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Comprehensive Agri-Commodity Intelligence Comprehensive Agri-Commodity Intelligence

President G. Srivatsava Vice President Vinayak Meharwade Research Team Abhijeet Anand Bijayalaxmee Pradhan Debajit Saha Lopamudra Dhal Kempa Reddy Maria Krupa Naveen R Sajana S Shalini Kulkarni Swapna Shetty Vinay Soni Venkat Raman Marketing team Deepak Poddar Abhinaya SG Swapna BE Ravi Bhandage Designer K. Radhika Chinna.M Circulation Shiva Kumar Jaisheelan Data Support Gajendra Sanjay Jayanth Kumar Prabhu Jakaty Ansuya S Corporate Office Bangalore #146, 1st Floor, Gopal Towers, Ramaiah Street, HAL Airport Road, Kodihalli, Bangalore - 560 008. Tel:+91 80 25276152/53, Fax:+91 80 25276154 email: [email protected] web: www.CommodityIndia.com BUSINESS ASSOCIATE Alok Thakkar, 9425074420 [email protected]

Dear Reader, As forewarned by IMD, the southwest monsoon has been dull and lackluster so far with June experiencing 40% less rains. Khariff 2014 sowing is sluggish. Monsoon may turn normal post first week of July. We need to wait and watch and pray for the best. Import duty on sugar has been increased from 15% to 40% as a measure of protection. Besides, subsidy on export of raw sugar has been reinstated to Rs. 3300 per tonne. Banks have been advised to extend interest-free loans to the sector. Lastly, ethanol blending target has been increased to 10%. The government hopes all these measures would help sugar mills clear most of Rs. 11000 crore arrears outstanding to farmers. The centre has done its part. At the heart of the problem is pricing of cane. Rangarajan committee has given a working model. It is time to implement it. It is equitable, sustainable and would definitely enable sugar sector to come out of the current vicious cycle. Food inflation has been the point of discussion these days. Removal of supply side constraints including selective lowering of import duty on fruits, poultry, and milk and so on has been recommended. There is a strong case for it for the short term, although one needs to look at more sustainable solution for the long term. There is also an increasing divergence between wholesale and retail prices. Personally, I feel retail end needs reform. Perhaps, we need more broad base participation including participation from cooperative and government sectors as well as disruptive innovations at the retail end of the distribution. In a small way, Tamil Nadu has shown the way and the will in this direction. It is an interesting experiment to observe. We have presented in the inside pages excerpts of interviews of leaders from across the agri-supply chain. Hope you enjoy reading the selection. Please give your suggestions to us. It would help us serve you better. Thank you very much and best wishes G Srivatsava

Edited, Printed & Published and owned by G. Srivatsava, on behalf of Foretell Business Solutions Pvt Ltd, #146, 1st Floor, Gopal Towers, Ramaiah Street, HAL Airport Road, Kodihalli, Bangalore - 560 008 & Printed at Hamsanikethan Printers, No. 126, CT Bed, Banashankari 2nd Stage, Bangalore - 560070.

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Comprehensive Agri-Commodity Intelligence

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We do not give into pressures or compromise on our Observations

10 Commodity Futures Market –“India – The next Global Hub”

11 Warehouse Finance is a Game Changer 17 Highest ever Food Grains Production : To cross 264



million tonnes (2013-14)

20 “G F

2014”- An initiative to synergize the Grain and Feed Industry 2

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25 Dr Sanjaya Rajaram, Wheat Breeder Winner of the 2014 World Food Prize

28 Germination - A Solution to Malnutrition 30 Deficit Monsoon and El nino sets lower Production Targets

35 Bühler Ultra-Line High Capacity Energy efficient Paddy to Rice Processing Line

Warehouse Receipt System holds huge promise for India Warehouse ownership or construction is different from warehousing management. SLCM’sexpertise is in warehousing management. Our focus is on the organization or people who are managing these warehouses- how good they are in managing the warehouse, how well are they ...

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Follow Gujarat Model and Improve Crop Yield and farmer’s Income Huge public investment is called for to achieve higher agriculture growth rate. Access to quality inputs- certified seeds, soil fertility based fertiliser application, water conservation, farm and pest management – to farmers has to be improved. Information technology should be deployed to reach out to farmers...

Here is a great opportunity to make this magazine your own. Kindly feel free to post your appreciations and criticisms about articles, analyses and opinions appearing in the magazine. Selected comments would be appearing in our magazine with your name from next month. Your contribution would be a great step in adding value to the magazine and making “CommodityIndia.com” address the needs of its readers. Kindly post your comments to: Foretell Business Solutions (P) Ltd., #146, 1st FLoor, Gopal Towers, Ramaiah Street, HAL Airport Road, Kodihalli, Bangalore - 560 008 superscribed as ‘Letters to the Editor- CommodityIndia.com’. or simply mail them to [email protected]

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Warehouse Receipt System holds huge promise for India Ashok Mittal, CEO of KissanDhan, shares his perspective on warehouse receipt system with Lopamudra Dhal, CommodityIndia.com at G2F2 conference in Goa. Excerpts….

What is the core business of SLCM? How do you add value to your customers? Sohan Lal Commodities Management Pvt Ltd (SLCM) was established in 2009. We are one of the largest warehousing companies in India. Many private equity funds like Nexus Venture Partners, Mayfield Funds, Everstone and ICICI Bank have invested into the company. We are empanelled with MCX. We provide comprehensive agri commodity warehouse management, procurement, logistics and financial solutions to farmers, processors, traders, agriexchanges and government across the country.

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You have joined the group as the CEO of warehouse receipt financing business. Can you help us understand the industry and business? As per government estimation, wastage of food grains stored in warehouses is very high in India. This is the first challenge we address by providing safe and scientific storage leading to minimal wastage of goods stored in warehouses (0.5 percent to six to seven percent based on nature and condition of the crop, crop season and storage duration). The second challenge faced by grains and feed industry is timely financing support. Banks provide short term loans. However, such loans are restricted to select commodities and often need additional collaterals. We provide finance to farmers, importers, exporters and traders who need timely finance on the stocks. In this business, timing is very important. We provide finance in time on stocks stored in SLCM warehouses. Our USP is minimal documentation, quick processing, commodity as collateral and finance at attractive commercial terms.

There are Non-Banking Financing Companies (NBFCs) that provide loans to various sectors. However, we are an NBFC with specific focus on agro-commodities and provide warehouse receipt based financial assistance to the supply chain. Our lending decisions are based primarily on the commodity and not based on borrower’s balance sheet. What is a warehouse receipt system? How does it help producer or processor? How is it different from working capital? Warehouse receipt is a receipt issued when somebody (farmer, trader, processor etc.) deposits goods (in this case agro commodities) in the warehouse. The receipt will describe the goods quantitatively as well as qualitatively. Globally, warehouse receipts are pledged to raise money. There is a vibrant market that trades in these receipts. Warehouse receipt system commonly refers to the system of financing against the warehouse receipt. Thus, it avoids distress selling of goods by the producer. In the process, it smoothens the supplies into the market and might also result in reduced price volatility.

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SLCM provides finance to those commodities which are either not necessary traded on commodity exchanges or not in line with the quality parameters specified by the exchanges.

