to growers are some of the issues in the industry," he said.
Sri Lanka produces 13,000 metric tonnes of cinnamon every year, 90% of which is exported mainly to Mexico, US and EU.
Source: Daily News, Sri Lanka
Chairman of the U10 CCC Dr I.R Ferdinand said certified cinnamon will be the driving product for the future of the industry. U10 has already established a system of quality inspection and certification for nine member factories.
ISO 22000 and HACCP certification are vital factors in entering the international markets. U10's quality enforcement mechanisms will upgrade nine existing peeling centres to ISO 22000 certified factory level.
Director of the U10 CCC, Lal de Silva said this year they target to export 100 metric tonnes of cinnamon under U10 and expect to increase the quantity in the future. "We are optimistic that this target could be achieved since there are valuable orders placed by foreign buyers," Mr de Silva said. "Other cinnamon growers and the exporters also could join this new company and improve cinnamon exports."
As the initial stage, the company will focus on certifying local cinnamon according to international standards and then moving for value addition of local cinnamon such as powered cinnamon, cut cinnamon, cinnamon bark oil and cinnamon health capsules. The company expects to negotiate with international buyers for entering into joint ventures.
Consultant of the U10 CCC, Prof. D.N. Weerasinghe said the demand for cinnamon products is increasing in the international market.
"Today industries such as beverage, liquor, pharmaceutical and perfumery use cinnamon as a raw material. Prices of cinnamon in the international market are also increasing. The local cinnamon industry is still adopting traditional methods for peeling which badly impacts the safety and quality standards. There is a high production cost due to high labour charges in the industry," he said.
"The shortage of peelers is another obstacle in the industry," he said. "There is a lack of knowledge on product diversification of the lower part of the supply chain in the industry. Absence in regulatory support for maintaining standards in the industry and absence of transforming information on Colombo auction prices to growers are some of the issues in the industry," he said.
Sri Lanka produces 13,000 metric tonnes of cinnamon every year, 90% of which is exported mainly to Mexico, US and EU.
Source: Daily News, Sri Lanka
China Cuts Import Duties To Curb Inflation
The Chinese government has slashed import duty on coconut oil from 10% to 5%. The commodity was one of a number which saw their tariffs cut this week in a bid by the Chinese to rein in inflation.
China will also temporarily reduce import tariffs on other selected commodities. The import tariff on frozen pork will be cut to 6% from 12%, on soyameal and peanut meal for feedmeal will be reduced to 2% (from 5%) from June 1 to December 31 and on olive oil to 5% from 9% from June 1 to September 30. It will also cut the sliding tariff on imports of high quality cotton that exceed the import quota to 3%-40% from 5%- 40%, effective June 5 to October 5.
The move is likely to have an overall negative sentiment on agricultural commodities. The government has been sparing no efforts to curb inflation. China’s key inflation rate rose 8.5% in April from a year earlier, hovering near 12-year highs.
The import tariff cuts don’t include soya-oil as the market had expected, showing the government’s willingness to protect farmers’ interests as the purchase of newly-harvested rapeseed has just started.
Source: Commodity Online
China will also temporarily reduce import tariffs on other selected commodities. The import tariff on frozen pork will be cut to 6% from 12%, on soyameal and peanut meal for feedmeal will be reduced to 2% (from 5%) from June 1 to December 31 and on olive oil to 5% from 9% from June 1 to September 30. It will also cut the sliding tariff on imports of high quality cotton that exceed the import quota to 3%-40% from 5%- 40%, effective June 5 to October 5.
The move is likely to have an overall negative sentiment on agricultural commodities. The government has been sparing no efforts to curb inflation. China’s key inflation rate rose 8.5% in April from a year earlier, hovering near 12-year highs.
The import tariff cuts don’t include soya-oil as the market had expected, showing the government’s willingness to protect farmers’ interests as the purchase of newly-harvested rapeseed has just started.
Source: Commodity Online
India Targets Ten-Fold Increase In Spice Exports
With the huge feasibility in the field of variety spices cultivation and value added process of the spices crops in the country, India has targeted $10 billion dollar of spices by 2017.
Speaking at an award function organized by Spices Board for honouring exporters and spices farmers for their performance in Exports and Productivity, Union Minister of State for Commerce and Power Jairam Ramesh said the Board needs to elevate the proposed 10 billion dollar exports in the value term as a challenge by 2017.
