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Dear Readers,

South west monsoon 2014 has yielded an All India average of 773.7 mm between June to 28 September, below the normal level of 878.9. The withdrawal of the south west monsoon is seen in most of the northern states of India. However, south interior parts of Karnataka have seen vigorous rainfall in the past couple of days. Due to the uneven south west monsoon, kharif food grain output is declined by 7% i.e., 120.27 mt compared with the last year output of 129.24 mt.

Vidya Herbs is an amazing story in the manufacturing of plant extracts and oleoresins. K Shyam Prasad tells us about the opportunities in the spices world, without losing the richness of nature. Technology could greatly help the Indian agriculture. Indian Sugarcane Industry has a wide spectrum and Dr N Vijayan Nair of Sugarcane Breeding Institute, Coimbatore tells us about the role of the institute in developing the new varieties to increase the production and the way ahead for the institute on the occasion of receiving Sardar Patel outstanding ICAR Award 2013. According to USDA, India would replace China as the top cotton producer in the world this year. This would create an ample number of opportunities for the cotton and textile Industry. In this context, Hemamalini, of Microspin Pvt Ltd gives us an in depth knowledge of the textile industry and the gate way for the cotton producers as well as for ginners, especially in the export of the textiles and apparels. Guar gum is one of the stabilizing agent used in the food and manufacturing industry. Ganesh Prajapat of Guar Global, tells us about the production of guar, uses and way ahead for this industry in India. He also urges the Government to explore this sector and help the farmers in cultivating this crop. The interviews held at the International Seminar on Wheat & Wheat Products give us an insight into the wheat industry. The rupee is trading at 61.65 (30 Sep), and is anticipated to depreciate to 63.50 against the dollar till Q1 of 2015. The rightly launched Prime Minister’s” Make in India” and his visit to the US State, with an aim to make India as a Global manufacturing hub focusing more on manufacturing sector may help rupee to appreciate in the coming days.

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aS You FLIPwww.CommodityIndia.com

Comprehensive Agri-Commodity intelligenCe

4 October 2014

10 Guar Industry – an opportunity for Indian market

17 Cotton Industry in India

24 Segregation of Wheat is needed in India

27 Link the theoretical Studies with Practical knowledge on Wheat technology

31 overview of Indian rupee

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:

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Vidya Herbs expanding opportunities in the oleoresins marketthe sCFet technology is mainly used for non polar products (polar products cannot be used for extraction under this technology; this is one of the disadvantage of sCFe). Whereas in other technology like conventional extraction and steam sterilization……

Sugarcane Breeding Institute – Focusing on the development of

energy Canesthe institute has developed energy

canes with high biomass and high fibre content, which can be used as a

feedstock for the production of both cellulosic ethanol (second generation

ethanol) and cogeneration of electricity.

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October 2014

Vidya Herbs – Expanding Opportunities in the Oleoresins market

K Shyam Prasad, Managing Director, Vidya Herbs tells us about the spices extraction, oleoresins, conventional extraction, Indian market, opportunities for export etc with

Sajana, CommodityIndia.com Excerpts…

Could you brief us about Vidya herbs?Vidya Herbs is one of

the leading manufacturers of plant extracts and essential oils. With more than a decade of experience in manufacturing extracts, Vidya has substantial market knowledge and access to the most rare and powerful herbs in the world.

Recently Vidya Herbs opened up a Supercritical Fluid Extraction (SCFE) facility to

suit the demands for high quality oleoresins, essential oils, and herbal extracts. What is the purpose of introducing the new technology?Vidya herbs always think of advanced technology. SCFE is a technology where we use the liquid carbon dioxide as a solvent in extraction of oils and oleoresin. In this technology we use liquid carbon dioxide at a temperature 40 degree and at this temperature all the essential oils are retained, also there will not be any residue left out. SCFE can maintain the originality of the product. The SCFET technology, is mainly used for non polar products (polar products cannot be used for extraction under this technology; this is one of the disadvantage of SCFE). Whereas in other technology like conventional extraction and steam sterilization, the product is cooked above 80-100 degree Celsius, the essential oil gets evaporated at this temperature. At present solvent residue in the product is the main problem in export of spices. By using this technology we can serve the

customer the product free of solvent residues.

In terms of prices which is better whether it is SCFE or conventional extraction? Who are the buyers of these products?SCFE is little more costly than the conventional extraction. This is mainly because of the batch size, the cost of operation involved. The recent trend is everybody is looking for neat and safe products to use. The companies, who are focusing on organic products and products having low solvent or no solvent residue and who emphasis on quality, prefer these products. This method is not mandatory for export of spices but based on customer requirement Vidya herbs process it and serves the consumers.

How is the demand for SCFE products in India? What are the practices we should follow in order to increase the market for these products? What is Vidya Herbs share in this?SCFE products are not so very popular in India. We are still not

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October 2014

thinking towards that, because the image for SCFE product is that the product processed under SCFE will be higher than the product which is already there in the market. To increase the demand for these products we should create more awareness among the people about the benefits of the products processed by using the SCFE technology. Currently we are introducing some supplement (it includes spices as well) in the domestic market, also recently we have introduced the extracts of mango in the domestic market.

Since you are into oleoresin extraction and exports what are the precautions you take while sourcing the raw material to ensure permitted level of pesticide residue? Which are the emerging global markets for oleoresins, oils and Herbal extracts? Do you procure directly from the markets or do you practice contract farming?We procure spices from farmers and agency. Vidya herbs mainly focus on traceability. Initially we select the vendors and we test their product quality, once it is approved we keep them for longer time. Intermittently we keep testing their raw materials, visit their farms and check the pesticides used by the farmers, kind of soil contamination etc. These are the quality procedures followed by Vidya herbs. Some of the tests we conduct before

procurement are: pesticide residue, afflotoxin , heavy metals and active ingredients. The main consumers of our oleoresin are USA and European countries. We are also thinking to promote the oleoresin in other countries like Korea and South East Asia. Vidya herbs are not presently into contract farming because we are not majorly into spices. Once we start processing spices in a major quantity definitely we will do contract farming with farmers. Presently we are procuring pepper and nutmeg from Kerala and turmeric from Tamil Nadu.