Everyone can’t approach banks because of various credit parameters, whereas traders provide finance to farmers but at high interest rate. In such situation KissanDhan, SLCM steps in, to help farmers through financing warehouse stocks at a very competitive rate. List out the commodities handled by SLCM There is no specified list of commodities. We can open to financing any commodities, anywhere in India and in any warehouse which, is managed and controlled by SLCM. Our focus ranges from cereals, pulses, oil seeds to spices. What are the potential growth opportunities for the warehouse receipt financing business in India? How can it be grown sustainability without increasing the cost to processors? Demand for agricultural commodities financing is huge because of restriction on financing some commodities and higher cost of financing. Our idea is to provide finance to farmers at lower interest rate with

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ease and without getting lots of documents. However, we follow the standards and follow the rule as long as we understand the commodity and we were able to add certain value. There is a good scope for warehouse receipt business. For example, the value of pulses and grains that we produce and consume is huge. Even if we finance around 1 percent, it can be around seven to ten thousand crore rupees. Cost of financing is higher in India, how come this challenge can be overcome Yes cost of financing, especially in the informal sector is very high in India. Banks do provide finance at cheaper rate to agro commodities; however, they have their own limitations. Everyone can’t approach banks because of various credit parameters, whereas traders provide finance to farmers but at high interest rate. In such situation KissanDhan, SLCM steps in, to help farmers through financing warehouse stocks at a very competitive rate.

warehousing management. SLCM’s expertise is in warehousing management. Our focus is on the organization or people who are managing these warehouses- how good they are in managing the warehouse, how well are they capitalized, what is their network, whether they will be able to manage the value-at-risk as per the commodities concerned and so on. Warehouse service provider is not a constructor of warehouse. Warehousing service provider is one who is able to manage a warehouse well, one who he is able to manage value-at-risk and be able to protect a commodity. Hence management of a warehouse is more important than constructing the warehouse.

On regulatory side, what are the challenges faced by SLCM? How can overcome this? From regulatory perspective, the whole focus goes on to warehouse as an infrastructure. The focus is on how the warehouse should be in terms size, construction and so on. Warehouse ownership or construction is different from

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We do not give into pressures or compromise on our Observations Mr. Ranjit Kamat, General Manager - India, Intertek Commodities shares his perspective on quality certification, cross-border trade and so on with Lopamudra Dhal, CommodityIndia.com at G2F2 conference in Goa. Excerpts… Brief us about Intertek, its operations in India and world-wide? Intertek is a 130-year old company in certification, inspection business with more than 36,000 employees worldwide, with more than 1000 offices in more than 100 countries. Intertek is trusted provided for quality and safety solutions to several of world’s leading brands and companies. We are the industry leaders and reliable testing and certification advisory in auditing, business assurance, certifications, validation, commodity valuation, risk management and so on. In India we have our headquarters in New Delhi and offices along the coast in all the ports, along with offices in Bangalore, Hyderabad, Indore and so on. What is the core value proposition of your company? Basically our core value proposition is ‘Quality to be delivered’, which is also the slogan of Intertek- “Valued Quality. Delivered.” We deliver quality. We help clients, who are in commodity transfers, custody transfer business, so that they can get the assurance that the quality what they are getting or selling is of the standards that they wanted or expected. Last year India exported 10.5 million tonnes of basmati and non-basmati rice and wheat around 5.5 million tonnes. What are the challenges regarding the cross border quality prospectus? How is quality inspection carried out for exports? That is a challenge that we face more with the suppliers and exporters, as well as the people who work for us, the stringent quality parameters put by the buyers across the world and what the sale product is available. There is a lot of pressure for getting certain borderline qualities to be pushed as acceptable quality for the standards. This is where our company stands out. We take pride in doing our work without taking any pressure and without any compromise to our observations.

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What are the key qualities, where India is trying to improve in the cross border trading? The main challenge we face is on what customers are expecting against what suppliers want to push across the custody transfer lines. Quality assurance failures are coming from the inadequacy on the certification side that is expected from the suppliers. Lot of onus is pushed on to surveyors like us, and we are pressurised to cross the borderline qualities into the acceptable quality. However, very little attention is given to the quality of the service provided for the quality certification when it comes to finalising business deals. What are the regulations carried by U.S. FDA and European Union about the Indian Quality assurance? Again, their requirements are straight forward and simple. Smaller and upcoming countries from South East Asia or South America are also complying with the delivery of the quality of the goods that are required from both these areas. Whereas the service providers like us have to maintain the standards like some of the other International entities, the price seekers from the suppliers dictate the term, and on several occasions we lose out on the quality certification business, because we are stringent with our observations and quality certification going together. What message would you like to tell our readers about the G2F2 Conference? I am very happy with this conference. I would like to suggest that from next year onwards, we can have a forum on the Quality services providers and their requirements as well as the constraints they work with. Thank you.

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It is a great moment for www.CommodityIndia.com Magazine, as we have bagged the award for Best Magazine in Commodity Market (English) category.

Commodity Futures Market “India – The next Global Hub” Commodity Participants Association of India (CPAI), the only registered organization that represents over 2500 Commodity Brokers & Participants of the country. We feel proud in mentioning that in a short span of time our association CPAI, has made its presence felt across the nation on all platforms i.e. Govt., FMC & Exchanges who have also acknowledged its role as a true representative of the Commodity Participants Fraternity. In a fast changing scenario, when the economy across the globe is going through a lot of upheavals, the world is looking towards India as a ray of hope for them to revive their economy. With more and more countries eyeing the Indian markets, it is quite obvious that India has a tremendous potential of becoming a global hub. Realizing the existing potential and to further explore the opportunities available for India to actually become A Global Hub, CPAI organized its 3rd International Convention on 14th June 2014 in collaboration with the Forward Markets Commission on the following theme: The convention was inaugurated by our Chief Guest Sh. Arvind Mayaram Ji, Finance Secretary, Ministry of Finance, and Govt. of India. This convention was attended by approximately 400 delegates from all corners of India apart from MDs /CEOs of all the National Exchanges, Govt. officials from Ministries of Finance and Consumer Affairs, stakeholders and people from the industry. In addition, the most Eminent speakers from various fields such as Commodities market, Commodity Exchanges, Finance, Economics, Warehousing, Food Securities and Media shared their views on various topics related to Commodity Futures Market and on theme of the convention.

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CPAI, on this momentous occasion, honoured the individuals and organizations as a token of appreciation for their services and contribution towards the growth and development of Commodity Futures Market. The people from various fields/ segments were selected and according to the decision of jury, the awards were announced. The categories selected for the award were: 1. Best Industrial body that helped in the development of Commodity Market Indian Bullions & Jewelers’ Association 2. Best Print Media (News paper) for Commodity Market Business Line 3. Best Magazine for Commodity Market CommodityIndia.com (English) Krishi Jagran  (Multiple Languages) 4. Excellence in Warehousing a)Best Warehousing Company Shree Shubham Logistics Limited b)Emerging Warehousing Company Sohan Lal Commodity Management Pvt. Ltd. Star Agriwarehousing & Collateral Management Ltd 5. Best Information Services Company for Commodity Market Cogencis Information Services 6. Best Exchange for Innovative Product Launch NCDEX