India has set an all-time record in spices exports in 2007-08 by crossing the $ 1 billion mark in exports.
“In the value added segment, the country need to put nearly 75 percent efforts to achieve the proposed target per year," he said.
In order to catch such high target, the Minister said: "We need to increase the productivity of variety spices by promoting and providing much awareness among the farmers." Spices parks are in such institutions aimed at providing such awareness and guidelines to farmers, he said.
The Spices Board is planning to set up spices parks in different states including Rajasthan, Gujarat, Meghalaya, Assam, Madhypradesh, Tamil Nadu, Karnataka and Kerala. In Kerala, land acquisition for the park is yet to get underway.
The Minister urged the Board to give much importance to non-traditional spice like chilli and mint since these were accounted for 50 percent in the total spices exports rather than traditional spices like cardamom and pepper.
“We have enormous opportunity to retain our lost domination over the spices in the world market by catering value added spices”, he said. The government is also considering electronic auction for pepper to reduce communication gap among farmers and other players in the field, he added.
Source: Commodity Online
Speaking at an award function organized by Spices Board for honouring exporters and spices farmers for their performance in Exports and Productivity, Union Minister of State for Commerce and Power Jairam Ramesh said the Board needs to elevate the proposed 10 billion dollar exports in the value term as a challenge by 2017.
India has set an all-time record in spices exports in 2007-08 by crossing the $ 1 billion mark in exports.
“In the value added segment, the country need to put nearly 75 percent efforts to achieve the proposed target per year," he said.
In order to catch such high target, the Minister said: "We need to increase the productivity of variety spices by promoting and providing much awareness among the farmers." Spices parks are in such institutions aimed at providing such awareness and guidelines to farmers, he said.
The Spices Board is planning to set up spices parks in different states including Rajasthan, Gujarat, Meghalaya, Assam, Madhypradesh, Tamil Nadu, Karnataka and Kerala. In Kerala, land acquisition for the park is yet to get underway.
The Minister urged the Board to give much importance to non-traditional spice like chilli and mint since these were accounted for 50 percent in the total spices exports rather than traditional spices like cardamom and pepper.
“We have enormous opportunity to retain our lost domination over the spices in the world market by catering value added spices”, he said. The government is also considering electronic auction for pepper to reduce communication gap among farmers and other players in the field, he added.
Source: Commodity Online
Thursday, May 29, 2008
AgriNurture Buys World's Largest DC Plant
AgriNurture Inc., an agro-commercial company and exporter, is taking control and management of Peter Paul Philippines Corp., the world’s biggest producer of desiccated coconut.
“Talks are under way for the buyout, if I may call it a buyout. The owners have already agreed in principle to relinquish 51 percent of the company to ANI. We certainly hope to forge a deal before the third quarter is over,” said Antonio Tiu, president of AgriNurture. He said the company had the option to acquire the rest of Peter Paul’s shares later once the purchase for the 51 percent stake is finalized. “Right now, we’re finalizing the acquisition. We just have to push for our planned IPO so we can secure the deal,” Mr Tiu said.
AgruNurture plans to raise P1.2 billion from the equities market. The company earlier projected about P800 million to P1 billion in proceeds from the IPO. “But as we got hold of the audited financial statement, as we talked to financial investors and as we went on with the validation on projections, we’re looking at P1 to P1.2 billion,” said Janssen Ceo, product manager and spokesman for the company. AgriNurture plans to offer 70 percent of the IPO shares to local investors and the rest to foreign investors. It is initially looking at price of about P25 to P30 per share. The company said it would list its shares in the local bourse despite volatile conditions to raise funds for the expansion of its farming division and pursue plans for more brand acquisitions.
The acquisition price of Peter Paul was not disclosed.
Peter Paul’s plant, a 13-hectare facility in Barrio Pahinga, Candelaria, Quezon, is capable of producing 22,000 metric tons per year of desiccated coconut for domestic consumption and export to countries like the US and China. Once a wholly-owned subsidiary of US-based chocolate confectionary Peter Paul Candy Manufacturing, Peter Paul Philippines, now locally-owned, has expanded its operations to include buko water extraction, coco milk and coco cream manufacture, virgin coconut oil, coconut flour and fibre, copra, copra cake, coconut oil, paring cake, paring oil and other residual products.
