MONTHLY REPORTAUGUST 2021

AGRI PRODUCTUPDATE

PORT ANALYSIS 3

MARKET OVERVIEW AND TRENDS 7

KEY HIGHLIGHTS 8

Disclaimer,

The information contained in this market update is drawn from wide range of newspapers, business and trade magazines, government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected to make their own independent evaluation and verification of information for their use. While all information contained in this report are believed to be correct, the editors of this compilation or J. M. Baxi & Co. do not guarantee the quotes or other data and the same is provided only in good faith.

TABLE OF CONTENT

PORT ANALYSIS

3

Agri-Product Traffic at Indian Ports (Qty in Metric Tonnes)Port Name Apr- June 21 Apr- June 20 Variance Y - o - Y

ANGRE 84096 37500 46596GANGAVARAM 91000 0 91000HALDIA 19000 0 19000HAZIRA 254003 54071 199932JAIGAD 395299 223700 171599KAKINADA 977432 268650 708782KANDLA 1585659 1264311 321348KOLKATA 39911 0 39911KRISHNAPATNAM 106620 0 106620MANGALORE 46400 23500 22900MUMBAI 107806 36000 71806MUNDRA 104446 83079 21367TUNA 72126 274780 -202654TUTICORIN 157950 113200 44750VISAKHAPATNAM 366800 0 366800Grand Total 4408548 2378791 2029757

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AGRI- PRODUCT TRAFFIC AT INDIAN PORTS -JULY 2021 (Qty IN Metric Tonnes)

Port Name Cargo Total

ANGRE RAW SUGAR 43000CHENNAI YELLOW PEAS 9500DIAMOND HARBOUR LENTILS 16580GANGAVARAM RICE IN BAG 10000HAZIRA RAW SUGAR 71333JAIGAD RAW SUGAR 76874KAKINADA RICE IN BAG 237570

SUGAR 14750KANDLA RAPE SEED MEAL 31000

RAW SUGAR 61490RICE IN BAG 162100

SUGAR 30000SUGAR BAG 36500

WHEAT 94700KRISHNAPATNAM RICE IN BAG 43300MANGALORE RAW SUGAR 23900TUTICORIN COPRA EXPELLER CAKE 7700

RAW SUGAR 14810VISAKHAPATNAM LENTILS 10000

MAIZE 80000RICE IN BAG 92700

Grand Total 1167807

EXPORTERS OF AGRI PRODUCTS JULY- 2021 (Qty IN Metric Tonnes)

EXPORTERS CARGO QTY

AGRO CORPN. INTL. PTE LTD. MAIZE 50000

BAGADIA BROTHERS RICE IN BAG 10000

EURO EXPORTERS PVT. LTD. RICE IN BAG 25000

GARDEN COURT DISCILEREIS PVT. LTD. RAW SUGAR 43890

GARDEN COURT DISTILLERIES PVT. LTD. RAW SUGAR 22874

INDIAN SUGAR EXIM CORPN. LTD. RAW SUGAR 23900

ITC LTD. RICE IN BAG 29000

LOUIS DREYFUS INDIA PVT. LTD.

RAW SUGAR 60600

SUGAR 14750

MURALI MOHANA RICE MILL RICE IN BAG 6000

NATIONAL AGR. CO OP. FED. OF INDIA RICE IN BAG 17700

OLAM EXPORTS (I) KOLLAR RICE IN BAG 46850

PATTABHI AGRO FOODS RICE IN BAG 37500

RUHATIYA SPINNERS PVT. LTD. RICE IN BAG 23300

SAILOR EXPORTS CO. RICE IN BAG 20000

SAKUMA EXPORTS RAW SUGAR 54000

SARALA FOODS PVT. LTD. RICE IN BAG 56500

SATYAM BALAJEE RICE INDUS. PVT. LTD. RICE IN BAG 20970

SHANTHI POULTRY FIRM COPRA EXPELLER CAKE 7700

SRI LALITHA ENTERPRISES INDUS. PVT. LTD. RICE IN BAG 23500

SRI SAINATH INDUSTRIES LTD. RICE IN BAG 72250

TATA INTL. LTD. RAW SUGAR 14810

VITERRA BV LENTILS 10000

VITTERA BV LENTILS 16580

COUNTRY -WISE EXPORTS OF AGRI PRODUCTS JULY- 2021 (Qty IN Metric Tonnes)