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Warehouse Finance is a Game Changer Mr. Sanjay Kaul, Managing Director & CEO of National Collateral Management Services Ltd (NCML), in an exclusive interview with CommodityIndia.com shares the operations, business, quality control etc of NCML. Excerpts. Take us through the various businesses of NCML? What is the core purpose or mission of your company? National Collateral Management Services Limited (NCML) is a professionally managed and institutionally held agri business company that specializes in providing services across the post harvest value chain. The mission of our company is to empower stakeholders in commodities and inventories to deal with associated risks. Our services range from warehousing and testing & certification for commodity exchange and other stakeholders, collateral management for lenders, and supply chain solutions for processors. NCML also provides weather and crop Intelligence services. The company’s business is over the following five verticals: • Storage & Preservation • Collateral Management • Supply Chain Management • Testing & Certification • Weather & Crop Intelligence • Storage & Preservation NCML offers modern, scientific and

July 2014

IT enabled storage and preservation services for the entire range commodities. Our 700+ warehouses spread across the country issue credible and reliable warehouse receipts. The company is also in the process of setting up its own warehouse complexes in 12 States across the country. The warehouses are accredited by the National Commodity and Derivatives Exchange (NCDEX) for accepting physical deliveries of commodities traded in the commodity futures market. Warehouses are also getting accredited to the Warehousing Development and Regulation Authority for issue of negotiable warehouse receipts. Collateral Management NCML has been a pioneer in providing collateral management services to banks. These services have assisted industries, traders and farmers in financing their capital requirement at various stages of the supply chain ranging from pre-harvesting to the marketing and export stages. We also offer premium services for working capital financing in commoditybased industries, especially

agro-based industries. NCMSL also provides warehouse receipt financing for commodities stored in its warehouses. Our services also cover structured trade finance products, stock audits, monitoring and inspection at diverse locations across the country. Supply Chain Management Our procurement and supply chain team consists of agri-professionals with experience in handling agricultural commodities in various parts of the country and we offer end to end procurement and related supply chain services to bulk consumers and large end users. Many small and large entities have

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found it convenient to utilize our composite services of sourcing, warehousing and quality verification under a single roof. Testing and Certification Our testing and certification services functions under the brand name of NCML CommGrade. In the short time since its establishment in August 2005, NCML CommGrade has acquired a nation-wide reputation of trustworthiness and integrity for its testing and certification services. The use of world-class equipments coupled with professional expertise and state of the art laboratory facilities across the country help us deliver zero error and quick test results. Weather & Crop Intelligence We are actively engaged in setting up Automatic Weather Stations (AWS) across the length and breadth of the country to provide weather intelligence to financial institutions for facilitating weather insurance products in the country. At present we have over 1950

automatic weather stations across 14 States. We also assess standing crop condition, acreage and forecast yield using simulation models, remote sensing and GIS Technologies. We also provide incisive market intelligence on the entire range of commodities traded in the country. Our pragmatic solutions based on assessment of existing resources, identification of problems and critical evaluation of various alternatives distinguish us from peers and other market players in the country. You serve a wide spectrum of clients from farmer, to private enterprise, to government to multinational companies. How challenging is it to service such client base as their quality-value perception varies significantly? It is true that we serve a wide spectrum of clients ranging from farmers, traders, processors, multi-national companies and the government. The requirements of different clients are different, and as such, any offering with the

underlying assumption that “one size fits all” is not acceptable to clients. Thus, while commodity finance is the most sought after product in so far as farmers, traders and processors are concerned, scientific warehousing at multiple locations across the country is what multinational companies in the commodity space would look for. Similarly, various state governments are keen to ensure that farmers get insurance against extreme weather conditions – we therefore provide weather data to different insurance companies through our network of automatic weather stations to enable the insurance companies to provide weather insurance to a large number of farmers. The banking industry is keen to promote the commodity finance product in a big way given the specialized collateral management service of the company, in terms of which the quality and quantity risks associated with the commodity financed are underwritten by the company. To meet the expectations of such a wide spectrum of clients, we customize the offering tailored to suit the requirements of individual clients. What makes it possible for us to come up to client expectations is the infrastructure, together with systems, processes & controls, and a pool of skilled manpower, created over a period of 10 years. Your company is in 12 states operates 300+ warehouses and handles 42 agricultural

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Data integrity is ensured through a unique system of checks and balances. The MIS designed by the company also helps the controlling authority to get a feel of the activities in the field. Further, we have a strong market intelligence team which helps the company detect unhealthy practices in the field. One common theme that one can notice is your businesses

commodities besides several nonagricultural commodities. How do you manage such diversity? Especially, what are the internal processes that you adopt to ensure that stated procedure and processes are followed and implemented? Lastly, how do you address unhealthy collusion and malpractices within the system? It is true that as a nation-wide company with a variety of operations across the length and breadth of the country, we face a number of challenges. The company has put in place robust operating processes for each of the verticals to ensure smooth functioning of the organization. We are the first company in the country to introduce automation in warehousing operations. Besides, we have strong control mechanisms for each of our business segments to ensure that

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the risks to the Company in all its operations are kept in check.

Over the last few years, stakeholders have come to recognize the virtues of scientific warehousing. Gone are the days when any kind of structure could double up as a godown for storage of agri commodities. There is growing realization that it makes business sense to go in for grading, sorting and testing of commodities To ensure that standard operating processes are followed across the organization, we invest heavily in training of our manpower. We have also put in place a multi-tier structure for routine checks, surprise inspections, audits and surveillance.

are highly human resources and talent intensive. Since the areas that you operate are also new and multi-disciplinary in nature, what challenges you face in talent management? By virtue of a variety of operations spread across the country, we are required to engage the services of a large number of people. Also, given the fact the verticals we operate in are relatively new, we did face a lot of challenges in getting personnel with the right skill sets. For some time, we conducted in-house prerecruitment training on a fairly large scale to induct a few hundred managers to take care of our rapidly expanding businesses. Over time, following regular interaction with a number of business schools, we have succeeded in getting a good number of bright students interested in our business model. As a result, in the last few years, our campus recruitment has picked up

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FACE 2 FACE momentum and a good percentage of vacancies in the junior and middle management levels get filled up through this process. But the key to nurturing and management of talent in the company is intensive and structured training, followed by opportunities to take up challenging assignments. Needless to add, the company recognizes and rewards star performers to ensure their continued interest in the organization. The performance oriented culture in the company inspires confidence across the rank and file of the organization to excel in their respective functions. This has helped us in keeping attrition at manageable levels.

Warehouse finance can be a game changer as it can provide liquidity to farmers and other stakeholders and we see this segment growing rapidly. How do you summarize the developments along the agri supply chain in the last 10 years? Are we moving in the right direction? Are we moving at the right pace? What should be the priority for the next 5 to 10 years? The agri supply chain in the country is going through a welcome change. Over the last few years, stakeholders have come to recognize the virtues of scientific warehousing. Gone are the days when any kind of structure could double up as a godown for storage of agri commodities. There

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is growing realization that it makes business sense to go in for grading, sorting and testing of commodities.

protecting the farmer community from any exploitative practices by trade & industry.

The new FSSAI rules and regulations are aimed at improving the quality of food consumed by the Indian consumer. Alongside, there is a new found quality consciousness among the urban customers. With the advent of commodity exchanges, price discovery, which was once the exclusive preserve of a handful of traders & adatiyas, has now become far more transparent with screen based trading spread to different corners of the country. Besides, extensive media coverage of the commodity space together with a network of price tickers at a large number of trading centers has helped disseminate prices of various commodities quite effectively.

