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
Thursday, June 26, 2008
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
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