COUNTRY CARGO QTY

BANGLADESH RAW SUGAR 23900

RICE IN BAG 17700

BENIN RICE IN BAG 195150

INDONESIA RAW SUGAR 196174

RICE IN BAG 25000

IVORY COAST RICE IN BAG 62250

LIBERIA RICE IN BAG 30970

SAUDI ARABIA SUGAR 14750

SRI LANKA RICE IN BAG 21000

VIETNAM MAIZE 50000

RICE IN BAG 20000

WEST AFRICA RICE IN BAG 26500

NOTE: Above Statistics is drawn from data received from Port and Custom Authorities, while all information is believed to be correct, the editors of this compilation or J. M. Baxi & Co. do not guarantee the authenticity of data.

KEY HIGHLIGHTS

» Govt cuts basic import duty on masur dal to zero to tame prices

» Pulses production down in Madhya Pradesh from 2017-18

» Mitsui invests $4.1 million in Indian biomass logistic company

» Rice exports expected to be lower in FY22 compared to FY21

» Anti-GMO coalition opposes decision to import GM Soyameal

» Foodgrain output scales a new peak in 2020-21 season

» India’s sugar exports touch 5.11 million tonnes so far this year: AISTA

MARKET OVERVIEW

AND TRENDS

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AGRI TRADE

Govt cuts basic import duty on masur dal to zero to tame prices

» The zero import duty and the reduced AIDC will come into effect from 2nd August

As part of its effort to rein-in inflation, the Finance Ministry cut to zero the import duty on masur dal. However, the lentil will attract 10 per cent Agriculture Infrastructure and Development Cess (AIDC). The Centre cut the cess on all lentils to 10 per cent from 20 per cent as part of its effort to control the rising prices. According to the notification, tabled by Finance Minister Nirmala Sitharaman in both Houses of Parliament, the basic Customs duty has been lowered to nil from 10 per cent on lentils originating in or exported from countries other than the US. Imports from the US will attract a basic Customs duty of 20 per cent against the current rate of 30 per cent. The Centre has imposed duty on lentils from the US as Washington has been pressuring India to scrap the 2 per cent digital tax on trade and commerce by non-resident e-commerce firms, a trade analyst said. The move to reduce the import comes on the heels of retail prices of not just lentils but most pulses such as tur (pigeon pea), urad (black matpe) and moong (green gram) ruling high. Last week, the Centre reduced the stock limit on tur, masur, urad and chana (gram) till October 31. At the same time, to enhance the domestic availability and smoothen the inflow of pulses, the Centre on May 15 moved tur, urad and moong from the restricted to the

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free list category of imports till October 31. New Delhi-based trade analyst S Chandrasekharan said the latest move “ will balance the pulses basket since moong is a good protein supplement.” Currently, the retail inflation is ruling at over 6 per cent, higher than the RBI’s upper comfort level.

Source: The Hindu Business Line

Pulses production down in Madhya Pradesh from 2017-18

» However, Maharashtra, Rajasthan, Karnataka and Gujarat showed an increase in pulses production