AgriNurture supplies 70 percent of SM Supermarket and SM Hypermarts’ fresh fruits and vegetable requirement under the SM Bonus brand, through contract growing arrangements and from its own output.
Source: Manila Standard
“Talks are under way for the buyout, if I may call it a buyout. The owners have already agreed in principle to relinquish 51 percent of the company to ANI. We certainly hope to forge a deal before the third quarter is over,” said Antonio Tiu, president of AgriNurture. He said the company had the option to acquire the rest of Peter Paul’s shares later once the purchase for the 51 percent stake is finalized. “Right now, we’re finalizing the acquisition. We just have to push for our planned IPO so we can secure the deal,” Mr Tiu said.
AgruNurture plans to raise P1.2 billion from the equities market. The company earlier projected about P800 million to P1 billion in proceeds from the IPO. “But as we got hold of the audited financial statement, as we talked to financial investors and as we went on with the validation on projections, we’re looking at P1 to P1.2 billion,” said Janssen Ceo, product manager and spokesman for the company. AgriNurture plans to offer 70 percent of the IPO shares to local investors and the rest to foreign investors. It is initially looking at price of about P25 to P30 per share. The company said it would list its shares in the local bourse despite volatile conditions to raise funds for the expansion of its farming division and pursue plans for more brand acquisitions.
The acquisition price of Peter Paul was not disclosed.
Peter Paul’s plant, a 13-hectare facility in Barrio Pahinga, Candelaria, Quezon, is capable of producing 22,000 metric tons per year of desiccated coconut for domestic consumption and export to countries like the US and China. Once a wholly-owned subsidiary of US-based chocolate confectionary Peter Paul Candy Manufacturing, Peter Paul Philippines, now locally-owned, has expanded its operations to include buko water extraction, coco milk and coco cream manufacture, virgin coconut oil, coconut flour and fibre, copra, copra cake, coconut oil, paring cake, paring oil and other residual products.
AgriNurture supplies 70 percent of SM Supermarket and SM Hypermarts’ fresh fruits and vegetable requirement under the SM Bonus brand, through contract growing arrangements and from its own output.
Source: Manila Standard
Indian Exporters Source Supplies From Vietnam
Indian exporters with exposure in black pepper are these days going slow in picking up spices from local mandis. Instead, they prefer to import pepper from Vietnam for re-exports either in raw form or value-added form.
Precisely speaking, they are keen to replenish their stocks by importing the ASTA-grade Vietnamese pepper of the 550 ml variety, which has climbed down $100 to $3,200 per tonne over the past 15 days. At this rate, its landed price proves to be cheaper than the Indian black pepper, which too reacted to lower off-take by domestic traders has declined Rs 200 to stay put at nearly Rs 15,000 per quintal on Tuesday.
Vietnam, with more than 1 million tonnes (mt) of black pepper production has always been cheaper than pepper originating from other countries. But this time the bearish sentiment is holding sway over the Vietnamese pepper following heavy selling of the spice by its farmers. Unlike Indian farmers, black pepper growers in Vietnam do not wish to hold stocks. Instead, there is a tendency to quickly dispose off stocks to clear interest rate payment on farm loans and charges for storage at warehouses, which together roughly adds up to 24%.
Tracking the downswing in the price of Vietnamese pepper, which influences the global pepper market in a large way, Indian pepper prices have shed Rs 200 per quintal in the past three days. Lower off-take by exporters along with traders has also imparted to the downtrend. Even then the FOB value of Indian pepper, especially the superior grade Malabar grade-1, now stands at $3,800 per tonne whereas Vietnam’s ASTA-grade pepper is being quoted at $3,200 per tonne.
While the ASTA-grade pepper originating from Indonesia and Brazil are hovering around $3,900 per tonne and $3,500 tonne per tonne, respectively.
Notwithstanding the declining trend in Vietnam pepper, buyers in the global market, which want to buy quality pepper, are closely watching the Indian pepper futures. With the recent decline in Indian pepper price in local markets, overseas buyers prefer to wait a while before placing new contracts. But traders feel that Indian pepper price may start rising again as domestic buying is expected to improve in the coming days with the opportunity looming large in arbitrage between spot and futures prices.
