MONTHLY REPORTDECEMBER 2020

AGRI PRODUCTUPDATE

PORT ANALYSIS 3

MARKET OVERVIEW AND TRENDS 6

KEY HIGHLIGHTS 8

SUGAR 11

FOODGRAIN 13

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-Oct 20 Apr-Oct 19 Variance Y - o - Y

ANGRE 37500 33000 4500DIAMOND HARBOUR 0 41538 -41538HALDIA 26938 0 26938HAZIRA 65606 49847 15759JAIGAD 223700 250000 -26300KAKINADA 1697328 454005 1243323KANDLA 2599773 1487944 1111829MANGALORE 23500 37493 -13993MUMBAI 36000 0 36000MUNDRA 140421 303748 -163327PARADIP 67300 1539 65761TUNA 720640 510670 209970TUTICORIN 237638 271101.5 -33463.5VISAKHAPATNAM 14000 15000 -1000Grand Total 5890344 3455886 2434458

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AGRI- PRODUCT TRAFFIC AT INDIAN PORTS -APRIL - OCTOBER 2020 (Qty IN Metric Tonnes)

Port Name Cargo Total

ANGRE SUGAR 37500HALDIA RAW SUGAR 26938HAZIRA CRIMSON LENTILS 29071

SUGAR 36535JAIGAD SUGAR 223700KAKINADA LENTILS 83735

RAW SUGAR 523490RICE BAG 547223

SUGAR BAG 542880KANDLA CASTOR SEED MEAL 15000

LENTILS 19072RAPE SEED MEAL 361233

RAW SUGAR 42200RICE BAG 450537

SOYA BEAN MEAL 50000SUGAR 1225361

SUGAR BAG 426170WHEAT 10200

MANGALORE SUGAR 23500MUMBAI LENTILS 15000

SUGAR 21000MUNDRA BARLEY 63000

YELLOW PEAS 77421PARADIP YELLOW PEAS 67300TUNA LENTILS 28850

SUGAR 691790TUTICORIN CASHEW NUTS 12138

COPRA EXPELLER CAKE 145800SUGAR 27000

SUN FLOWER EXTRACTIONS 52700VISAKHAPATNAM RAW SUGAR 14000

Exporters of Agri products -APRIL - OCTOBER 2020 (Qty IN Metric Tonnes)