How oleoresin products can be popularized in developing countries ( please explain with special focus to India)In India food sector is not systemized unlike other countries. For example if we take the developed countries the food packaging and ready to eat food sector are well developed but when it comes to India we are still lagging. So when this sector develops, we can see demand for spice oils and oleoresin.

Recently Vidya Herbs has taken over two processing sector in Kochi and Pondicherry, what is the future prospects?Vidya herbs mainly focus on value addition. In order to build an exclusive manufacturing sector for spices extraction we took over the company which is based in Kerala

(Kerala is the leading producer of spices in India) similarly we wanted to be a specialist in Carotenoids, so we have taken a unit in Pondicherry.

Vidya herbs is targeting for 1000 crore business turn over in next five years what are strategies to achieve this?We are working on different molecules, carotenoid, spices and herbal extracts. Development of Infrastructure, new and innovative product which are free from health hazards. We are mainly focusing towards nature’s molecules to keep ourselves happy and fit and improve the quality of life naturally.

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October 2014

Sugarcane Breeding Institute – Focusing on the development of Energy Canes

Dr.N.Vijayan Nair, Director, Sugarcane Breeding Institute, Coimbatore tells us about the new varieties, initiatives in the integrated nutrient management, biomass and its opportunities etc

with CommodityIndia.com. Excerpts…

Congratulations..!! For receiving the Sardar Patel outstanding

ICAR Award 2013. What do you attribute this award to?Thank you. This award is attributable to the performance of the Institute in terms of its significant contributions in sugarcane varietal development and sugarcane production technologies. Sugarcane Breeding Institute had been in the forefront

of sugarcane varietal development in the country and nearly 90% of the varieties cultivated today are either developed by the Sugarcane Breeding Institute (SBI) or by the state sugarcane research stations with the active collaboration of SBI. The most popular variety in the country is Co 86032 which occupies over 1 million ha in the peninsular India (about 20-25% of the total cane area in the country), and has been the mainstay of the sugar industry in the region stretching from Tamil Nadu to Gujarat. Another recent variety from the Institute, Co 0238 is well accepted in the Northern India and is spreading fast.

The Institute has strengths in both conventional and modern technologies with respect to sugarcane research. The Institute maintains the largest sugarcane germplasm collection in the World. The Institute has developed a wide array of interspecific and intergeneric hybrids involving sugarcane which forms the gene pool for the future varietal needs, be it for sugar, fuel or energy.

SBI was the first to demonstrate GM technology in sugarcane in the country. SBI has also used geospatial technologies in crop management. The Institute has also made significant progress in disease and pest management using chemical, biological and biotechnological tools.

What are the new varieties released by the Institute which would use less amount of water for cultivation and increase the yield?The Institute has released a number of varieties suited for the different agro climatic zones of the country. This includes Co 0238, Co 0118, Co 0239, Co 05011 and Co 05009 for the sub tropical regions and Co 2001-13, Co 2001-15, Co 0218, Co 6027 and Co 06030 for the tropical regions with better yield and sucrose content. Some of these varieties like Co 0238, Co 0118, Co 05011, Co 2001-13, Co 2001-15, Co 0218 and Co 06027 are water use efficient varieties and can withstand water stress.

What are the new initiatives taken in the integrated nutrient

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management and the irrigation facilities?Management of soils is a very important issue in sustaining sugarcane productivity. The continued monocropping of sugarcane in the traditional areas has resulted in degradation of soils to a serious extent. The soil organic Carbon content has come down significantly in most areas resulting in changes in soil physical and chemical properties, which is a serious concern. The Institute has focused on this issue and has developed INM(Integrated Nutrient Management) packages involving organic/ green manures, chemical fertilizers, bio fertilizers and residue recycling to improve the soil health and sustain cane productivity. Since the sugarcane crop produces large amount of recyclable biomass greater emphasis is given for residue recycling for improving the soil organic content and to improve overall soil health.

The water table in sugarcane growing areas is receding alarmingly and there is an absolute need to moderate the water usage in sugarcane farming system and to maximize water use efficiency. The Institute has demonstrated that drip irrigation can save close to 40% of irrigation water and when combined with fertigation can improve yield by 10-20%. By fertigation there also is a saving of 25% of N and K fertilizers. The Institute is trying to impress upon the farmers of the need to conserve water through micro irrigation methods through

media and the Institute-industry meets. The Institute is also trying to evolve water use efficient varieties.

Sugarcane biomass is one of the main energy sources, which can be used in the modern technologies. What are the new initiatives taken in this process? Is there any opportunity for India to take up this as an opportunity?SBI is actively involved in the bioenergy research. The major focus is on development of energy canes that are suited for ethanol production and cogeneration. The Institute has developed energy canes with high biomass and high fibre content, which can be used as a feedstock for the production of both cellulosic ethanol (second generation ethanol) and cogeneration of electricity.

The area under cultivation for sugarcane has increased from 2010 to 2013, but the yield of the crop is decreased and the consumption is also increased. What are the reasons for this? What would be the solutions to increase the challenges?Sugarcane yield has remained more or less static for the past two decades. However the demand for white sugar is growing with increase in population and per capita consumption. The major reasons for the yield plateau are varietal degeneration and deterioration of soil health. Besides, cane cultivation is being expanded to areas and soils which are not ideally suited for cane cultivation. The

varietal degeneration happens due to the accumulation of pathogens in the vegetatively propagated crop like sugarcane. This has become much more pronounced with the emergence of the yellow leaf disease, which is a virus disease that cannot be managed through conventional methods. A healthy three tier seed nursery programme using disease-free tissue culture plants as breeder seed can restore the crop health and thus productivity. The soil health issues have to be addressed through integrated nutrient management. There are certain concerns about emerging new diseases and pests, for which the Institute is evolving management techniques through varietal, cultural, chemical and biological approaches. The Institute has also initiated studies on managing the impact of climate change in sugarcane agriculture.

