Geojit’s report on Agri Picks
Private weather forecaster Skymet expects the monsoon rainfall over the country to slip into negative territory in the coming days as the impact of El Nino will be felt during Aug-Sep. The axis of the monsoon trough has shifted to the foothills of the Himalayas leading to break monsoon conditions,” the weather agency said. According to official IMD data, rainfall since Jun 1 over the country stands normal at 528.9 mm for the period, and the surplus has been wiped out. Rainfall was 7% above-normal in the country last week. “There is no indication of any significant development over the Arabian Sea or the Bay of Bengal. This is a matter of concern for many states of Northwest Central and South Peninsula,” Skymet said. Skymet said that positive Indian Ocean Dipole conditions are expected during the second half of August and September, which are likely to reduce the harsh impact of El Nino to some extent. However, there are possibilities that monsoon may end with below-normal rainfall, it further said. Production of crude palm oil in Malaysia rose 11.2% on month to 1.61 mln tn in July, according to data from the Malaysian Palm Oil Board.In July, exports of palm oil rose 15.5% on month to 1.35 mln tn, while those of biodiesel jumped 30% on month to 16,801 tn, the data showed. Palm oil is also used to make biofuel. Total stocks of palm oil in Indonesia were up 0.7% on month at 1.73 mln tn as of June-end, the highest since February. Malaysia is the world’s second-largest producer of crude palm oil after Indonesia, and India is the largest importer of edible oils. The Centre’s foodgrain stocks with Food Corp of India were down 4% on year at 52.3 mln tn as of Aug 1. Compared to the previous month, the food grain stocks were down 6%.Wheat stocks registered an increase of 5.2% on year, but were down 7% on month at 28.0 mln tn as of Aug 1, according to data from Food Corp of India. Rice stocks in godowns operated by the FCI fell 13% on year to 24.3 mln tn. On a monthly basis, rice stocks fell 4%.The government has procured 26.2 mln tn of wheat in the 2023-24 (Apr-Mar) rabi marketing season, up from last year’s procurement of 18.8 mln tn. According to FCI, the government has procured 56.8 mln tn of rice in the 2022-23 kharif marketing season. The government has decided to offload an additional 5 mln tn of wheat and 2.5 mln tn of rice through the open market sales scheme in 2023-24. The government said it has adequate stocks of wheat and rice as of now, and the stocks will be enough even after releasing it under open market sales. “The government has adequate stocks of wheat and rice. We have 8.7 mln tn of surplus wheat and 20 mln tn surplus rice,” FCI Chairman Ashok Meena said. For the upcoming 2023-24 kharif marketing season, the government has increased the minimum support price of paddy grade-A and paddy common varieties by 143 rupees per 100 kg to 2,203 rupees and 2,183 rupees, respectively. The government has set the minimum support price of wheat this rabi season at 2,125 rupees per 100 kg, up from 2,015 rupees in the last season.
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