EXPORTERS Destination Country Cargo

ADANI WILMAR LTD. SAUDI ARABIA 4000

SOUTH KOREA 63733

THAILAND 54680

AMIRA AGRO INDIA LTD. SAUDI ARABIA 1200

AMIRCHAND JAGDISHKUMAR EXPORT LTD. BENIN 13000

BHAGWATI LACTO VEGETARIAN EXP. PVT. LTD. IRAN 12000

DALMIA CEMENTS LTD. SOMALIA 23000

DHAMPUR SUGAR MILLS CO. INDONESIA 30000

DWARIKESH SUGAR INDUS. LTD. INDONESIA 15000

GARDEN COURT DISCILEREIS PVT. LTD. IRAN 63000

GOKUL AGRI INTL. LTD. THAILAND 1020

GURUDEO OIL INDUSTRIES SOUTH KOREA 20000

GURUDEV CORPN. SOUTH KOREA 15000

HRMM AGRO OVERSEAS PVT. LTD. SOMALIA 34000

INDIA SUGAR PVT. LTD. INDONESIA 20000

ITC LTD. SENEGAL 5014

SOUTH AFRICA 5500

WEST AFRICA 33000

JINDAL AGROHCHEM SOMALIA 5000

K. N. RESOURCES SOUTH KOREA 15000

LAMA RICE PVT. LTD. SAUDI ARABIA 4300

LOUIS DREYFUS INDIA PVT. LTD. INDONESIA 51200

MANASA CO . LTD. IVORY COAST 7100

SENEGAL 18000

WEST AFRICA 6000

MURALI MOHANA RICE MILL IVORY COAST 18000

OLAM EXPORTS (I) KOLLAR IVORY COAST 22000

WEST AFRICA 95000

PACIFIC INDOMAS DJIBOUTI 25080

PARADIP CARBON LTD. SYRIA 25000

PARRY SUGARS REFINERY (I) PVT. LTD. DJIBOUTI 75000

ETHIOPIA 25000

SUDAN 264350

PATTABHI AGRO FOODS IVORY COAST 14000

SOUTH AFRICA 8500

WEST AFRICA 75800

RENUKA SUGAR LTD. IRAN 27500

JORDAN 27500

SOMALIA 20000

SUDAN 57000

SYRIA 46850

SAKUMA EXPORTS FAR EAST 20000

SARALA FOODS PVT. LTD. IVORY COAST 13900

SATYAM BALAJEE RICE INDUS. PVT. LTD. BENIN 77300

IVORY COAST 24000

SENEGAL 25070

SOUTH AFRICA 12500

WEST AFRICA 94823

SHREE RENUKS SUGARS LTD. JORDAN 26300

SHRI DUTT INDIA PVT. LTD. INDONESIA 132225

IRAN 104500

SRI DATTA SUGAR MILLS PARAGUAY 25500

SAUDI ARABIA 26600

SRI DUTT INDIA PVT. LTD. NEW ZEALAND 14000

SRI LALITHA ENTERPRISES INDUS. PVT. LTD. WEST AFRICA 9000

SUCDEAN INDIA PVT. LTD. SOMALIA 8000

SUDAN 15500

TRIMURTHI EXPORTS LTD. SOMALIA 1500

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

» Soyameal exports set to rise on improved parity in global markets » Farm produce exports exceed $10 b in April-Oct

» Lack of clear export policy forces mills to sell sugar below MSP

» India net exporter of agri-machinery equipment to some advanced countries

» Silk exports shrink as pandemic hits demand

» Rice exports rise 43% to 11.95 million tonnes in October

» APEDA & NABARD join hands to increase agri-exports

» Non-basmati rice export likely to double this year

MARKET OVERVIEW

AND TRENDS

7

AGRI TRADE

Soyameal exports set to rise on improved parity in global markets

» Trade body SOPA pegs shipments at 14 lakh tonnes for 2020-21 oil year

Amid the recent rally in the international prices, exporting soyameal from India has once again become competitive, thereby improving the export prospects as against last year. As per SOPA’s latest estimates released, soyameal exports for the oil year 2020-21 (October 2020-September 2021) is likely to be about 14 lakh tonnes (lt) as against 6.46 lakh tonnes in the same period last year. Exports for October-November have more than doubled to 3.25 lt (1.46 lt) the main destinations being Belgium, France and Iran. “Exports are looking good. Because of the recent worldwide rally in the prices Indian soyameal has become competitive. We are normally priced higher than the international prices but this year we have an advantage and can look to achieve 14 lakh tonnes or more of exports,” said DN Pathak, Executive Director, SOPA.

Soyabean, meal projectionsSOPA’s estimates put production at 104.55 lt, import of 3 lt during the year and about 5.16 lt of carryover stock from the last year. The total availability of the seed is projected at 112.71 lt. SOPA is likely to conduct a crop survey later in January. Arrivals during the first two months of the oil year — October and November — are

8

reported at 28 lt (30.5 lt). On the consumption side, while about 12 lt is likely to be retained for sowing, and 2.5 lt is projected to go for direct consumption, about 90 lt will go for crushing. Soyameal production is estimated at 73.21 lt, of which 51 lt is projected to be domestic consumption for animal feed, and 14 lt of exports during the year. Consumption in the food is likely to be 7 lakh tonnes.

Source: The Hindu Business Line

Farm produce exports exceed $10 b in April-Oct

» Basmati continues to be the top grosser in Apeda’s product portfolio

Fuelled by the rising demand for Indian rice, exports of farm produce monitored by the Agricultural and Processed Food Products Export Development Authority (Apeda) crossed the $10 billion mark during the April-October period this year, registering almost a 20 per cent growth over same period last year. While basmati rice continues to be the largest exported farm produce, the robust demand for the cereals has pushed up the shipment of non-basmati rice.

Non-basmati volumes In volumes, non-basmati shipments more than doubled to 6.12 million tonnes (mt)during April-October (2.81 mt in the same period last year), while basmati shipments were at 2.74 mt (2.05 mt). Shipments of non-basmati could have been higher for the April-October period, but for the congestion in the main shipping port of Kakinada, said BV Krishna Rao, President of The Rice Exporters Association. “There is robust demand for Indian rice. At present, there are 10 vessels waiting to be loaded at Kakinada,” Rao said.