How can soil health of traditional sugarcane growing areas be preserved for sustainable production?As mentioned earlier the INM involving different sources of plant nutrients with emphasis on organics, supplemented with secondary and micronutrients wherever necessary will help in restoring the soil health and sustaining productivity.

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Guar Industry – An Opportunity for Indian Market

Ganesh Prajapat, Managing Director, Guar Global Ltd

Indian Guar Gum IndustryIndian guar gum industry is one of the self dependent

industries of India, which is running on minimum investment from Government. Complete industrial cycle starts from cultivation of guar crop, processing and ends with both export and domestic consumption. Industry sustain on crop production from rain fed cultivation. It utilizes very low farm resources like water & electricity and other farm inputs like fertilizer & agrochemicals. It circulates money from top oil companies & FMCG companies to farmers, who are taking crop in deep interior locations of desert of Rajasthan.

Guar is cultivated in India since centuries. It is traditional

leguminous crop of western desert of India. Desert covers area from Haryana, Punjab, Rajasthan and Gujarat. Traditionally guar is used as fodder crop; green vegetable and concentrate cattle feed. Today guar is used in more than 20 different industries like food processing, food industry, printing, paint and die, textile, paper industry, agarbati industry, cattle feed, pharmaceutical, oil and natural gas, fracking, cement, mining, explosive, agro chemical, toiletry, shampoo, soap, bakery, confectionary, ice-cream and desert. The by product of Guar is widely used in cattle feed, fish meal, chicken meal and other animal feed. It is one of the richest sources of protein as a nutritive diet.

Today guar is a major source of foreign exchange from farm produce. When we compare rice and guar in context to cultivation, farm input and research, rice is a premium crop which utilizes most of irrigation water, and is grown in best class agriculture land, government has established dedicated rice research directorate and many rice research institutes and private companies are investing huge money in farm inputs for rice and government also provide credit at very low interest. But in case of guar it is grown in desert part

of India, which is dependent on rainwater, we do not have a research institute or hybrid variety of guar, no major agriculture companies are involved in selling of farm inputs dedicated to Guar, most of small local companies provide their input for Guar industry.

Government purchase huge amount of rice on minimum support price [MSP] and ensure rice farmers, but in case of guar, farmers are totally dependent on local traders.

If I define above discussion then it will be “Rice is an organized industry with huge investment from Government and Private Companies. Guar is completely unorganized industry with limited investment of Government and Private Companies”

Guar creates a lot of employment opportunities like traders, model man, transporters, processing technicians, industrial labour, export houses, packing material producers, shipping companies and many other professional involved in this cycle.

Guar Cultivation Traditionally guar is cultivated in rain fed condition of western Rajasthan. It is a summer rainy

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season crop. Cultivation period starts from June with the arrival of monsoon and it matures up to October. It is a 90-100 days crop. It is also grown as green manure crop. Guar crop improves soil condition and increases nitrogen content of

soil. In irrigated condition farmers go for summer crop which starts from March and ends up to June. In same field one can take two crops a year but as per agronomical practices it is not considered as a good practice to take same crop just after harvesting the crop.

Most of guar varieties are selection varieties. These are selected on the basis of physical appearance of progeny. Gum content of seed is also one of top characteristic to choose the variety.

It requires very less water. Farmers start sowing with arrival of first

rainfall. It requires three or four additional water / irrigation after sowing at the interval of 15-20 days.

Crop will be ready for harvest after 90-100 days. Farmers stop any type of irrigation after 75-80 days and

allow it to mature and dry. As per available moisture, farmers go for harvesting manually. Then dry it and thresh it. Normal threshers are used to separate seed from stems. Guar TradingNormally in rainfed area farmers store crop produce and sell it as per his financial requirement. In irrigated area trends are different large farmer store and wait for the right price but small farmers are forced to sell the crop just after harvest as it is only source of his income.

Middlemen buys guar crop from farmers and sells it to stockist.

Stockists maintain their stock and resell to manufacturer and processor. Normally intellectual communities discuss about the eradication of middleman but in my view role of middleman is very important. He assists farmer to sell his produce and help processor to procure the quality material. Middle man works as a linkage channel between farmer and processor and understands the need of both ends.

These days, we see a trend of Warehouse Receipt Finance (WRF). Some farmers or stockist store the produce in warehouse and get finance from banks and sell it as per their choice. Role of commodity exchange is also increasing. These exchanges provide facility of physical delivery of produce on certain destinations.

Most of grain market of guar growing belt deals in guar seed trading. These markets are located in Southern-Western Haryana, Southern Punjab, Western Rajasthan and northern Gujarat. New crop cultivation areas are increasing in Maharashtra, Andhra Pradesh, Telangana, Madhya Pradesh and Tamil Nadu.

Guar Seed Processing Processing is the main value addition activity for guar seed. There are two processing steps, in first step guar seed is processed into guar gum split. In the second step, guar gum split is processed into guar gum powder. Side by side there is also activity of processing of guar Churi and guar Korma, as it supplies best quality animal feed protein.

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Most of the small industries are purely involved in primary processing of seed into guar gum splits. Splits are directly exported to other countries for further processing. Big industries are involved into both primary and secondary processing. Some of the major industries have technical collaboration or joint venture with foreign companies and process guar gum into end product.

Normally there is a recovery of 27-30 % guar gum from guar seed. Rest of the 70 % part is used into animal feed as Guar churi and Guar korma. Guar gum powder is mainly used in oil and natural gas industry and food industry.