We also believe that India would play a larger role in global food trade and to that extent; there would be greater emphasis in streamlining the food chain to achieve a higher level of efficiency in operations. Also, more and more areas of food consumption would come under the glare of the food testing authorities and regulators. This would effectively ensure safer and healthier food for the consuming masses. The company sees itself playing an important role in the changing scenario with all its business verticals geared to perform effectively and efficiently across the post-harvest agri supply chain.

Warehouse finance can be a game changer as it can provide liquidity to farmers and other stakeholders and we see this segment growing rapidly. The storage practices of the government agencies leave a lot to be desired. Also, these massive procurement operations reek of inefficiency. These operations also distort the price dynamics, devoid as they are of a proper co-relation between demand and supply. We however believe that over the next 4-5 years there would be a greater role for the private sector in procurement while the government would play the role of a watch-dog,

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Highest ever Food Grains Production : To cross 264 million tonnes (2013-14)

3rd Advance Estimates of Crop Production 2013-14. India is likely to produce 264.38 million tonnes of food grains during 2013-14 (includes kharif 2013 and rabi crops) compared to 257.13 million tonnes last year. This is seven million tonnes higher than the 2012-13 production. As per the third advance estimates, rice production is expected to reach 106.29 million tonnes, the highest ever on record and up by 1% from 105.24 million tonnes produced in 2012-13. Wheat production is expected to reach 95.85 million tonnes, again a record.

million tonnes, against last year final estimate of 3.02 million tonnes. Urad projected lower at 1.50 million tonnes, as against last year’s production of 1.9 million tonnes. Oilseeds output is estimated 5% higher at 32.40 million tonnes. Cotton production for 2013-14 season is estimated at 36.50 million bales (1 bale= 170 Kg). Last year cotton production pegged at 34.22 million bales. Sugarcane production is expected to increase to 348.38 million tonnes in 2013-14, as against 341.20 million tonnes last year.

Pulses output is expected to rise by 7% to 19.57 million tonnes in 2013-14. Tur production is estimated at 3.38 Production in Million Tonnes Crop

Season

2011-12

2012-13

2013-14 2013-14 (2nd Advance Estimates ) (3rd Advance Estimates)

Rice

Kharif

92.78

92.37

92.00

92.01

Rabi

12.52

12.87

14.19

14.28

Total

105.30

105.24

106.19

106.29

Wheat

Rabi

94.88

93.51

95.60

95.85

Maize

Kharif

16.49

16.19

16.88

17.51

Rabi

5.27

6.06

6.40

6.69

Total Foodgrains(Including Jowar, Bajra, Ragi, small millets and Barley)

Total

21.76

22.26

23.29

24.19

Kharif

131.27

128.07

128.36

129.37

Rabi

128.01

129.06

134.84

135.01

Total

259.28

257.13

263.20

264.38

Tur

Kharif

2.65

3.02

3.34

3.38

Gram

Rabi

7.70

8.83

9.79

9.93

Urad

July 2014

Kharif

1.23

1.43

1.18

1.09

Rabi

0.53

0.47

0.41

0.41

Total

1.77

1.90

1.59

1.50

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Production in Million Tonnes Crop

Season

2011-12

2012-13

2013-14 2013-14 (2nd Advance Estimates ) (3rd Advance Estimates)

Moong

Kharif

1.24

0.79

0.97

Total Pulses(Including other Pulses)

Groundnut

Castoor seed

0.98

Rabi

0.40

0.40

0.31

0.42

Total

1.63

1.19

1.28

1.40

Kharif

6.06

5.91

6.25

6.12

Rabi

11.03

12.43

13.52

13.45

Total

17.09

18.34

19.77

19.57

Kharif

5.12

3.18

7.02

7.65

Rabi

1.83

1.50

2.19

1.81

Total

6.96

4.69

9.14

9.47

Kharif

2.29

1.96

1.64

1.64

Sesamum

Kharif

0.81

0.68

0.67

0.63

Rape seed and Mustard

Rabi

6.60

8.02

8.25

7.82

Safflower

Rabi

0.14

0.10

0.11

0.11

Sunflower

Kharif

0.14

0.18

0.13

0.16

Rabi

0.36

0.35

0.33

0.37

Total

0.52

0.54

0.47

0.53

Soyabean

Kharif

12.21

14.66

12.44

11.94

Total Oliseeds(Including Nigerseed and Linseed)

Kharif

20.69

20.79

22.02

22.13

Rabi

9.10

10.15

10.96

10.27

Total

29.79

30.94

32.98

32.40

Crop

2011-12

2012-13

2013-14 2nd Advance Estimates

2013-14 3rd Advance Estimates

Cotton #

35.20

34.22

35.60

36.50

Jute & Mesta ##

11.39

10.93

11.30

11.40

Sugarcane (Cane)

361.03

341.20

345.92

348.38

# Million Bales of 170 Kgs.each ## Million Bales of 180 Kgs. Each

Source: Directorate of Economics and statistics

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“G2F2 2014”- An initiative to synergize the Grain and Feed industry Lopamudra Dhal, Agri-business Analyst

Teflas organized the forum cum Exhibition “G2F2” for the first time in India on Grain and feed on June 20th and 21st at JW Marriott, Panjim, Goa. As the name of the forum suggests and hence provides a platform where people share information and latest data on agriculture scenario which underpinning the agribusiness. The event was started with the Inaugural Ceremony followed by keynote Session on Agri business outlook of India; Asian future feed industry and Indian government perspective on agri business. The second day of the forum has four business sessions continuously one after the other on the grain price drivers and its forecast, free trade between countries and their challenges and opportunities, sugar industry & its trade. And the last session was a technical session mainly on storage, logistics, finance & weather which are the major factors influencing grain and feed production and their trade. Each of the session was organized in a very interactive and expertise way involving Indian and global expertise in respective fields contributing to the knowledge pool through presentation, panel discussion and individual interview with commodityIndia.com. In addition to this, there were few exhibitions of various companies in agribusiness to aware the audience on development, new technology in agri business and food processing. This was attended by diverse and sophisticated audience including worldwide expertise, entrepreneurs & business tycoons of India. The current agribusiness problems in India and its changing scenario with New Indian Government The initial discussion on the grain production and its stock in India and how to use the stock in a very efficient way .Some key challenges India is facing in the post-harvest management and its solution to the 20

industry. Key areas where new government need to focus and some positive expectation with revised policy that will strengthen the grain and feed industry. Proper infrastructure policy and its execution to improve supply chain efficiency. The growing feed industry size, its distribution and storage. How to bridge the gap between the supply and demand sides of Indian feed Industry.

Focus was not only on grain & feed industry but also on sugar industry. The key problems facing by stakeholders of sugar industry in India and its future market scenario. The weather, El Nino effects in the global commodities especially on grain and what are the measures taken to reduce its effect. Conclusion The event was a great success in providing a chance for all the stakeholders and intellectuals concerned with the grain and feed industry as the event was organized for the first time in India. It not only highlighted the issues and challenges of the industry but also provided solution and projected future prospects.

