Central government put a temporary end to sales by mills for the next two months starting from 8th Feb18 resulting in a immediate hike in the Sugar price by Rs 1/kg to Rs 30.50/kg. This put traders under worry that unless excess stocks are taken out of the country, there would be a bigger carry-over into the next season, when record output is likely. Spot prices of M 30-grade sugar in New Delhi had tumbled by 6% between January 10 and 31. However, from past few days, price has recovered by more than 3%, responding to two policy decisions. The Central government increased import duty on Sugar on Tuesday to 100% from 50% to stop the possibility of subsidised Sugar imports from Pakistan.

Maharashtra government's attempts to lift open market of Tur rate by procuring Tur at minimum support price (MSP) failed to seen any positive effect. The MSP is Rs 5,450 a quintal while private traders are still buying Tur at around Rs 4,500. This is attributed to the rate of Tur imported from Myanmar at Rs 4050 a quintal, this is despite a recent move to impose 30% customs duty on the commodity. Government procurement has begun from this month onwards. The open market rates had gone up Rs 300 soon after the announcement, but have now settled at Rs4,500.

According to the estimation of Cotton Association of India (CAI), Cotton output for the 2017-18 season is expected to be 367 lakh bales, of 170 kg each. The estimate is higher than last year (2016-17) production, which was 337.25 bales. The Cotton crop estimate for the ongoing season is lower by eight lakh bales due to severe infestation of the Cotton crop by pink bollworm, CAI said. To tackle this, farmers in several areas in Maharashtra and Telangana have uprooted their cotton crop without waiting for further pickings as advised by scientists.

Economic News

Large portion of Indian tea sector is skeptical about outcome of free trade agreement of India with ASEAN countries. After the agreement comes into full effect, duty cut in import of the green beverage is feared to cause severe adverse impact on Indian tea production sector. The ASEAN- India FTA is an area of free trade between India and ten ASEAN (Association of Southeast Asian Nations) member countries. It came into effect on 1 January 2010 with objective of enjoying better economic cooperation by mutually eliminating or modify tariff of around 4500 items including tea. "The international economic cooperation appears good. But it will cause adverse effects at ground level," said Bijoy Gopal Chakroborty, President of Confederation of Indian Small Tea Growers Association(CISTA). CISTA is the umbrella body of around 4 lakh Indian small tea growers those contribute around 40% to national tea yield.

Area sown to wheat has declined 4.27 per cent to 30.42 million hectare in the current rabi season of 2017-18, which may lead to fall in production from last year's record 98.38 million tonne(MT). Farmers had sown wheat in 31.78 million hectare in the 2016-17 crop year (July-June). According to official data, wheat acreage has fallen because of less area coverage in Madhya Pradesh, Uttar Pradesh, Rajasthan, Haryana, West Bengal, Maharashtra and Uttarakhand. Maximum drop in wheat acreage by 1.1 million hectare was reported in Madhya Pradesh this year, the data showed. According to industry experts, the fall in acreage could lead to decline in the overall wheat output in 2017-18, going below the last year's level. Taking into account an average yield of 3.1 tonne wheat per hectare, total production would be in the range of 94-96 MT, they said.


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