Newer marketsGlobal supply constraints have fuelled a demand for Indian rice with new demand coming from countries such as China, Bangladesh, Malaysia, and African nations such as Cameroon, Congo, Mozambique and Madagascar among others. In volumes, the shipments of non-basmati have crossed six million tonnes. “With fresh demand coming in, we expect the total exports to cross the targeted 10 million tonnes for non-basmati rice this financial year,” Rao said. Other products that registered a growth during the period include groundnuts, pulses, processed vegetables, fresh fruits and vegetables, wheat and wheat products and fruit and vegetable seeds during the period. Groundnut shipments were up 40 per cent in value at $298 million during the period, while pulses exports grew 30 per cent at $171 million. Overall exports of Apeda products grew 26 per cent in rupee terms at ₹77,721 crore during April-October as compared to ₹61,847 crore in the same period last year.

Livestock productsInterestingly, the livestock product as a category that consists of buffalo meat, poultry and dairy products among others have seen a decline of about 10 per cent during the period. Exports of dairy products witnessed a decline of 5 per cent to $162 million.

Source: The Hindu Business Line

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Lack of clear export policy forces mills to sell sugar below MSP

» Between Oct and Dec, mills have lost over ₹5,000-6,000 crore, claims trade

Sugar mills in India have incurred losses of about ₹5,000-6,000 crore because of the Centre’s delay in announcing sugar export subsidy policy, according to sugar traders who estimate that about 15-20 lakh tonnes (lt) of sugar could have been exported during this period. As a result of dwindling demand, sugar mills are selling the stock below the minimum selling price (MSP) of ₹3,100 per quintal. The Central government had issued subsidy for sugar export for the last two seasons. In 2019-20, the country shipped 57 lt sugar and by December 31 another 2-3 lt will be exported taking the total to 60 lt. However, this season, the Centre has not taken a call on the continuation of sugar export subsidy. “Traders and sugar mills are awaiting the government’s decision on export subsidy and hence sugar export is halted. Between October and December mills have lost over ₹5,000-6,000 crore because they could have easily exported 15-20 lt , which they didn’t. The government must take a call on new MSP and export policy to stop further losses to sugar mills,” said trader and exporter Abhijit Ghorpade. Millers are bringing the sugar stock in the local market in huge quantity. The demand from industrial consumers including hotel industry, soft drink manufacturers is on the decline since the outbreak of coronavirus say, industry players.

Decline in demandAccording to Indian Sugar Mill Association (ISMA) the average ex-mill sugar prices in the major States are reported to be declining with the commencement of the current season. This, barring few Northern States where the prices are more or less steady. “In Maharashtra and Karnataka, the ex-mill prices which were hovering around ₹3,200-3,250 per quintal for the last couple of months have gone down by almost ₹50-100 per quintal. In the Southern States also, the ex-mill prices have declined by a similar figure. This indicates pressure in the domestic market due to high opening balance, expected increase in production in the current season, delayed export programme announcement by the government and no decision yet on the increase of MSP of sugar,” ISMA stated in a press note. The export will help reduce surplus sugar quota lying with 535 sugar mills across Indian and fetched money to repay loans and interests according to the National Federation of Cooperative Sugar Factories Limited (NFCSF). “There are reports that the government has decided against extending the export subsidy. But we have not received any official communication,” said a senior official working with the National Federation of Cooperative Sugar Factories Limited. 408 sugar mills were in operation across States as on last month-end producing 42.90 lakh MT of sugar in the season 2020-21, as compared to 20.72 lakh MT produced by 309 sugar mills at the same time last year.

India net exporter of agri-machinery equipment to some advanced countries

» “India’s export of agricultural machinery during 2Ol9 -2O was USD 1024.58 million witnessing a positive trade balance of USD 708.3 million,” the EEPC said in the statement quoting Minister of state for Agriculture and Farmers Welfare, Parshottam Rupala.

India has emerged as a net exporter of agri-machinery to some of the advanced countries like the US, the UK, Germany and Italy, an engineering export body said on Monday. Engineering Export Promotion Council (EEPC) India vice chairman Arun Garodia said in a statement, tractors are the largest component of the agri-machinery exports from the country, accounting for 66 per cent of the shipments. “India’s export of agricultural machinery during 2Ol9 -2O was USD 1024.58 million witnessing a positive trade balance of USD 708.3 million,” the EEPC said in the statement quoting Minister of state for Agriculture and Farmers Welfare, Parshottam Rupala. The global agriculture equipment market is projected to reach USD 279.5 billion by 2025, growing at a compound annual groth rate (CAGR) of 6.5 per cent from 2018 to 2025. India exported USD 782.93 million worth of agri

machinery to the UK, North America, Eastern Europe, EU, Africa, ASEAN and SAARC during 2019-20, accounting for 76.41 per cent of such exports, the statement said.