Source: Economic Times
Precisely speaking, they are keen to replenish their stocks by importing the ASTA-grade Vietnamese pepper of the 550 ml variety, which has climbed down $100 to $3,200 per tonne over the past 15 days. At this rate, its landed price proves to be cheaper than the Indian black pepper, which too reacted to lower off-take by domestic traders has declined Rs 200 to stay put at nearly Rs 15,000 per quintal on Tuesday.
Vietnam, with more than 1 million tonnes (mt) of black pepper production has always been cheaper than pepper originating from other countries. But this time the bearish sentiment is holding sway over the Vietnamese pepper following heavy selling of the spice by its farmers. Unlike Indian farmers, black pepper growers in Vietnam do not wish to hold stocks. Instead, there is a tendency to quickly dispose off stocks to clear interest rate payment on farm loans and charges for storage at warehouses, which together roughly adds up to 24%.
Tracking the downswing in the price of Vietnamese pepper, which influences the global pepper market in a large way, Indian pepper prices have shed Rs 200 per quintal in the past three days. Lower off-take by exporters along with traders has also imparted to the downtrend. Even then the FOB value of Indian pepper, especially the superior grade Malabar grade-1, now stands at $3,800 per tonne whereas Vietnam’s ASTA-grade pepper is being quoted at $3,200 per tonne.
While the ASTA-grade pepper originating from Indonesia and Brazil are hovering around $3,900 per tonne and $3,500 tonne per tonne, respectively.
Notwithstanding the declining trend in Vietnam pepper, buyers in the global market, which want to buy quality pepper, are closely watching the Indian pepper futures. With the recent decline in Indian pepper price in local markets, overseas buyers prefer to wait a while before placing new contracts. But traders feel that Indian pepper price may start rising again as domestic buying is expected to improve in the coming days with the opportunity looming large in arbitrage between spot and futures prices.
Source: Economic Times
Sri Lanka Tea Shines In Macao
Sri Lanka, the largest producer of orthodox black tea in the world, captured the interest of a large number of visitors to the Macau Tea Expo held from 23-25 May at the new Coati Strip Convention and Exhibition Centre in Macao.
Sri Lanka’s participation was organised by the Commercial Section of the Embassy of Sri Lanka in China, together with the Tea Promotional Unit of the Sri Lanka Tea Board in Japan.
This was the first time that Sri Lanka participated at an exhibition in Macau - dubbed the Special Administrative Region (SAR) of leisure and entertainment. The Sri Lanka Tea sector could not ask for a better timing than this to participate at a Tea expo in Macau especially at a moment when the SAR Government is planning to accelerate the development of the convention and exhibition industry. The inaugural effort yielded high expectations for Sri Lanka Tea in one of the best tourist attractions in Asia that has an annual arrival of more than 21 million visitors.
Sri Lanka participated with a display of a variety of ‘Ceylon Tea’ from well known tea brands such as Watawala, Mabroc, Stassen, Mlesna ,Impra, Easwaran Brothers, Ranfer Hyson’s Sinbad, Jafferjee etc and a huge demand and enthusiasm was shown by the visitors. Visitors to the exhibition were fascinated with the value added Ceylon Tea such as Earl Gray, Lemon, Apple, Peach, Mango, Strawberry, and Mint and spice flavours such as cardamom, cinnamon and clove. It was a novel experience for many new visitors to sample the distinct taste of Ceylon Tea coming from the six agro-climatic districts in which Ceylon tea is grown.
In a new approach the Embassy, together with the Tea Promotional Unit of the Sri Lanka Tea Board in Japan, has been promoting Ceylon Tea on a large scale on mainland China which yielded an extraordinary growth rate of more than 70% last year. The Macau expo was another effort to expand the market in the special Administrative Regions of China. The exhibitors were of the view that this event was one of the best organized and a well-timed effort, taking into consideration the Macau‘s free port status. The exhibitors received many encouraging inquiries from buyers and agents of Tea in Macau and other neighbouring provinces of mainland China during the three days of the expo.
An Asia-Africa Tea Meeting was also held during the Expo where the Commercial Counsellor made a presentation on the Sri Lanka Tea Industry attended by Ambassadors and Commercial Counsellors of Tea Exporting Countries and high officials of China Tea Marketing Association.