Industry wise application of Guar GumOil and Natural Gas Industry: • It is used in process of oil well fracking (fracturing), oil well stimulation, mud drilling from oil and various industrial applications and used in preparations as a suspending agent, thickener agent and stabilizer agent.• It is used as a surfactant, synthetic polymer and deformer ideally suited for all rheological requirements of water-based and brine-based drilling fluids, in oil and natural gas industry.• It is used for textile sizing, finishing and printing due to its film forming and thickening properties.• It is also used as a binding agent in paper industry.• In the cosmetic industry, it is used as a thickening agent in lipsticks, shaving cream, hair shampoo etc

• It is also used in the pharmaceutical industry, in the manufacture of nutrition foods and other drugs. Guar Gum application in Food Industry• In frozen food products: It works as a crystal growth controller, moisture loss controller, freezer burn reducer, freezing point and thaw separation controller. Guar gum reduces crystal formation, act as a binder & stabilizer to extend shelf life of Ice-cream. • In baked food products: It works as moisture retaining agent, dough controller, binding agent, film forming agent, jelling agent, bloom controller, agar and gelatin replacer, glazing agent etc. Guar gum provides unparallel moisture preservation to dough and retards fat penetration in baked foods.• In dairy products: It prevents syneresis in cheese formation, improves texture and tenderness, and maintains color and viscosity uniformly. • In sauces and salad preparations: Guar gum acts as a water binder in sauces & salad dressings and reduces water & oil separation.• In confections: Guar gum controls viscosity, bloom, gel creation, glazing & moisture retention to produce the highest grade confectionary. • In beverages: Guar gum provides outstanding viscosity control and reduces calories value in low calories beverages, maintains viscosity, improves mouth feel.

• Ketchup and pickles: It is unique cold water dispersible, acid resistant, free water binder in salad dressings, sauce, pickles and relishes. It improves free flowing properties of ketchup and pickles and improves their taste.• Noodles: For better sheet formation, improves moisture retention and texture.

Globaly around 60 % guar gum powder is used in Oil and Natural Gas industry and 20 % guar gum powder is used in food industry. In India around 60 % guar gum powder is used in food industry and around 30% is used in paper and textile industry.

Major Price deciding factorsFirst RainfallRainfall is primary factor of guar price decision. Since 90% of world guar cultivated in rain fed condition (Even in irrigated area it is cultivated at rain fed block of farm). Germination percentage in rainwater is good and timely. Timely arrival and adequate rainfall is considered as a good start for guar crop.

International natural Gas pricesAn average of international Gas prices, directly affects Guar gum prices. At the high prices there will be demand at higher rate and at low prices demand will be at low prices.

International Oil PricesInternational oil prices, doesn’t not directly affect guar prices but it affects Natural Gas prices and Natural Gas prices affect guar prices.

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Carry Forward StockGood amount of carry forward stock can ease guar seed supply in market and poor carry forward stock can tight the supply.

Commodity MarketMovement of future prices in commodity market directly affects guar gum prices in physical market. Future contract at high price will lead to strong spot prices. If future contract are at low prices then spot market also react in same direction.

FOREX Rates FOREX is key factor of international trade. Any short term and long term change in exchange rate affects the guar gum prices.

International Policies International policies affects the guar gum prices, if any policies promote the guar gum application then it will lead to increase the price. If some country ban on activity where guar gum is used the denand and the prices also decreases

Major challenges for Indian guar gum industryHigh Price VolatilityPrice volatility will kill the guar gum industry. Other industries are working seriously on other alternates to avoid price volatility of guar. Once they will stick to alternate it will very hard for them to return to guar.

Unorganized BusinessStill guar business looks a family owned business; there is no any major professional approach in guar gum industry. In global scenario they need more and more professionalism. The industry needs to be organized and there must be more involvement of government, investors, buyer and other stock holders.

SpeculationsGuar is one of the highly speculative businesses. Time to time speculators become active and swap profit margin. It is a very organized activity. 5-10 big speculators make a group and try to destabilize the prices of guar.

Processing of Guar Gum outside India Some countries mainly China and European countries import Indian refined guar gum and process it there. They earn huge money in value addition. It is very big challenge for Indian Guar Gum industry. Actual profit margin is swapped by foreign players. Indian companies must force foreign players to establish value addition plants in India, so that in long term we can save our Guar Industry.

No Research and DevelopmentGuar is a very big industry. But there is no new R&D. We need 3 to 5 dedicated research institutes special in cultivation and product development so that new research can be carried out. Properties of guar are needed to be studied in depth.

Up gradation of processing technologyProcessing technology needs to be upgraded. Still there is 5- 8 % losses of guar gum content while processing.

Invention of Guar SubstitutesAfter finding Guar industry very lucrative, other organization are working on guar substitutes both natural and synthetics. In short term it is not big challenge. If price volatility and speculation keeps going then end user can shift to stable alternates. Like last time food industry shifted to Xanthone gum (A product derived from corn floor). Quality Standards & ControlThough there are some quality standards as per industry. But it needs in depth quality control exercise from cultivation to export. Standardisation will give an edge toward revenue generation. Processor need to work in context to end user instead of middleman involved in international trade.

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Cotton Industry in India

Hemamalini, HR Manager, Microspin Ltd

A good cotton shirt, costing upward of Rs. 800, weighs only 250gm. This means, cotton is sold to the end-user at Rs. 3200/Kg – that is

thirty times the commodity price! Perhaps no other agricultural commodity multiplies so much in value before it is ‘consumed’. Without doubt, there is a cost associated with this value-addition. But all this adds up to just a third of the price paid by the end-user. Another third goes to distribution channels – from warehouse to user. This is the opportunity that e-com players are seeking to disrupt.

Cotton goes through one of the longest series of steps, compared to other agricultural commodities, before it becomes a product for the end-user. Each one of the steps involves a large diversity of options, each characterised by its own specialised processes and skills. From a business point of view, this entails a complex web of inter-relationships among different productive operations; and implies a long turn around time in the working capital cycle. Coupled with seasonality in production cycles as well as market demand patterns, the picture appears almost intractable.