Production of pulses has almost halved in Madhya Pradesh over the last few years, if the figures provided in the Lok Sabha, are any indication. The production has come down from 81.11 lakh tonnes (lt) in 2017-18 to 43.64 lt in 2020-21 (as per third advance estimates) in Madhya Pradesh. It stood at 60.45 lt and 41.08 lt in 2018-19 and 2019-20, respectively However, other major states such as Maharashtra, Rajasthan, Karnataka and Gujarat showed an increase in the production of pulses during the period between 2016-17 and 2020-21 The production of pulses increased from 37.68 lt in 2016-17 to 42.24 lt during 2020-21 in Maharashtra, and from 31.81 lt in 2016-17 to 48.21 lt during 2020-21 in Rajasthan. In Karnataka, pulses production went up from 17.37 lt in 2016-17 to 21.7 lt in 2020-21. The production of pulses doubled in Gujarat from 8.17 lt in 2016-17 to 17.59 lt in 2020-21. Replying to a query in Lok Sabha on Tuesday, Narendra Singh Tomar, Union Minister for Agriculture and Farmers Welfare, said the production of pulses has been increasing during the last three year -- from 2018-19 to 2020-21. The production went up from 220.75 lt in 2018-19 to 255.75 lt in 2020-21. To increase the production of pulses the National Food Security Mission (NFSM) - Pulses programme is being implemented in 644 districts of 28 states and Union Territories (UTs) of Jammu and Kashmir and Ladakh Under NFSM (pulses) programme, the Government provides support for breeder seed production of pulses, and 150 seed hubs have been created at ICAR institutes, state agriculture universities and krishi vigyan kendras for increasing certified seeds production of pulses. A new scheme ‘Intercropping of pulses with sugarcane’ was implemented in Bihar, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand during 2018-19 and 2019- 20, he said. Apart from this, special action plan was implemented during 2019-20 for increasing pulses productivity, and rice fallow areas were targeted in 11 states under NFSM. In order to protect the consumer from price rise, the Government is implementing Price Stabilization Fund to help moderate the volatility in prices of pulses by releasing stock from the buffer.

Chilli varietyTo another query on whether ‘Armour chilli’ seeds have high yield and disease resistance capability compared to other varieties of chilli seeds, Tomar said Amour chilli is a high yielding chilli F1 hybrid with tolerance to leaf curl virus (LCV). Armour chilli is the name given to an F1 hybrid chilli developed by a private company registered in Telangana State. Armour is preferred for pungency and fruit drying quality. It is early maturing, has good yield potential and high disease tolerance against LCV. Fruits are large, straight, green on fresh and attractive red at ripe maturity. However, he said, the Bengaluru-basd Indian Institute of Horticulture Research identified a new chilli F1 hybrid ‘Arka Tejasvi’ (H41) for release during 2020. The hybrid has performed consistently at par with ‘Armour chilli’ for yield, fruit quality and tolerance to LCV for two years when evaluated at the institute. Large scale seed production of ‘Arka Tejasvi’ has been taken up this year for distribution to KVKs and institutes to study ‘Arka Tejasvi’ performance across the country.

FCI stockTo a separate query on the total quantity of food stocks stored by Food Corporation of India (FCI), Niranjan Jyoti, Minister of State for Rural Development, Consumer Affairs, Food and Public Distribution, said the total stock of food grains in the Central pool was 900.45 lt as on July 1. This included 603.56 lt of wheat and 296.89 lt of rice. To another query on Government’s plan to bridge the gap between domestic consumption and production of edible oils, Niranjan Jyoti said the domestic edible oil production has not been able to keep pace with the

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growth in consumption which is around 25 million tonnes. The Government has been implementing the Centrally sponsored scheme – NFSM (Oilseeds and Oil Palm) to augment the availability of edible oils and to reduce its imports by increasing the production and productivity of oilseeds sources from nine oilseeds (groundnut, soyabean, rapeseed and mustard, sunflower, safflower, sesame, niger, linseed and castor), oil palm and tree borne oilseeds in the country, the Minister said.

Source:The Hindu business Line

Mitsui invests $4.1 million in Indian biomass logistic company

» Firm makes announcementJapanese trader Mitsui & Co will invest ₹300 million (about $4.1 million) in Punjab Renewable Energy Systems Pvt Ltd, the Indian company said in a statement on Wednesday. Punjab Renewable Energy Systems, an Indian biomass supply-chain management company, is involved in the collection, storage and processing of agricultural residues and the production of biomass.

Source: The Hindu Buisness Line

Rice exports expected to be lower in FY22 compared to FY21

» Non-basmati exporters said exports of non-basmati rice will be 10 per cent lower compared to FY21, while basmati exporters say that if high freight rates and non-availability of containers continue, exports will be lower by 25 per cent compared to FY21.