The event also provided plenty of opportunities to strengthen cooperation between Sri Lanka and Macau in the fields of trade and investment. Sri Lankan officials also had a fruitful meeting with the Acting President and Executive Director and other high officials of the Macau Trade and Investment Promotion institute (IPIM) during the fair. As a result of this meeting, the IPIM agreed to sign a memorandum of understanding with the trade promotional agency in Sri Lanka and also extended an invitation to Sri Lanka for the 13th Macau International Trade and Investment Promotion Fair and Asian Fashion Fair. Further, the IPIM agreed to provide space in the Monthly News Letter and the web site for Sri Lanka Trade and Investment leads.
With an annual tourist arrival recording a staggering 21 million and an economic growth rate of 28% achieving in the first half of the year 2007, the economic environment of Macau presents a window of opportunities for Sri Lankan products such as Tea, Gems and jewellery, Handicraft, Spices and Herbal Spa Products.
The organizers of the Tea Expo, China Tea Marketing Association and the Macau Trade and Investment Promotion Institute, under the auspices of the Macau SAR Government carried out the task to perfection, winning the hearts of all the Sri Lankan exhibitors and the officials for their sheer dedication and support extended during the fair.
Source: Daily Mirror, Sri Lanka
Sri Lanka’s participation was organised by the Commercial Section of the Embassy of Sri Lanka in China, together with the Tea Promotional Unit of the Sri Lanka Tea Board in Japan.
This was the first time that Sri Lanka participated at an exhibition in Macau - dubbed the Special Administrative Region (SAR) of leisure and entertainment. The Sri Lanka Tea sector could not ask for a better timing than this to participate at a Tea expo in Macau especially at a moment when the SAR Government is planning to accelerate the development of the convention and exhibition industry. The inaugural effort yielded high expectations for Sri Lanka Tea in one of the best tourist attractions in Asia that has an annual arrival of more than 21 million visitors.
Sri Lanka participated with a display of a variety of ‘Ceylon Tea’ from well known tea brands such as Watawala, Mabroc, Stassen, Mlesna ,Impra, Easwaran Brothers, Ranfer Hyson’s Sinbad, Jafferjee etc and a huge demand and enthusiasm was shown by the visitors. Visitors to the exhibition were fascinated with the value added Ceylon Tea such as Earl Gray, Lemon, Apple, Peach, Mango, Strawberry, and Mint and spice flavours such as cardamom, cinnamon and clove. It was a novel experience for many new visitors to sample the distinct taste of Ceylon Tea coming from the six agro-climatic districts in which Ceylon tea is grown.
In a new approach the Embassy, together with the Tea Promotional Unit of the Sri Lanka Tea Board in Japan, has been promoting Ceylon Tea on a large scale on mainland China which yielded an extraordinary growth rate of more than 70% last year. The Macau expo was another effort to expand the market in the special Administrative Regions of China. The exhibitors were of the view that this event was one of the best organized and a well-timed effort, taking into consideration the Macau‘s free port status. The exhibitors received many encouraging inquiries from buyers and agents of Tea in Macau and other neighbouring provinces of mainland China during the three days of the expo.
An Asia-Africa Tea Meeting was also held during the Expo where the Commercial Counsellor made a presentation on the Sri Lanka Tea Industry attended by Ambassadors and Commercial Counsellors of Tea Exporting Countries and high officials of China Tea Marketing Association.
The event also provided plenty of opportunities to strengthen cooperation between Sri Lanka and Macau in the fields of trade and investment. Sri Lankan officials also had a fruitful meeting with the Acting President and Executive Director and other high officials of the Macau Trade and Investment Promotion institute (IPIM) during the fair. As a result of this meeting, the IPIM agreed to sign a memorandum of understanding with the trade promotional agency in Sri Lanka and also extended an invitation to Sri Lanka for the 13th Macau International Trade and Investment Promotion Fair and Asian Fashion Fair. Further, the IPIM agreed to provide space in the Monthly News Letter and the web site for Sri Lanka Trade and Investment leads.
With an annual tourist arrival recording a staggering 21 million and an economic growth rate of 28% achieving in the first half of the year 2007, the economic environment of Macau presents a window of opportunities for Sri Lankan products such as Tea, Gems and jewellery, Handicraft, Spices and Herbal Spa Products.