The cost of holding huge volumes of stock over long times usually erodes the margins significantly. A feel for this can be had from the following facts:• Long lead-times of manufacturing Fibre to garment: 90 days, large batch-sizes Need to ‘forecast’ 12 months ahead

• Big inventories, in-process stock Daily production at a mill: 15 tons (Rs. 30 lakh)‏

• High cap-ex, in turn leading to over- production A mill runs 24-hr/day, 360 days/yr

• Expensive marketing to push unsold stock

• Fragmented production Extensive movement of stock at every stage

Vertical Integration: The Holy GrailSo what has this got to do with the cotton value chain? Plenty! Textiles are not a homogeneous commodity of mass consumption – the market is more highly segmented than perhaps for any other manufactured product. The industry in India is fragmented across different independent units spread far and wide. It is not uncommon to find that cotton from Punjab is spun at Coimbatore in Tamil Nadu, woven at Bhiwandi and made into garments in West Bengal. This leads to unproductive waiting time after each stage of production, apart from direct costs of aggregation, transportation and re-distribution of stock.

The huge pipeline of in-process stock also makes it difficult for the industry to quickly respond to changing market trends. Experts have argued that for the industry to be profitable, it is essential to be vertically integrated.

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This would, it is contended, enable the entire production chain to be better aligned to market fluctuations and reduce waiting time at different intermediate points.

This mismatch of scales has fragmented the industry, leading to high intermediation costs between different steps of the value chain, in turn eroding the profitability. More disastrously, fragmentation has driven producers across the value chain to compete merely on costs, sacrificing quality and diversity. As a result, the industry is characterised by low-value commodity production that derives its competitive advantage only from wage arbitrage and lax environmental controls. Clearly, this is not sustainable.

Lean vs. Mass: The Question of ScaleHowever, to be truly efficient, the industry needs to move from the paradigm of mass production to lean. This should not be difficult when most of the industry is predominantly in the decentralized sector. About 95% of the output of weaving comes from small and tiny units even today, demonstrating clearly that economies of scale are not relevant to this industry.

Unlike industries like automobiles that have successively transitioned from the mass-production paradigm to approach ‘single-piece flow’ and ‘zero inventory management’, textiles have remained stuck in the 19th century mode of organization. Why?Spinning – the operation of converting cotton into yarn – is carried out in units that are hundreds of times larger than the typical scale at which the rest of the stages in the value chain are organized. This sets the bar for the minimum scale at which vertical integration may be carried out. However, this scale is clearly non-competitive at other stages of value addition.

Hence, the scale of spinning is the key bottleneck preventing the re-organization of the industry in a vertically integrated manner.

Micro-spinning: The BreakthroughThe initiative of Micro-spinning has, for the first time in the world, breached the limitation of scale in cotton yarn

spinning. While conventional spinning mills are of the order of 50,000 spindles in scale, the Micro-spinning line has demonstrated that it is possible to be technically and economically viable at 100-times smaller capacities. This opens up the possibility of an inclusive textile industry that is driven by the primary producers, artisans and tiny entrepreneurs. A textile industry built around this technology is characterized by • Integrated cotton-to-garment chain – Lead-time: 6-times shorter – Scale: 100-times smaller – Quick style change – Small scale: 40-Kg/8-hr• Collocated, low-overhead operations• Customisation, differentiation• Organic production • Regional identity

The value addition dramatically outstrips the cost addition as one move up the chain. This is depicted in the figure below.

Redefining ‘Quality’Conventional spinning technology is premised on cotton being compressed into dense bales, which are then violently torn open at the spinning mill. Further, yarn is seen as a commodity whose defining qualities are uniformity and strength. These parameters assume importance from the need to minimize downtime due to yarn-breakages in downstream processes where it is handled at ever increasing speeds to maximize productivity.


22 October 2014

Agricultural and Processed Food Products Export Development Authority (APEDA) has signed a

Memorandum of Understanding with Maharashtra State Warehousing Corporation, (MSWC) for

setting up of cold storage, frozen cold chamber and blast freezer in Gultekdi, Pune.

The total project cost is Rs. 928.91 lakhs wherein APEDA’s contribution will be Rs. 800.00 lakhs.

Pune district has insufficient cold storage capacity in comparison to the existing farm produce, which is only 2% to 3%. Moreover, no large cold storage facility

is available within 15km radius of Pune city. Currently the traders send their produce to Vagholi which is 30 kms away. There is a fair percentage of the horticulture produce coming to APMC which is export bounded.

The proposed integrated pack house facility at Gultekdi Pune to be located at an area of 1160 sq mtrs just opposite the APMC market which does not have any cold chain facility for the purpose of storage . The traders and farmers are incurring extra cost in transportation of produce. The identified products for the project are is pomegranate, grapes, resins, dairy

products and frozen vegetables. The proposed infrastructure includes cold storage, pre-cooling chamber and blast freezer chamber.

infrastructure to created under the project:

1 no. 400 MT Cold storage for fruits• 1 no.400 MT frozen Cold chamber storage for processed • vegetables1 no. 1200MT cold store for dry fruit , spices and fruits • 5 no’s. 10MT Pre coolers • 2 no’s. 3MT blast freezers • 1no. Grading packing hall• Ancillary infrastructure (pallets, crates, etc)•

press releAse

October 2014 23



However, contemporary thinking on production frowns upon such simplistic reasoning, advocating the virtues of flexibility, diversity, customizability and continuous improvement, over mere maximization of throughput.

Micro-spinning marks a departure from this thinking of yarn-as-a-commodity, leading to a fundamental shift in the criteria of quality by which yarn is judged. The significant features of Micro-spun yarn, captured under the brand Crafted Yarn™ are:

The cotton is never compressed into bales• The machines touch the fibers gently, to keep alive • its springinessThe fabric displays a distinctive softness, swing and • drape

This dimension to quality has found spontaneous acknowledgement from customers of the cloth, who readily perceive the enhanced feel and comfort of this fabric that is not to be had in conventional cloth.