Rice exports from India is predicted to be decrease in FY22 in comparison with FY21 on account of excessive freight rates, oversupply within the global markets and Vietnam‘s desire of Thai rice over the Indian selection. Non-basmati exporters mentioned exports of non-basmati rice shall be 10 per cent decrease in comparison with FY21, whereas basmati exporters say that if excessive freight charges and non-availability of containers proceed, exports shall be decrease by 25 per cent in comparison with FY21. Export costs of non-basmati rice has fallen by $20 per tonne within the final fortnight as world demand shrank. In FY21, India exported 17.7 million tonnes of rice, which was larger by 86 per cent than FY20. There was an nearly 4% enhance in basmati exports to 4.45 million tonnes and a 160% surge in non-basmati to 13.09 million tonnes in FY21, in keeping with information with Agricultural and Processed Meals Merchandise Export Growth Authority (APEDA). In worth phrases, whereas the non-basmati rice section greater than doubled to $4.8 billion (Rs 35,448 crore), even larger than basmati, there’s a drop of seven% to $4 billion (Rs 29,849 crore) in shipments of fragrant varieties. India’s complete agri exports went up by 17.34 per cent to $41.25 billion in FY21 in comparison with FY20. “Excessive freight charge has slowed down the tempo of rice exports. Freight price has gone as much as $120 -$130 per tonne inside six months from $50 -$ 60 per tonne. Additionally, the availability aspect has improved globally which can have an effect on Indian rice exports,” mentioned B V Krishna Rao, president, Rice Exporters Affiliation. Worldwide Grain Council has stored the worldwide rice output forecast up 6 million tonnes from 2020-21. Rao mentioned Vietnam has stopped shopping for rice from India. “That they had purchased rice until Could. They’ve their very own crop and they’re shopping for from Thailand too. Although Philippines, one other south east Asian nation, had lowered responsibility on Indian rice import from 50% to 35% in Could this yr, no exports occurred from India until date.

“Protecting all this in consideration, exports of non-basmati rice might come down by 10 per cent in FY22 in comparison with FY21,” mentioned Rao. Costs have too fallen by $20 per tonne from $390 to $370 during the

last fortnight as export demand shouldn’t be selecting up. For basmati rice, excessive freight price and non-availability of containers play a serious function in discount in exports. Vinod Kaul, govt director, All India Rice Exporters Affiliation mentioned “Within the first three months of FY22, export of basmati rice is down by 17 per cent. If the scenario doesn’t enhance, exports of basmati rice shall be 25 per cent lower than FY21.”

Source: Economic Times

Anti-GMO coalition opposes decision to import GM soyameal

» Domestic soya prices have crossed Rs 1-lakh-a-tonne mark » Anti-GMO (genetically modified organisms) activists have strongly opposed the Centre’s decision to allow

the import of GM soya meal into the country.

“What the Union Ministry of Environment, Forest and Climate Change and Genetic Engineering Appraisal Committee have reportedly stated is highly objectionable and legally untenable,” the Coalition for a GM-Free India has said. Quoting an official letter, the HinduBusinessLine reported on Thursday that the Government had allowed the All-India Poultry Breeders’ Association to import 1.5 million tonnes of GM soyameal to help it tide over the feed crisis in the industry. Domestic soya prices have crossed the Rs 1-lakh-a-tonne mark, sharply increasing the cost of production. The Government contended that both the Ministry of Forest and Climate Change and FSSAI (Food Safety Standards Authority of India) had not objected to the decision. While the GEAC found no live seed involved (hence, no objection to importing the GM products), the FSSAI reportedly said since it was not food (consumed by human beings) it had no purview over the issue. Anti-GMO activists have taken strong objection, saying that the Environmental Protection Act, 1989, rules were not just about GMOs (organisms), but also about products and substances thereof “Where is the safety assessment of this feed, who applied for this with the regulatory body and on what basis was GEAC saying what it did,” the coalition asked. “Even the Food Safety Authority cannot say that they will not regulate feed, since anything that enters the food chain that is hazardous, is something that the FSSAI has to regulate,” it argued.

Skyrocketing feed costsBattered by two waves of Covid-19, the poultry industry is now faced with skyrocketing feed prices, which constitute about 80 per cent of all the cost of production. Soyameal constitutes about 25 per cent of the feed needs, while corn contributes about 50 per cent. Unable to bear it any longer, the breeders’ association wrote to the Ministry of Animal Husbandry, seeking permission to import the GM soyameal, abundantly available in countries such as the US, Brazil and Argentina. “If you have to import non-GM soyameal, you have only Ukraine to depend on. But you have plenty of supplies, if they allow us to import GM soyameal. We are anticipating the first batches of the produce later this month,” an industry executive said.