The organizers of the Tea Expo, China Tea Marketing Association and the Macau Trade and Investment Promotion Institute, under the auspices of the Macau SAR Government carried out the task to perfection, winning the hearts of all the Sri Lankan exhibitors and the officials for their sheer dedication and support extended during the fair.
Source: Daily Mirror, Sri Lanka
Tuesday, May 27, 2008
India Rice Export Ban To Remain In Force
India will not ease curbs on rice exports despite a record crop, a top official said on Tuesday. "There is no proposal to ease a ban on rice exports," Commerce Secretary Gopal Pillai told reporters.
India, like other Asian rice exporters, banned exports of non-basmati rice in March, after a series of earlier partial restrictions, in a bid to boost supplies and contain inflation that is at 3-½ year highs. However, a panel of ministers was considering a proposal to sell small quantities of rice to some countries which have made requests to India at diplomatic levels, he said.
"The only concession which the empowered group of ministers will look at is whether some countries, especially African countries which have made some requests ... for giving them small quantities of rice for meeting their immediate needs," he said.
Food Secretary T. Nand Kumar told Reuters in an interview this month that India would decide by June whether to sell rice to some neighbouring states that have asked the South Asian nation to resume shipments.
The decision of India, the second-biggest rice exporter in 2007, to ban non-basmati rice exports and to curb sales of the superior basmati variety, triggered protectionist measures by other leading producers to secure supplies. The curbs trebled benchmark Thai prices. Prospects of a good harvest in India and some other countries have softened prices, prompting Cambodia to lift a ban on rice shipments it imposed two months ago, the first major Asian exporter to roll back such curbs.
Source: Reuters
India, like other Asian rice exporters, banned exports of non-basmati rice in March, after a series of earlier partial restrictions, in a bid to boost supplies and contain inflation that is at 3-½ year highs. However, a panel of ministers was considering a proposal to sell small quantities of rice to some countries which have made requests to India at diplomatic levels, he said.
"The only concession which the empowered group of ministers will look at is whether some countries, especially African countries which have made some requests ... for giving them small quantities of rice for meeting their immediate needs," he said.
Food Secretary T. Nand Kumar told Reuters in an interview this month that India would decide by June whether to sell rice to some neighbouring states that have asked the South Asian nation to resume shipments.
The decision of India, the second-biggest rice exporter in 2007, to ban non-basmati rice exports and to curb sales of the superior basmati variety, triggered protectionist measures by other leading producers to secure supplies. The curbs trebled benchmark Thai prices. Prospects of a good harvest in India and some other countries have softened prices, prompting Cambodia to lift a ban on rice shipments it imposed two months ago, the first major Asian exporter to roll back such curbs.
Source: Reuters
Monday, May 26, 2008
Sri Lanka To Import Copra
Sri Lanka is to import copra to feed the country's oil mills which are facing high prices and raw material shortfalls, a senior minister said.
The cabinet of ministers approved the import of 45,000 tonnes of metric tonnes of copra to the country following a request made by plantation industries minister D M Jayaratne to increase coconut oil production amidst an increasing trend to adulterate coconut oil with palm oil and other types of oil, he said.
Sri Lanka's coconut prices have been rising along with high domestic inflation which was over 25 percent in April.
Sri Lanka restricts the import of raw nuts to prevent disease entering the country.
The island's coconut product exporters - including those making desiccated coconut - have called on the government to cut import duties on coconut oil to free more nuts for their industries.
Sri Lanka has been trying to import various products including rice, in a bid to reduce inflation which is lower in the rest of the world than in the island.
Source: Lanka Business Online
The cabinet of ministers approved the import of 45,000 tonnes of metric tonnes of copra to the country following a request made by plantation industries minister D M Jayaratne to increase coconut oil production amidst an increasing trend to adulterate coconut oil with palm oil and other types of oil, he said.
Sri Lanka's coconut prices have been rising along with high domestic inflation which was over 25 percent in April.
Sri Lanka restricts the import of raw nuts to prevent disease entering the country.
The island's coconut product exporters - including those making desiccated coconut - have called on the government to cut import duties on coconut oil to free more nuts for their industries.