July 2014

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Dr Sanjaya Rajaram, Wheat Breeder Winner of the 2014 World Food Prize The United States’ Secretary of State John Kerry applauded the selection of wheat breeder Dr Sanjaya Rajaram as the 2014 World Food Prize Laureate at an announcement ceremony at the State Department, where the former delivered the keynote address. “When you do the math, when our planet needs to support two billion more people in the next three decades, it is not hard to figure out: This is the time for a second Green Revolution,” Kerry said, adding that was why Dr Rajaram was being honoured with the World Food Prize. “We are grateful for the hundreds of new species of wheat Dr Rajaram developed, which deliver 200 million more tonne grain to global markets each year and feed millions across the world,” he stated Charles Rivkin, assistant secretary of state, Bureau of Economic and Business Affairs, hosted the World Food Prize Laureate Announcement Ceremony. John Ruan III, chairman, World Food Prize, was also a participant. In announcing the name of the 2014 Laureate, Ambassador Kenneth M Quinn, president of the World Food Prize, noted how highly appropriate it was to honour Dr Rajaram – who was born in a small village India, but is now a citizen of Mexico – in Norman Borlaug’s centennial year. “Dr Rajaram worked closely with Dr Borlaug, succeeding him as head July 2014

of the wheat breeding programme at the International Maize and Wheat Improvement Centre (CIMMYT) in Mexico, and then carried forward and expanded upon his work, breaking new ground with his own invaluable achievements,” he stated. “His breakthrough breeding technologies have had a far-reaching and significant impact in providing more food around the globe and alleviating world hunger,” Quinn added. “Dr. Borlaug himself called Dr. Rajaram ‘the greatest present-day wheat scientist in the world’ and ‘a scientist of great vision’,” he informed. “It is an honour to recognise him today for his development of an astounding 480 varieties of wheat, bred to offer higher yields, resistance to the catastrophic rust disease, and that thrive in a wide array of climates,” Quinn added. Dr Rajaram worked to be the top in his class as he moved through school, and dedicated his life to making direct improvements for farmers and all people who depend on agriculture. He conducted the majority of his research at CIMMYT. His work there led to a prodigious increase in world wheat production – by more than 200 million tonne during the 25-year-period known as the “golden years of wheat” – building upon the successes of the Green Revolution. The wheat varieties Dr Rajaram developed have been released in 51 countries on six continents and have been widely adopted by small- and large-scale farmers alike. His crossing of winter and spring wheat varieties, which

were distinct gene pools that had been isolated from one another for hundreds of years, led to the development of plants that have higher yields and dependability under a wide range of environments around the world. The World Food Prize would also commemorate the United Nations Food and Agriculture Organisation’s International Year of Family Farming. Quinn also noted the importance of carrying forward the great work of leaders such as Dr Borlaug and Dr Rajaram, as we endeavour to feed our growing population. “A hundred years ago, when Dr Borlaug was born, the world population was 1.8 billion; today it is over seven billion, and by 2050, it is expected to exceed nine billion. The greatest challenge in human history is whether we will be able to sustainably feed everyone on our planet,” he added. “To that end, we would gather some of the greatest minds in science and agriculture in Des Moines between October 15 and 17, 2014, at our Borlaug Dialogue symposium to explore that question,” Quinn said. “We are especially honoured that Ernest Bai Koroma, president of the Republic of Sierra Leone, would deliver the keynote address at the conference. We invite all those with an interest in food security to join us in the effort to identify critical innovative solutions,” he added. (Source : http://www.fnbnews.com)

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FACE 2 FACE

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Follow Gujarat Model and Improve Crop Yield and Farmer’s Income Sandeep Bajoria, CEO of Sunvin Group, in an exclusive interview with Lopamudra Dhal, CommodityIndia.com shares his views about bridging the gap between farmers and the Government, rural prosperity etc at G2F2 conference in Goa. Excerpts…

that. Food inflation is a supply side issue and we will have to look at it accordingly. The government has to look at each commodity, and take apt measures. It has to give full support to farmer to increase the production. Increasing the supply is the right solution to tackle food inflation in the country. For example, oilseed and pulses were in the short supply, but the government has permitted both commodities to be imported at a very low duty or duty free. Hence, there is no shortage in the oilseeds and pulses. Both are available to the consumer at a very appropriate price. What is your take on the current agriculture scenario in India? How do you seethe future? The average growth rate of agriculture in India is around 3.5% which is very much inappropriate for a country with a population of 126 crore people. As our incomes rise, our need to feed the people with lot of supplies also rises. Inadequacy of supply leads to ‘inflation’ problem. The President’s speech in the Parliament recognized 26

Huge public investment is called for to achieve higher agriculture growth rate. Access to quality inputs- certified seeds, soil fertility based fertiliser application, water conservation, farm and pest management – to farmers has to be improved. Information technology should be deployed to reach out to farmers. Later, we have to improve postharvest infrastructure of the agriculture produce, where we

need to invest in the storage, transportation and futures market. So we need to have the whole support of the agriculture sector services to the farmer, in a very big way. The Rural Development Ministry has told the states that 60% of the MGNREGA money which is approximately 25,000 crores has to be used for rural infrastructure. These are the steps that government needs to take and focus on. I believe new government is committed to helping the farming community.

Huge public investment is called for to achieve higher agriculture growth rate. Access to quality inputs- certified seeds, soil fertility based fertiliser application, water conservation, farm and pest management – to farmers has to be improved. In India the land holding is small, and the families of farmers are divided so we have to increase the yields. Increasing the yields is the right way to increase the income of the farmers. July 2014

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FACE 2 FACE So, you suggest that the government facilitates infrastructure facility to farmers as well as improve backend of the supply chain. Right? Yes. There will be a positive effect, and this is the only way we can do it. Government has realized that India has to compete with the world and feed its vast population. For example, in the world, the average oilseed yield per ha is 1800 kg whereas in India it is 1100 kg per ha. In Brazil and USA, the yield of soyabean is around 3000 kg per ha. We have a lot more to improve. We should focus on the yield sectorby-sector and support farmer with every commodity. In this way, we can moderate inflation issue to some extent. Otherwise, inflation demand will be seen every three months. How do you bridge the gap

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Could you brief us about the current global oilseed situation? Currently, there is no shortage of edible oil in the world. There is enough palm oil in Malaysia and Indonesia, enough soyabean oil in US, Argentina and Brazil and enough sunflower oil in Ukraine and Russia. Hence world has enough quantity of oil and oilseed and oil meal. India is a country with high population and per capita consumption of oil is about 14.5kg/ year. Total requirement is about 18.5 million tonnes and our domestic production is only 7 million.

...the schools in the rural area during the summer vacation can be used as a laboratory to help farmers. Soil testing should be done nationally. In this way we can bridge the gap between farmers’ expectation and Government initiatives...

face this challenge. But in some commodities like onion and potato, there is a huge spike in the prices from past few weeks. Better supply management and better opening up of the trade and allowing farmers to directly sell their produce to the consumers through APMCs, should lighten the burden on the government. What would you like to share with the readers? We are an agriculture nation, where 50% population is dependent on agriculture for their livelihood. Although agriculture GDP is 17%, we have to incentivize agriculture, make it profitable to the farmers and see to it that farmer’s son is also interested in farming. Technological support along with the infrastructure facility to the farmer by government would lead to rural prosperity.

between Indian farmers and the Government of India? In Gujarat, a soil testing card is given to each and every farmer. The soil is tested and based on the soil fertility advice is given on crop selection. Same way the schools in the rural area during the summer vacation can be used as a laboratory to help farmers. Soil testing should be done nationally. In this way we can bridge the gap between farmers’ expectation and Government initiatives.