Source: Financial Express

Silk exports shrink as pandemic hits demand

» The exports are down by 28 per cent in dollar terms during the April-September period this year over corresponding last year. Shipments stood at $79.16 million or ₹591.72 crore during April-September as against $111.19 million or ₹791.89 crore in the same period last year.

Shipments of silk products have taken a major beating as the Covid pandemic has shrunk the demand in key markets of Europe and the United States, exporters said. The exports are down by 28 per cent in dollar terms during the April-September period this year over corresponding last year. Shipments stood at $79.16 million or ₹591.72 crore during April-September as against $111.19 million or ₹791.89 crore in the same period last year. “The spread of Covid and lockdown in the US and Europe are the main reasons for the decline in exports. The outlook for the rest of the year is not that great as the spreading of a second Covid wave in these regions is a big worry,” said Bimal Mawandia, Chairman of the Indian Silk Export Promotion Council. Mawandia further said that for the current financial year, exports of silk goods could be lower by 40-50 per cent over last year’s $350 million. “In the first three to four months of the current financial year, the exports were down by 80-90 per cent due to the lockdown and other logistics issues. As silk is a luxury item, buyers are very cautious,” he said.

Imports, too, sufferIndia, the second largest silk producer in the world after China, also has a big domestic market. In fact, India imports raw silk to meet its domestic demand. Moreover, it’s not just the silk goods exports that have been impacted. Even the imports of raw silk, yarn and fabrics have taken a beating due to the Covid. Silk goods imports fell sharply to ₹272 crore ($36.22 million) during H1 this fiscal from ₹781 crore ($110.15 million) in the same period last year, on account of sharp decline in import of raw silk and yarn. H1 raw silk imports were valued at ₹203.92 crore ($27.17 million) as compared to ₹588.45 crore ($82.92 million) in the same period last year.

Source: The Hindu Business Line

Rice exports rise 43% to 11.95 million tonnes in October

» India’s rice exports in the first ten months of 2020 totalled million 11.95 tonnes, up from 8.34 million tonnes a year earlier, according to data compiled by the ministry of commerce and industry

India’s rice exports in January to October jumped 43% from a year ago as buyers purchased lower-priced Indian supply to rebuild inventories after rival exporters trimmed shipments due a drought, government data showed on Tuesday. Higher shipments from India, the world’s biggest rice exporter, could cap global prices, reduce the country’s bulging inventories and limit Indian state stockpiler purchases from farmers. India’s rice exports in the first ten months of 2020 totalled million 11.95 tonnes, up from 8.34 million tonnes a year earlier, according to data compiled by the ministry of commerce and industry. Non-basmati rice exports jumped 61% from a year earlier to 7.6 million tonnes after prices jumped in the world’s second biggest exporter Thailand, making Indian shipments attractive, said an exporter based in Mumbai. The country’s basmati rice exports rose 20% to 4.36 million tonnes on strong purchases from Iraq, the data showed. India mainly exports non-basmati rice to Bangladesh, Nepal, Benin and Senegal, and premium basmati rice to Iran, Saudi Arabia and Iraq. India’s rice exports in 2020 may rise by nearly 42% from a year ago to record highs of 14 million tonnes, the Rice Exporters Association estimates.

Source: Business Today

APEDA & NABARD join hands to increase agri-exports

» Agricultural & Processed Food Products Export Development Authority (APEDA) and National Bank for Agriculture and Rural Development (NABARD) have signed MoU to work together to synergize the activities in the interest of agriculture and allied sectors for bringing better value to the stakeholders.