Microspin’s inclusive production model has enabled farmers to walk in with their produce from the field. It is then ginned, spun, dyed and woven in an integrated co-operative facility of just 25,000 sft. Young men and women from agricultural background have been trained in operating the machines, managing operations and monitoring quality – so they don’t just grow cotton but capture the value created across the production-chain.

When you purchase Crafted YarnTM Fabrics, you are not just doing yourself a favour. The value that accrues to the farmer is 300% more than if she had just sold the cotton. And, the community remains rooted in their village – instead of her family members migrating to distant places to augment the meagre family earnings.

The Microspin Process

Buldana Textiles at DongarKhandala, Buldana District, Vidharba

Crafted YarnTM Fabrics

24



October 2014

Segregation of wheat is needed in India

Mr Ratan Gupta BE, Director, Modern Flour Mills Pvt Ltd tells us about the quality of the wheat,

it’s consumption, fortification, Government policies, modernization etc with Lopamudra Dhal,

commodityIndia.com at International Seminar on Wheat and Wheat Products, Chennai. Excerpts…

What is the quality segregation of wheat according to Indian

consumption?India is a vast country growing different varieties of wheat In the earlier days, we used to store whatever wheat was produced. But now we are capable of exporting wheat to other countries, and I would request the millers to segregate the wheat according to their quality and should be stored separately. We need different types of wheat in the manufacture of different types of products. For ex, pasta needs a different quality of wheat, whereas chapatti needs different type of wheat to prepare. India is so fortunate, that we have al the types of wheat, but the problem lies in the segregation of wheat. So we are looking forward to store the

wheat according to their quality and uses, so that it can be used by the bakers, household, noodles makers etc and other industries and deliver a good quality product.

For fortification, is Government taking any steps for regulation? What are the major sources of food fortification?Government has not put any mandatory rules and regulations for food fortification so far. We are requesting the Government to make fortification in atta and maida, with folic acids and vitamins like the same way how the salt is fortified with iodine. There are also suggestions to fortify oil also, as oil is consumed by every common man in India. Apart from this, we are also requesting the government to distribute wheat flour, instead of wheat through PDS System.

Could you brief us about the policies of the Government in the wheat industry?Right now, we have policies on the MSP of the wheat. We also have open sales policies, wherein the wheat is sold through tenders in the open market to the consumers, traders, millers and also for the export.

What is the modernization seen in the Indian Machinery in Wheat cleaning?Modernization in the wheat industry pertaining to cleaning does not have a proper set up or a system. We, have a close mindset that FCI, will procure FAQ (Fair Average Quality) wheat. But we have to come out of this mind set now, as we have abundant quantity of wheat available. We have to think about segregating special quality of wheat. In this regard, we have to make it as a mandatory for the farmers to clean the wheat before it is procured by FCI.

What is your view on taxation in processed wheat products? Is it helpful? Every state has got their own taxation policies. In some states, wheat is being taxed and in few other states, wheat products are being taxed. So there is an imbalance seen in the taxation structure. So, I would request that there should be uniform policies of taxation throughout India. I would also suggest that, since it is a common man’s food, the taxation from the food item should be removed and made zero percent.

PreSS reLeaSewww.CommodityIndia.com


26 October 2014

Upgradation of Apple Juice Concentratration Plant at Parwanoo, Himachal Pradesh by HPMC

Agricultural and Processed Food Products Export Development

Authority (APEDA) has signed a Memorandum of Understanding with H. P. Horticulture Produce Marketing and Processing Corporation Ltd., (HPMC), Shimla Upgradation of Apple Juice Concentration Plants at Parwanoo, Himachal Pradesh. The total project cost is Rs. 1240.35 lakhs wherein APEDA’s contribution will be Rs. 800.00 lakhs.

The plant was set up in 1979 and since then running on old plant and

machinery due to which the output is minimal. These lines because of their age are neither efficient nor hygienic enough and use obsolete methods for juice recovery which makes them not to be utilized in the present scenario where exports have stringent norms of production under HAACP guidelines.

HPMC procures on an average 20000-25000 culled apples under MIS to ensure proper remuneration to the farmers and prevent losses to them. Although, the total processing capacity at Parwanoo plant is around 12000 MT, however,

plant equipments are obsolete which have affected the efficiency of the unit and as a result of which HPMC is able to process 7000-8000 MTs apples/annum. This is only 30-40% of total procurement. The remaining stocks have to be sold in the open market and HPMC also incurs loss due to spoilage. The critical gap in the plant is crushing capacity which is 6 MT per hour but rest of the plant is capable of working at 10 MT per hour. To maximize the utilization of plant and machinery the entire process line needs to be balanced. The proposed infrastructure is expected to upgrade the entire process line to be able to process 10 MT of raw apples per hour.

Export Projections:

Year MTs Value Rs. Lakhs

1 200 2002 300 3003 500 2504 700 3505 1000 500

Mr. Santosh Sarangi, IAS, Chairman, APEDA and Mr. Jagdish Sharma, IAS, Managing Director, HPMC inked the MoU documents on 22.09.2014 in the

presence of Senior Officers from both sides.

27



October 2014

Mr J N Kushawaha, Vice Chairman, Wheat products Promotion Society, tells us about India Baker Society, technical and practical knowledge, packaging and quality of wheat etc with

Lopamudra Dhal, commodityIndia.com at International Seminar on Wheat and Wheat Products, Chennai. Excerpts…

Could you brief us on Indian Baker Society? What are the trends

and present scenario of bakery Industry in India?Society of Indian bakers was formed in 1972 in order to gather the bakers. At that particular time bakery industry was not very much organized, so the USA associates and few technologists got together and formed a society to help the tiny bakers. This serves as a platform for the bakers to have a basic and practical knowledge of the bakery industry in India. This

is an NGO, run by the technologists and the bakery industrialists together. The basic purpose of this association or organization is to collect data to help people to provide the technical assistance.