July 2014

What is the effect of El Niñoon the oilseeds Industry in India and the world weather? El Niño was expected to be in June, but now according to the latest reports, it is expected to be in the month of August and September. However the rainfall in India according to the IMD reports is said to be normal this year, 94% of normal, 36% of deviation and it definitely has an impact on the monsoon and agriculture. Government is gearing up to

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Germination - A solution for Malnutrition Dr. R. Sujatha, Consultant, Food Processing

Reserve Mobilization is a natural process that happens in seeds when they wake up from dormancy upon absorbing water. Seeds are kept in dormant state when seeds are dry. When the seeds are dry, respiration is at minimal rate and there is no metabolic activity. A cascade of metabolic events happenas soon as the seeds get hydrated and most of them are directed towards mobilizing the stored reserves of energy and convert them into readily utilizable simpler energy molecules. The seeds also mobilize the reserves of mineral ions which are stored in bound form to certain phytochemicals. These phytochemicals which bind the mineral ions act as Anti Nutritional Factors (ANF) to humans and other herbivorous animals. Mineral ions are mobilized and made available to the system only when these binding phytochemicals are broken down. The entire process of reserve mobilization is a preparatory process to facilitate germination and early stages of growth. During soaking and germination, reserve mobilization takes place with the various enzyme systems breaking down the complex storage molecules which are polymers into their simpler monomers. Carbohydrates, proteins and lipids are the three major kinds of stored foods in seeds. The storage carbohydrate is starch in seeds. It is a polymer of glucose molecules. Amylases are the enzymes which act on starch and break it down to its monomers, glucose. Similarly, proteins

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are made of amino acids. Basically, there are 20 amino acids and they are the building units of the polymer called proteins. Proteases are a group of enzymes specific to proteins which, break them down and release the amino acids. Lipids include fats and oils. Plants store lipids in the form of oils. Oils release large amount of energy upon oxidation which is required for various metabolic activity during the emergence of the seedlings. Soaking and germination which are the traditional methods of processing grains, also activate various enzyme systems degrading various ANFs. For example, Phytases degrade phytin. ANFs make nutrients such as proteins and minerals unavailable to humans and animals in two ways, Though the Traditional Indian Foods are considered to be balanced foods, the majority of Indian population especially, the women and children are malnourished according to the INSA (Indian National Science Academy) report (2011). This could very well be attributed to our modern methods of processing aimed at catering to exploding population. Protein and minor nutrient deficiency is very severe making it an emergency demanding immediate attention. Majority of the Indian population depend on legumes for protein requirement. India is the major producer and consumer of pulses. In spite of that, per capita consumption of pulses remains low because of poor

affordability. Legumes have diverse variety of ANFs which cause mineral deficiency and reduce the digestibility of the proteins resulting in severe inconveniences due to the formation of flatus. Poor digestibility adds to the woe of protein deficiency due to inadequate intake. Another important factor crippling the Indian Society is the growing prevalence of Diabetes. The diabetic population is bound to be malnourished because of severe restriction on the diet. This population requires minor nutrients and good quality protein rich foods with low glycemic index. It is high time the Food Processing Sector of India evolves innovative methods to incorporate the traditional practice of soaking and germination of grains in a scientifically standardized manner, prior to further processing to contribute to alleviation of micro nutrients deficiency and improving the digestibility of proteins and starch. Grains can further be enriched with mineral nutrients and vitamins by subjecting them to controlled fermentation processes. Products formulated including the steps soaking, germination and fermentation could be good foods not only for the malnourished but also as weaning, geriatric and diabeticfoods. The author can be contacted at suja_ [email protected]

July 2014

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Deficit monsoon and El nino sets Lower Production Targets Naveen R, Sr Commodity Analyst On back of worries of deficit monsoon due to El nino effect, Ministry of Agriculture of India has fixed targets for production of various Kharif and Rabi crops of 2014. Targeted production of major crops like rice is around 106 mt, 94 mt of wheat, 23mt of maize; pulses target production is around 19.5mt. So the targeted food grains production during 2014-15 crop year will be around 261 mt lower by 4.26mt.

to expectation of below normal monsoon and El nino effect. So far the monsoon over the country is deficit by 40% from the normal (25th June) in the current month. This has been reflected in the Kharif sowing progress across country. As per the latest reports of sowing of kharif crops, kharif sowing area has crossed 131 lakh hectare. It is reported that as on 27.6.2014, rice has been sown/

All in million tonnes except cotton, Jute & Mesta Others major crops like oilseeds targeted production is around 33 mt. Sugarcane and Cotton’s production is around 345 mt and 35 mt respectively. In most of the crops, both in Kharif and Rabi season, the targeted production is lower than that of last year is mainly due

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transplanted in 21.91 lakh ha, pulses in 4.30 lakh ha, coarse cereals in 19.54 lakh ha, and oilseeds in 4.79 lakh ha. The planting of sugarcane and cotton is in progress. Sugarcane has been planted in 43.92 lakh ha and cotton in 29.07 lakh ha as on date. All the sowing

July 2014

ARTICLE figures are well below last years figures at the same period. This in turn hints at every possible drawback/ lower production turnout during 2014-15 crop year. However, monsoon rains are expected to improve after July 7. If monsoon revives for the remaining three months, the crop output may perform well as compared to 2009-10 year.

July 2014

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Overall, 2014-15 crop year may be a lower crop production turnout year as monsoon is forecasted to be defecit because of El nino affect. Even the rabi season could turn out to be a tragedy for crop production, as the water table required for the production will be fueled by monsoon rains, which has so far failed to pick up at most of the regions.

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Murugappa Group ties up with 2 Japanese firms to make farm gear Coromandel International, a Murugappa group company, has entered into a joint venture with Yanmar & Co and Mitsui Trading for manufacturing and marketing farm machinery. Coromandel and Yanmar will hold 40 per cent stake each and Mitsui 20 per cent. It will initially manufacture the Yanmar brand of mini-harvesters, planters and rotavators for paddy cultivation and then expand its range to include equipment for other crops, including sugarcane and vegetables, according to A Vellayan, Murugappa Group’s Executive Chairman. Source : http://www.thehindubusinessline.com

CORPORATE NEWS

Ruchi Soya forays into RTC space; Launches Nutrela chunks,

ready mixes Ruchi Soya Industries Ltd, a Rs 30,000-crore fast-moving consumer goods (FMCG) company and one of the largest manufacturers of healthy cooking oils and soy foods in the country, announced its foray into the ready-to-cook (RTC) category. The new products launched under the company’s flagship brand Nutrela would include Nutrela Instant Soya (the world’s first instant soya) and Nutrela Ready Mixes (the world’s first soy snack and sweet mixes). Source : http://www.fnbnews.com

AgroTech opens first peanut butter manufacturing facility in India AgroTech Foods Limited, an affiliate of Conagra Foods Inc. of the United States of America (USA), announced the opening of its manufacturing unit in Jhagadia in Bharuch in Gujarat to start local production of its Sundrop peanut butter for the first time in India, a statement issued by the company said. The statement further said that the state-of-the-art manufacturing facility, being built at a cost of Rs 35 crore, would serve as an integrated multi-category grocery and snacks manufacturing hub for the Indian market. Source : http://www.business-standard.com

Wasabi-flavoured variant of Cornitos launched by GreenDot Health Foods Cornitos, GreenDot Health Foods Ltd’s flagship brand launched Wasabi-flavoured nacho crisps. It is available across retail outlets in 150g packs priced at Rs 85. Wasabi is a spicy ingredient derived from a Japanese plant. It tastes like strong horseradish and is used in powder or paste form as an accompaniment to raw fish.“Bringing one of the scrumptious flavours for the nacho lovers is a challenge in itself,” said Vikram Agarwal, founder and director, GreenDot Health Foods Ltd. Source : http://www.fnbnews.com