APEDA is collaborating with a few organisations and institutions for the development of Agriculture and export enhancement to achieve the objectives set under Agri Export Policy announced by the Government of India. The Agriculture Export Policy was framed with a focus on agriculture export-oriented production, export promotion, better price realization to farmer and synchronization within policies and programmes of Government of India. It focuses on “Farmers’ Centric Approach” for improved income through value addition at the source itself to help minimize losses across the value chain. Policy therefore suggests to adopt the approach of developing product-specific clusters in different agro climatic zones of the country to help in dealing with various supply-side issues viz., soil nutrients management, higher productivity, adoption of market oriented variety of crop, use of Good Agriculture Practices etc. APEDA has been relentlessly engaged with State governments for the implementation of AEP. The States of Maharashtra, U.P., Kerala, Nagaland, Tamil Nadu, Assam, Punjab, Karnataka, Gujarat, Rajasthan, Andhra Pradesh, Telangana, Manipur, Sikkim and Uttarakhand have finalized the State specific Action Plan. While the action plans of other States are at different stages of finalization. 28 States & 4 UTs have nominated Nodal agencies. State level Monitoring Committees under the Chairmanship of State Chief Secretary have been formed in 21 States & 1 UT. Twenty Cluster level committees have been formed in the cluster district(s) of potato in Punjab, U.P. (two separate districts), isabgol in Rajasthan, orange, pomegranate, grapes, banana (3 districts) in Maharashtra, banana in Tamil Nadu, Kerala, mango in U.P., dairy products in Gujarat, U.P., rose onion in Karnataka, fresh vegetables in U.P., orange in M.P. and potato in Gujarat (2 districts). Two rounds of meetings have been conducted in the clusters for sensitization of the stakeholders and discussion on the interventions required. It is in this perspective, APEDA and NABARD have signed MoU at their respective Head offices through online virtual mode to utilise their expertise by mutually working together to synergize the activities in the interest of agriculture and allied sectors for bringing better value to the stakeholders. Dr. M. Angamuthu, Chairman, APEDA and Dr. G.R. Chintala, Chairman, NABARD graced the occasion and delivered an address highlighting the need and advantages of collaboration between APEDA and NABARD for implementation of Agri export policy. The MoU was signed by Dr. Sudhanshu, Secretary APEDA and Mr. Nilay D. Kapoor, Chief General Manager, NABARD. APEDA and NABARD would jointly work towards the capacity development of various stakeholders and organise outreach programs, awareness programs and workshops for them. APEDA and NABARD would work together, to enhance farmers income for doubling the farmers’ income as set out by the Government of India. Extending benefit of relevant schemes/other initiatives of NABARD & APEDA for development of FPOs. APEDA would formulate program in association with NABARD to provide technical know-how to cooperatives/FPOs to upscale infrastructure created for post-harvest management for APEDA scheduled products to promote exports. To jointly identify clusters in various States for scaling up, APEDA will facilitate exports by the FPOs assisted/promoted by NABARD.

Source: KNN India

Non-basmati rice export likely to double this year

» “This year we will easily be able to export over 10 million tonnes of non-basmati rice compared to 5.04 million tonnes in the previous year,” said BV Krishna Rao, president of the Rice Exporters’ Association.

Export of non-basmati rice is expected to double this year as Indian prices are 10% lower than rivals and output has fallen in Thailand and Vietnam, exporters said. Major buyers include China and countries in Africa and Southeast Asia. “This year we will easily be able to export over 10 million tonnes of non-basmati rice compared to 5.04 million tonnes in the previous year,” said BV Krishna Rao, president of the Rice Exporters’ Association. “Our prices are 10% cheaper than other exporting countries at $380 a tonne.” Government data shows that exports until October more than doubled to 6.12 million tonnes. “A major reason is increased buying due to food

security concerns in West African countries after the Covid-19 pandemic,” said Vinod Kaul, executive director of the All India Rice Exporters’ Association. “India has become a reliable supplier as even during the pandemic we did not stop exports, unlike other countries. This will ensure that exports will continue to increase in the years ahead.” According to Ashwani Kumar Arora, MD of LT Foods, India is competitive in the global market and good stocks in the domestic market are helping exports. “For the rst time, some mills have been given clearance by China’s phytosanitary department and are exporting broken rice to the country. It’s a good opportunity to export to China and considering that they are not selling this year, gives us an added advantage,” Arora said. Tenders in Bangladesh to import over 300,000 tonnes of white and broken rice will also push exports, said Nitin Gupta, vice president, rice and grains, Olam India. “A drop in freight rates and availability of more containers can also take exports to new levels. Currently, there is a lot of chaos due to non-availability of containers at Kakinada port,” Gupta said.

Source: Economic Times

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DECEMBER2020

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