Source: The Hindu Business Line

Foodgrain output scales a new peak in 2020-21 season

» Fourth advance estimates put production at 308.65 mt

Riding on the record production of rice and wheat despite the challenges of the Covid-19 pandemic, India pulled off a record foodgrain harvest of 308.65 million tonnes (mt) during 2020-21-20 — nearly 11 mt more than last year, Agriculture Minister Narendra Singh Tomar said on Tuesday quoting the fourth advance estimates. The total production of rice during the year 2020-21 is estimated at a record 122.27 mt against the previous best of 118.87 mt in 2019-20. Wheat output is projected to hit a record 109.52 mt. Pulses production, too, is estimated to be a record 25.72 mt ( 23.03 mt), while oilseeds output is projected to cross 36 mt against 33.22 mt in 2019-20, the Minister said. Similarly, the production of nutricious/coarse cereals is estimated at 51.15 mt, which is

higher by 3.40 mt more than the production of 2019-20. A substantial increase is expected in the cotton output at 35.38 million bales (of 170 kg each), which is better than 36.07 million bales in the previous year. The output of maize is projected to be 31.51 mt (28.77 mt), soyabean at 12.9 mt (11.23 mt), gram at 11.99 mt (11.08 mt), groundnut at 10.21 mt (9.95 mt), rapeseed/mustard at 10.11 mt (9.12 mt), and arhar at 4.28 mt (3.89 mt), according to the estimates.

Source: The Hindu Business Line

India’s sugar exports touch 5.11 million tonnes so far this year: AISTA

» About 2,02,521 tonnes of sugar is under loading. An additional 6,78,237 tonne of sugar is in transit for delivery to port-based refineries, it said.

Sugar mills have exported 5.11 million tonnes of the sweetener so far in the ongoing 2020-21 marketing year ending September, with maximum shipments to Indonesia, trade body AISTA said on Thursday. About 2,02,521 tonnes of sugar is under loading. An additional 6,78,237 tonne of sugar is in transit for delivery to port-based refineries, it said. Mills have contracted to export the entire 6 million tonne sugar quota assigned by the food ministry in January this year, All India Sugar Trade Association (AISTA) said in a statement. An additional 8,00,000 tonnes of sugar has been contracted under the OGL (open general license) route without subsidy support The sugar marketing year runs from October to September. According to AISTA, mills have exported a total of 5.11 million tonnes of sugar from January 1 till August 5, 2021 Of the total exports undertaken so far, maximum exports have been undertaken to Indonesia at 1.69 million tonnes so far this year, followed by Afghanistan at 6,23,967 tonnes and the UAE at 4,60,816 tonnes and Sri Lanka at 3,78,280 tonnes. “We are proud to say that the value of the sugar exported /under the process of the shipment is in excess of USD 2.5 billion or about Rs 18,600 crores, contributing to the country’s export earnings, particularly in a pandemic year and increasing the liquidity in the hands of sugar mills to pay cane price to farmers,” AISTA noted. The industry body further said that India has managed to contract around 6 million tonnes of sugar without export to Iran, which has the potential to buy 1.2 million tonnes. “With the changed political scenario in the global markets, it shall be prudent to find some mechanism to export sugar to Iran. This shall help India to widen its market and create a premium for Indian sugar,” it added. As the current marketing year coming to an end, AISTA said there is an urgent need for a timely announcement of the sugar export policy for the next year. The international market has gone up from 17.28 cents per pound on July 10 to 19.59 cents per pound on August 11, 2021, a rise of about 13.4 per cent on account of weather problems in Brazil, it added. AISTA also requested the government to clear the pending subsidy claims and address the shortage of containers and rise in ocean freight. Many export subsidy claims of previous years have not yet been settled. These claims may kindly be settled and paid expeditiously as mills will require funds before the start of the season, it said. The substantial increase in ocean freight and non-availability of containers have eroded the margins of export houses and are also proving to be a major bottleneck in export operations, it added.

Source: Money Control

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