KMF to export Nandini Milk to Africa; Karnataka CM flags off container Karnataka Milk Federation (KMF) has now set its eyes on Africa as an export destination. KMF’s Nandini milk would be exported to South Africa through Vanya Food Exports Pvt. Ltd. In this regard, the state’s Chief Minister Siddaramaiah flagged off a 16,800 litre milk container that will be shipped to South Africa. The federation has tapped a substantial export potential in 23 countries. In its Africa Safari, it would ensure that its Nandini milk brand would be available in countries such as Senegal, Guinea, Mali, Burkina Faso, Nigeria, Ghana, Togo, Congo, Algeria, Libya, South Sudan, Kenya and Angola. Source : http://www.fnbnews.com

Mother Dairy & Ramco Systems sign five-year agreement for ERP on Cloud Mother Dairy Fruit and Vegetable Pvt Ltd, one of India’s leading milk and dairy majors, has signed a five-year agreement with Ramco Systems, an enterprise software product company focused on delivering enterprise resource planning (ERP) on Cloud, to connect its extended network of 30-plus sub-contractors with an end-to-end ERP that can seamlessly integrate with its existing SAP instance at the principal site. In the first phase, subcontractors of Mother Dairy’s ice cream business have gone live on the solution. This has helped the company have better control over purchases and visibility of supply, ensure centralized approvals, quicker maximum retail price (MRP) and better product traceability. Source : http://www.fnbnews.com

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July 2014

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Bühler Ultra-Line High Capacity Energy efficient Paddy to Rice Processing Line.

External view: State-of-the-art Buhler’s 16 TPH Ultraline installation at Sree Gajanan Siddhivinayak Foods at Sasaram, Bihar. of pressure on working capital and availability of small millers. Process efficiency: Large capacity milling equipment is the latest trend in the industry. Large millers have access to ultra-modern production technology, which smaller players cannot afford.

Buhler’s Ultraline installation at Sree Gajanan Siddhivinayak Foods at Sasaram, Bihar. Overview of Paddy Processing Industry Global rice processing Industry is already in the beginning of consolidation stage. Smaller Mills are challenged by Higher capital cost: Paddy is available only during seasons; hence millers need to lock in major portion of its working capital for Paddy procurement. This puts lot July 2014

High Logistics cost and poor market reach: Small capacity millers do not have economics of scale to minimise logistics cost and hence mostly their market reach is poor i.e. within the mill vicinity. On the contrary, the big industry players can afford to develop own distribution network and brand to reach to wider area. These reasons are resulting in consolidation in rice milling industry and the move from small mills to large scale processing.

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ARTICLE Bühler Ultra-Line. Buhler has clear vision of creating maximum value from every kilo of raw material through Smart Processing. Extensive analysis done at Bühler’s rice research & development division indicated that Economies of scale are important in improving energy efficiency. This analysis lead Buhler design team to develop Ultra line.

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as well as to eliminate foreign bodies and signs of disease.

Key features of Ultra-Line: • Product Superiority • Technology leadership • Process leadership • Energy efficient rice processing

Again, the specific challenges that face different processors are different. The quality and species of the incoming rice is a factor, and hence the quality standards are expected by the processor’s customers. However, whatever the constraints imposed by the raw material and customers, all processors can benefit from recent innovations that allow processors to define the exact quality level for their rice and to optimise their production processes to deliver significantly higher yields.

Energy economics Reducing the energy costs and environmental impacts of rice milling are major drivers of change in the industry. Smaller millers, operating at 2 tonnes per hour, generally on outdated equipment, are inevitably operating at low energy efficiency and, moreover, are unable to meet the quality/quantity demands of nonlocal markets.

New generation In the paddy to rice conversion process, the whitening and polishing stages consume the maximum energy and are instrumental in determining the finish of the end product. Hence, Bühler has introduced the UltraWhite™(DRWA) whitener and UltraPoly™ (DRPG/J) polisher as flagship products of UltraLine.

The highly competitive global environment demands high capacity paddy processing lines with low processing cost. The Ultra-Line is a technological triumph, with many novel rice processing features, generating multiple patents. These new features have brought about a revolution in rice processing, achieving unprecedented levels of processing capacity and extremely low processing cost per ton.

Both incorporate patented technologies unique to Buhler. These include shaft-less milling in the UltraWhite™(DRWA), which permits air to pass freely around rice kernels for uniform and gentle whitening, and the innovative sieve geometries of the UltraPoly™ (DRPG/J), which contribute to improvements in quality, increases in capacity and reductions in energy use.

Achieving maximum yields Of course, for energy savings to be truly significant, the yield of end product must also increase. Rice is a notoriously difficult commodity to process. If rice is over-processed, perhaps because it is handled too harshly or too often, it breaks. Yet the process must be rigorous enough to achieve the required quality output after whitening and polishing, and of course, to reject inherent defects in the colour, size or shape of grains, July 2014

The Ultra-Line range also features the SORTEX S UltraVision™ optical sorter. Optical sorting technology has been available for more than six decades and it has already revolutionised the speed and throughput of rice processing. However, technology has moved on and developments in areas such as data processing, intelligent computing, textured LED illumination and camera optics have provided an opportunity to increase the capacity, accuracy and yield of optical sorters, at the same time as reducing the energy burden. 37

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Internal plant view : Bühler’s state-of-the-art 16 tph rice mill, Ultraline installation at Sree Krishna Metcom, Ranchi, Jharkhand.

SORTEX S UltraVision™ intelligent optical sorting solution for rice. From the perspective of IT, for example, this new generation of optical sorter incorporates in-built intelligence, allowing it to make decisions about which grain is good and which grain should be rejected. Consistency of sorting performance is further enhanced with Intelligent Automation, which essentially describes the ability of the machine to self-learn as the product changes. This allows it to adjust itself automatically, according to the quality of the raw material, thereby removing the need for costly manual intervention. Light emitting diodes have revolutionised lighting in many areas of life, being more stable, more controllable and more energy efficient. So, within the SORTEX S UltraVision™, along with improved camera optics, textured LEDs permit an illumination environment in which the most subtle colour defects can be detected, individually and simultaneously. This includes varying degrees of purples, greys, yellows, streaks, pecks, black tips, and spots, chalky and immature or rotten grains. 38

ARTICLE

However, detection is nothing without precise ejection of the unacceptable grain, and innovations in this area also mean that this new generation of sorters can target just the right amount of air at the grain that needs to be removed, thereby removing fewer of the good grains with the reject. These ground-breaking technologies give processors unprecedented control over their output, as they can define the exact ‘accept’ levels necessary to meet their customers’ requirements, which help to eliminate waste and boost profit. Collective improvements Individually, each of the innovations described above (and others not mentioned) bring an appreciable improvement to yield and process performance. Taken together, installed in plants designed for maximum food safety and worker protection, these technological advances represent a major leap forward in high capacity, energy efficient rice processing. For individual processors, these advances represent the best chance of profitability in a highly competitive market. For the industry as a whole, they represent the best chance of meeting a growing demand for rice, in an era of rising energy prices and a need for sustainability. Leading rice processing technology providers such as Bühler are encouraging the adoption of more sustainable rice processing to drive down processing costs and increase resource utilization. ............................................................................................... About Bühler Bühler is a global leader in the field of process engineering, in particular production technologies and services for making foods and advanced materials. Bühler operates in over 140 countries and has a global payroll of over 10,000. In fiscal 2013, the company generated sales revenue of CHF 2,322 million. For your feedback and other information kindly contact : Mallikarjuna S, Head of Marketing & Business Development, Tel: +91 (080)67770180mallikarjuna.s@ buhlergroup.com