Sri Lanka has been trying to import various products including rice, in a bid to reduce inflation which is lower in the rest of the world than in the island.
Source: Lanka Business Online
Indian Cardamom Production To Double In Four Years
Indian cardamom production is likely to double within four years to 24,000 tonne, Spices Board chairman VJ Kurian said. The massive re-plantation and rejuvenation exercise undertaken by the board would yield the result in four years, he said.
“The board is spending Rs 122 crore (for four years), out of which Rs 50 crore will be used in the state of Kerala alone,” he said. “Farmers are positively reacting to the scheme and the results are encouraging,” he added.
The total area to be replanted is 28,000 hectares, of which 10,000 hectares is in Kerala and Tamil Nadu and 18,000 hectares in Karnataka. About 15,000 hectares will be rejuvenated in Kerala and Tamil Nadu.
Indian cardamom production touched peak of 12,540 tonne in 2005-06 and dropped to less than 8,000 in 2007-08 after being devastated by erratic rains in the producing region.
The Board has also planned for the marketing of the increased output and is likely to concentrate on the nutraceutical benefits of cardamom to push more exports, Kurian said.
Spices Board will also establish a common facility centre in Idukki district for cardamom farmers, board sources said. Board has identified 12 acres of land in Kuttady, near Vandanmedu for the centre, which will have facilities for drying, grading and packing of cardamom.
Source: Financial Express
“The board is spending Rs 122 crore (for four years), out of which Rs 50 crore will be used in the state of Kerala alone,” he said. “Farmers are positively reacting to the scheme and the results are encouraging,” he added.
The total area to be replanted is 28,000 hectares, of which 10,000 hectares is in Kerala and Tamil Nadu and 18,000 hectares in Karnataka. About 15,000 hectares will be rejuvenated in Kerala and Tamil Nadu.
Indian cardamom production touched peak of 12,540 tonne in 2005-06 and dropped to less than 8,000 in 2007-08 after being devastated by erratic rains in the producing region.
The Board has also planned for the marketing of the increased output and is likely to concentrate on the nutraceutical benefits of cardamom to push more exports, Kurian said.
Spices Board will also establish a common facility centre in Idukki district for cardamom farmers, board sources said. Board has identified 12 acres of land in Kuttady, near Vandanmedu for the centre, which will have facilities for drying, grading and packing of cardamom.
Source: Financial Express
Sunday, May 25, 2008
India Spice Exports Exceeds $US1billion
India’s spices export has crossed $1 billion in 2007-08 registering an increase of 19% in volume, 24% in rupee value and 39% in dollar terms.
During the year, a total of 444,250 tonnes of spices and spice products valued at Rs.4,435.50 crore ($101.80 million) were exported from the country as against 373,750 tonnes valued at Rs.3,575.75 crore ($792.95 million) the previous year.
V.J. Kurien, Chairman of the Spices Board, said at a press meet that the spice exports in 2007-08 had also far exceeded the target fixed for the year both in volume and value terms.
Against the target of 380,000 tonnes valued at Rs.3,600 crore ($875 million) fixed for the year, the achievement was 117% in volume, 123% in rupee value and 126% in dollar value.
“The board has fixed an export target of $1.2 billion for the year 2008-09 and we are optimistic to sustain the same growth,” he added.
During 2007-08, the export of pepper, chilli, seed spices like coriander, cumin, fennel, fenugreek and other seeds showed substantial growth both in volume and value compared to last year. The export of value-added products like curry powder, mint products and spice oils and oleoresins had also shown impressive growth during the period.
However, export of some of the items like cardamom (large) ginger, turmeric, celery, garlic and nutmeg and mace fell short of last year’s performance. For vanilla, because of competitive price advantage, the export volume increased substantially by 60% in 2007-08. However, the value decreased by 11% due to low unit value when compared to last year.
The export of chilli from India reached an all-time high of 209,000 tonnes valued at Rs.1,097.50 crore accounting for a share of 47% in volume and 25% in value of the total export of spices and spice products from the country.
The stringent quality measures implemented by the Spices Board made Indian chilli more acceptable in the international market. Moreover, the lower output by major producers like China, Pakistan also helped India to achieve performance, Mr. Kurien said, adding that the board had also suggested e-auction in chilli at Guntur to fetch better prices for farmers.