According to you how can the technical knowledge are gained by the students so that they can have practical knowledge along with their theoretical subjects?According to me, the students who pass out from the science and technical college goes to work directly, without any practical knowledge, and this is the reason why they are not able to corporate much in the productivity. If the administrators or the management can re-design the syllabus, after consulting from the senior consultants of the industry, we can expect the students to be more industry focused. So in my opinion, farming, colleges, researchers, industry people should be placed on the same platform, so that the researchers and the technologists are linked to each other and are benefitted to enhance the quality and to control the self life and other relevant things.

List out some key parameters that are important for milling and which decide the quality of the flour required by different industry like noodle, pasta, bread, biscuit industries. And what are the criteria on which segregation of wheat take place?The technology is increasing in the manufacturing industry day by day. If we go more deep into the bakery industry, we find gluten content in maida which is required to make bread, cake, biscuits or other products. Our technologists and researchers should be able to find out different varieties of wheat, which can give better protein value. At the milling stage, different types of flour or maida should be packed separately considering the uses and the technical requirement of the bakery industries. In other countries, we can see the description of the flour and its uses for example, cake making flour, bread making flour etc. people can pick up the particular pack and use it. This system should also be practised in India

Link the Theoretical Studies with Practical Knowledge on Wheat Technology

PreSS reLeaSewww.CommodityIndia.com


28 October 2014

Bühler empowers pulses processors to achieve consistency and quality through innovative product leadership

Pulses processors benefit from over 150 years of Bühler’s expertise and experience to improve their productivity and yield

London, United Kingdom, August 2014 – The Bühler Group, a global leader in

food processing and optical sorting solutions, continues to underpin excellence in the treatment of pulses by offering cutting edge technology at every stage of the production process, from pre-cleaning, cleaning, grading, hulling, drying and splitting, through to optical sorting, polishing and final bulk packing, for the world’s vast array of pulse products. Specialising in turnkey as well as individual solutions, Bühler represents the perfect technology partner for pulse processors everywhere.

Each individual component of Bühler’s complete pulse processing line offering, such as Bühler’s Pulsroll AIHI, which gives exceptional hulling performance with minimum loss of cotyledon with skin, is designed to operate with lower energy consumption and easier, smoother operation.

As pulse quality is often defined by appearance and by the absence of foreign material, Bühler has perfected a range of equipment to support this. The Bühler Destoner ensures the removal of even the smallest of stones from incoming

material, while the Bühler Gravomat Density Grader machine can be fed with 10 tons of product per hour and separate out 85% of the input into valuable grain. For the ultimate in peace of mind, the Bühler SORTEX optical sorting solutions remove even the most subtle light and dark colour defects, spots, damaged or blemished grains and foreign materials.

Each of Bühler’s modern pulse processing technologies ensure gentle processing, in combination with dramatic increases in yield, coupled with safety, ease of cleaning and handling, and seamless integration. The automation and sophistication they bring to the pulse production process help reduce damage, provide far more efficient separation of impurities and far greater recovery of valuable product, such as lighter grains, which would otherwise be rejected into the waste stream.

Automation and sophistication, in the integration of individual pieces of equipment, underpin Bühler’s turnkey pulse processing lines, which are now taking today’s pulse processors to new levels of productivity, consistency, safety and efficiency, not possible with

individual pieces of machinery. State-of-the-art automation and control systems can help pulse manufacturers achieve a higher degree of process flexibility and a higher output than ever before. They also help to reduce processors’ dependency on labour and offer smoother operation.

Ultimately, understanding evolving customer and market requirements is a key factor and Bühler’s experience with these extends far beyond the pulse industry. Knowledge of the intricacies involved in each stage of handling processes, not only for pulses but for sesame, spices, rice and more, coupled with the versatility of solutions Bühler can offer, support a wide range of processors in their bid to increase yield and ensure a more profitable product, clean and free from foreign material, time and time again.

October 2014 31



Overview of Indian Rupee

Venkatraman, Sr Commodity Analyst

Indian rupee after hitting the low of 63.34 against the dollar in January this year appreciated since then and strengthened to 58.32 during middle of May. After the formation of the new government lead by Mr Narendra Modi, rupee traded in the broader region of 58.32 and 61.74. Currently rupee is traded at 60.82 against the dollar as on Sep 24th.

The installation of new government with massive mandate since 1984 instilled the confidence of global as well as domestic investors. This has resulted in spurt in FPI/FII inflows in to the country.

FII/FPI in the current financial year as on August (Apr’14 to Aug’14) stood at 123081 crores as against 51649 crores invested in FY 2013-14 (Apr’13 to Mar’14).

The government in the first four months even though has not come out with big bang reforms, but it started on a right note with the introduction of stalled bills such as Insurance bill, passing of pensions bill in the parliament, clearing of various stalled projects which includes infrastructure, environmental clearances worth several billion dollars, and talks are progressing well with various stakeholders for speedy implementation of GST (Goods and Sales Tax).

Economy on road to revival Indian Gross Domestic Product (GDP) in Q1 of 2014-15 registers

an impressive growth of 5.7%, the highest in 9 quarters with the revival of Industry and manufacturing sectors. The Reserve Bank of India (RBI) expects GDP growth in increase to 5.5 in FY 2014-15, on the back of improvement in overall business sentiment and investment climate. But it was below the government’s projection of 5.8%.

IIP on recovery mode, but sluggish in JulyIndex of Industrial Production (IIP) failed to sustain the recent momentum and grew only by 0.5% in July as against the growth of 3.4% registered in June. The decline was mostly due to decline in manufacturing sector to the tune of 1%. But IIP recorded 3.3% in the first four months of the current FY 2014-15, as against the contraction of 0.1% in the corresponding period in FY 2013-14.

The Prime Minister on Sept-25th, rightly launched ‘Make in India’ to revive the manufacturing sector, which constitutes 75.53% of weightage in overall IIP, with an aim to turn India as global manufacturing hub.