July 2014

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SPOT PRICES

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Commodity

Unit

Crude oil, Brent Crude oil, Dubai Crude oil, West Texas Int. Natural gas, Europe Natural gas, US Natural gas LNG, Japan

a/ a/ a/ a/ a/ a/

Coffee, Arabica (ICO indicator price) Coffee, robusta (ICO indicator price) Sugar EU domestic Sugar US domestic Sugar, world Tea, Colombo auctions Tea, Kolkata auctions Tea, Mombasa auctions

b/ b/ b/ b/ b/ b/ b/ b/

Coconut oil - Indonesia (c.i.f-Rotterdam) Copra - Indonesia (c.i.f-N.W.Europe) Groundnut oil - any origin (c.i.f-Rotterdam) Palm oil - Malaysia (c.i.f-N.W.Europe) Palmkernel oil- Malaysia (c.i.f-Rotterdam) Soybean meal-any origin (c.i.f-Rotterdam) Soybean oil- Dutch Soybeans-US (c.i.f. Rotterdam) Barley - Canadaian Maize- US Rice, Thailand, 5% broken white rice Rice, Thailand, 25% broken white rice Rice, Vietnam 5% Sorghum, US Wheat, Canada Wheat, US, Hard Red Winter Wheat ,US ,Soft Red Winter

b/

Quarterly averages Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar

Monthly averages March April May

2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1

2014

Energy $/bbl 112.91 103.00 $/bbl 108.03 100.80 $/bbl 94.32 94.20 $/mmbtu 11.84 12.40 $/mmbtu 3.49 4.00 $/mmbtu 15.77 16.00 Softs & Beverages ¢/kg 335.50 319.90 ¢/kg 227.80 214.30 ¢/kg 43.06 42.70 ¢/kg 47.56 43.40 ¢/kg 40.90 38.60 ¢/kg 338.40 328.5 ¢/kg 258.10 297.9 ¢/kg 287.30 235.4 Fats and Oils

2014

2014

110.1 106.2 105.8 11.6 3.6 16

109.40 106.70 97.40 11.40 3.80 15.30

107.09 104.04 98.07 11.03 5.02 15.30

107.04 107.08 104.02 104.07 100.06 102.01 10.09 10.07 4.09 4.07 16.06 15.08

109.07 105.06 101.09 10.02 4.06 15.02

298.2 203.6 43.3 44.6 37.7 337.5 276.1 222.9

284.00 185.00 44.00 46.00 39.00 377 256 213

383.00 212.00 45.00 47.00 37.00 372 256 229

472.00 493.00 232.00 233.00 45.00 45.00 49.00 53.00 39.00 39.00 359 355 180 238 209 209

472.00 227.00 45.00 54.00 40.00 367 298 196

$/mt

837.00

839

913.3

1175

1343

1394

1356

1404

$/mt

553.00

560

603.3

791

896

926

905

930

b/

$/mt

2002.00

1400

1,693.7

1575

1311

1221

1174

1200

b/

$/mt

853.00

850.7

827.3

897

911

961

911

893

$/mt

824.00

836.7

872.3

1057

1278

1381

1299

1254

b/

$/mt

531.00

528.3

551.7

570

582

584

566

579

b/ b/

$/mt $/mt

1160.00 1070.3 592.00 505.3 Grains $/mt 239.50 229.7 $/mt 305.00 291.3 $/mt 562.10 546.4 $/mt 538.00 509.4 401.50 387.8 $/mt 292.00 259.9 $/mt NR NR $/mt 321.40 313.8 $/mt 297.60 275.2 Other Raw Materials ¢/kg 198.2 204.3 ¢/kg 315.5 290.5 ¢/kg 296.2 244.6 Metals and Minerals $/mt 2000.0 1836.1 $/mt 7918.0 7161.3 $/toz 1631.0 1415.1 $/dmt 148.5 125.5 $/mt 229.0 205.3 $/mt 17296.0 14967.1 $/mt 24,018 20,902 $/mt 202.9 NR

1,006.7 527.3

991 555

977 552

1002 500

999 516

965 521

191 241.9 477.3 420.3 433.2 385.9 NR 305.8 257.7

150.7 199.4 442.7 408.9 397.2 202.1 NR 308 276.4

129.05 209.09 443.07 375 391.02 224.02 NR 275.05 264

128.07 222.3 422 366 378.06 233 NR 323.06 286.09

135.9 222.4 395 355 370.9 232 NR 324.9 277.1

145 217.3 388 346 390.5 221 NR 334.7 277.02

202.4 259 234.8

192.0 259.0 235.0

207.0 225.0 198.0

214.0 228.0 192.0

208.0 220.0 178.0

204.0 207.0 170.0

1,782.8 7,086.3 1,328.6 132.7 210.2 13,956 21,314 186.1

1767 7162 1272.0 135 211.4 13909 22,910 190.8

1709 1705.0 1811.0 7030 6650.0 6674.0 1293.0 1336.0 1298.0 120 112.0 115.0 2101 2053.0 2087.0 14461 15678.0 17374.0 22,636 23024 23405 202.6 200.08 202.07

1751.0 6891.0 1289.0 101.0 2097.0 19401.0 23271 205.09

b/ b/ b/ b/

b/

Cotton A Index Rubber RSS3, SGP Rubber TSR20, SGP (New)

b/ b/

Aluminum (LME) Copper(LME) Gold (UK) Iron ore, spot, cfr China Lead (LME) Nickel (LME) Tin (LME) Zinc (LME)

b/ b/

b/ b/ b/ b/

Source: World Bank a/ Included in the energy index (2000=100) b/ Included in the non-energy index (2000=100) c/ Steel not included in the non-energy index $ = US dollar, ¢ = US cent, bbl = barrel, dmtu = Dry Metric Ton Unit, kg = kilogram, mmbtu = million British thermal units mt = metric ton, toz = troy ounce, n.a-Not available, SGP = Singapore

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July 2014

ARRIVALS & PRICES

www.CommodityIndia.com Comprehensive Agri-Commodity Intelligence

Arrivals and Prices of Major Commodities

Source : Chart-1:Trade Source, Chart-2:Krishi marata vahini * Banglore * Fine,Dappa,Medium are Combined Arrival Chart-3,8_Krishi marata vahini, Chart-5,7 -Trade Sources, Chart4: MSAMB, Chart6: RSAMB, Chart9,10:NHRDF

July 2014

41

www.CommodityIndia.com Comprehensive Agri-Commodity Intelligence

ARRIVALS & PRICES

Source : Chart11:Cotton association of India, Chart-12,13 ,14 Trade Sources, Chart 15 RBI reference rate, Chart 16 Mcx Spot

Chart 17,18 Ncdex Spot, Chart 19,20 Trader Sources Disclaimer : Prices & arrivals are taken from the authenticated sources. Every care is taken to remove any discrepancy in data. However, www.CommodityIndia.com is not responsible for any divergence.

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July 2014