The export of ginger declined both in terms of quantity and value as compared to 2006-07. The decline was 11% in volume and 30% in value.
The domestic price of ginger, which was in the range of Rs.45 to Rs.65 per kg in 2006-07, went up to Rs. 80 per kg in March 2008. The higher prices made Indian ginger uncompetitive in the international market.
Source: The Hindu
During the year, a total of 444,250 tonnes of spices and spice products valued at Rs.4,435.50 crore ($101.80 million) were exported from the country as against 373,750 tonnes valued at Rs.3,575.75 crore ($792.95 million) the previous year.
V.J. Kurien, Chairman of the Spices Board, said at a press meet that the spice exports in 2007-08 had also far exceeded the target fixed for the year both in volume and value terms.
Against the target of 380,000 tonnes valued at Rs.3,600 crore ($875 million) fixed for the year, the achievement was 117% in volume, 123% in rupee value and 126% in dollar value.
“The board has fixed an export target of $1.2 billion for the year 2008-09 and we are optimistic to sustain the same growth,” he added.
During 2007-08, the export of pepper, chilli, seed spices like coriander, cumin, fennel, fenugreek and other seeds showed substantial growth both in volume and value compared to last year. The export of value-added products like curry powder, mint products and spice oils and oleoresins had also shown impressive growth during the period.
However, export of some of the items like cardamom (large) ginger, turmeric, celery, garlic and nutmeg and mace fell short of last year’s performance. For vanilla, because of competitive price advantage, the export volume increased substantially by 60% in 2007-08. However, the value decreased by 11% due to low unit value when compared to last year.
The export of chilli from India reached an all-time high of 209,000 tonnes valued at Rs.1,097.50 crore accounting for a share of 47% in volume and 25% in value of the total export of spices and spice products from the country.
The stringent quality measures implemented by the Spices Board made Indian chilli more acceptable in the international market. Moreover, the lower output by major producers like China, Pakistan also helped India to achieve performance, Mr. Kurien said, adding that the board had also suggested e-auction in chilli at Guntur to fetch better prices for farmers.
The export of ginger declined both in terms of quantity and value as compared to 2006-07. The decline was 11% in volume and 30% in value.
The domestic price of ginger, which was in the range of Rs.45 to Rs.65 per kg in 2006-07, went up to Rs. 80 per kg in March 2008. The higher prices made Indian ginger uncompetitive in the international market.
Source: The Hindu
Indian Pepper Futures Rise Sharply
Indian pepper futures rose sharply on Friday on low arrivals in the physical market and firm export demand. Both the June and July contracts hit the initial two percent daily upper price limit.
"Indian prices are now cheaper than other major exporting countries," said an analyst with Angel Commodities Broking Pvt Ltd. A weak rupee has brought down Indian prices below Vietnam and Indonesia, she said.
The Indian rupee recently touched 13-month low against the U.S. dollar. It fell 8.8 percent since January and lost 1.6 percent in the last one week.
Pepper exports touched new highs in 2007/08 and rose 21.7 percent to 35,000 tonnes, according to the Spices Board. India, the second largest pepper producer and exporter after Vietnam, exports mainly to U.S., UK, Italy, Germany and Canada.
Supply situation is also tight in the physical market as arrivals have almost dried up, said Shardul Sharma, an analyst with Sharekhan Commodities Pvt Ltd.
In India, pepper harvesting starts in December and ends in February.
Source: Reuters
Spices at www.cradlebay.co.uk
"Indian prices are now cheaper than other major exporting countries," said an analyst with Angel Commodities Broking Pvt Ltd. A weak rupee has brought down Indian prices below Vietnam and Indonesia, she said.
The Indian rupee recently touched 13-month low against the U.S. dollar. It fell 8.8 percent since January and lost 1.6 percent in the last one week.
Pepper exports touched new highs in 2007/08 and rose 21.7 percent to 35,000 tonnes, according to the Spices Board. India, the second largest pepper producer and exporter after Vietnam, exports mainly to U.S., UK, Italy, Germany and Canada.
Supply situation is also tight in the physical market as arrivals have almost dried up, said Shardul Sharma, an analyst with Sharekhan Commodities Pvt Ltd.
In India, pepper harvesting starts in December and ends in February.
Source: Reuters
Spices at www.cradlebay.co.uk
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