With the cancellation of 214 of the 218 coal block licences by Supreme Court of India, is likely to cause serious supply disruptions, which may lead to acute power crisis. This may dampen the IIP revival in the coming months as electricity constitutes about 10.3% of the overall IIP.

Inflation moderates, rate cut unlikelyIndia’s WPI (Wholesale price Index) in August fell to its lowest level in nearly five years to 3.74%. Consumer Price Inflation (CPI), which is the bench mark for RBI to set policy rates, declined marginally from 8% in July to 7.8% in August, but far higher than the RBI targeted level of 6% by January 2016.

The RBI may not change the policy rates at least till the end of this year, as inflation continue to remain the prime focus.

US FED is likely to start hiking interest rates in the second half of next year, which may impact India and other emerging markets in the form of capital outflows. But the impact in India is likely to be minimal if the government fast tracks the clearances on various infrastructure pacts, and other agreements in different fields (which include modernization of railways) signed with Japan and China which may attract may FDI inflows in to the country.

Fiscal deficit is likely to improve India’s fiscal deficit is likely to be contained within the budget prescribed limit of 4.1% of GDP due to buoyant tax receipts and Government approved disinvestments in various PSU’s to the tune of Rs 44,000 crore in September, coupled with decline in fuel prices, which is likely to result in overall improvement in the balance sheet.

October 201432



View on Indian rupeeIndian rupee since the beginning of this May traded in the region of 58.35 and 61.74 against the dollar and is currently as on Sept 24 quoted at 60.96. On the higher side resistance is

seen at around 60.71 and only on breach of that level on a weekly basis may signal room for further appreciation going forward. In that scenario rupee is likely

to depreciate towards 63-63.50 against the dollar, which is likely to happen in Q1 of 2015. The main factor could be resurgent dollar and FED unwinding of bond purchase program and may spell out some sort of clarity on when it is going to hike the interest rates.

Gulfood Manufacturing to Provide Growth Gateway

World’s Leading F&B Processors to Explore MEASA Expansion Avenues and Regional Manufacturers to Source

Business improvement Tools at Dedicated Trade Event

Dubai, United Arab Emirates:Conceived to capitalise on

unprecedented market demand for the region’s F&B processing industry, Gulfood Manufacturing will debut as the Middle East, Africa and South East Asia’s (MEASA) biggest-ever trade show launch.

With more than 1,000 international suppliers participating in the specialist B2B platform, the inaugural show is expected to gather more than 10,000 regional and global trade visitors, as well another 1,500 delegates who will share the latest industry insights, market trends and state-of-the-art technology and product innovations in a cache of niche shows, conferences and technical workshops.

“The Middle East is rightly viewed as a key growth territory for the

global food processing, packaging and manufacturing sectors,” said Trixie LohMirmand, Senior Vice-President, Events & Exhibitions Department, DWTC. “Gulfood Manufacturing will give international equipment, logistics and cold chain suppliers a tailored investment platform to gain an operational foothold in one of the world’s fastest growing markets.”“Internationally, the sector is seeing multi-billion dollar investments and Gulfood Manufacturing will help facilitate and accelerate regional development. The fact the show will be the region’s largest-ever trade show launch speaks volumes about how international suppliers, producers and manufacturers in various segmented industry sectors view the burgeoning regional market.”

With GCC food imports forecast to reach US $ 53.1 billion by

2020 according to a report by the Economist Intelligence Unit, Gulfood Manufacturing will reverse the ‘finished foods’ focus of February’s annual Gulfood showcase and, instead, highlight the region’s ripe business potential as a leading international manufacturing and processing hub. MEASA’s largest-ever, industry-specific Hosted Buyer Programme will be a key asset in turning promise into product.

With established and industry newcomers from every corner of the globe heading to Gulfood Manufacturing to conduct high level networking and investment-driven discussions across the region’s food manufacturing sphere, the world looks set to follow suit.

For the rupee to appreciate further it has to breach the May month low of 58.35. Decline in international crude oil prices may help in rein the fiscal deficit, government resolve for more disinvestment and emphasis on manufacturing sector may result in further rupee appreciation.

Overall Indian rupee is likely to trade in the broader region of 58.35 and 63.50 against the dollar and this is valid till Q1 of 2015.

press releAse

CorporAte neWswww.CommodityIndia.com


34 October 2014

NABARD launches Rs 5,000-crore fund to push agriculture investmentsThe National Bank of Agriculture and Rural Development (NABARD) today launched Rs 5,000-crore rural credit fund aimed at increasing long-term credit in agriculture. Under the facility, NABARD will be refinancing agricultural term loans extended by the cooperative banks and regions rural banks (RRB) to agriculturists. The ultimate aim of the scheme will be to make credit for investment purposes cheaper and through that, motivate those engaged in agricultural activities to invest more

Source : http://retail.economictimes.indiatimes.com

Keventer, ITC, Future Group to invest in Bengal food processing sectorRecently, during state chief minister Mamata Banerjee’s maiden visit to Singapore, she met one of the South-East Asian city-state’s largest private equity (PE) firms, which has interests in agriculture and social infrastructure. The firm stated that it would invest over Rs 300 crore in the proposed Dankuni food park, promoted by Keventer Agro Ltd. West Bengal would also be witnessing investments worth Rs 3,500 crore to boost the food processing sector by providing infrastructure and setting up a mega food park.

Source : http://www.fnbnews.com

Government launches toll free number for perishable food transporters In order to bring down losses of perishable food items in transit, the government launched a toll free helpline number to provide assistance to refrigerated transporters stuck in the middle of highways and ensure smooth movement of such items to markets. The toll free calls will be handled by Mumbai-based Reefer Vehicle Call-in

Centre (RVC), set up jointly by the government's National Centre for Cold-Chain Development (NCCD) and Mahindra Logistics. The facility (toll no: 18002676223) is available 24x7 for all transport operators of horticultural, livestock, dairy, pharmaceutical and other refrigerated goods.

Source : http://economictimes.indiatimes.com

NCDEX forward trading in maize, sugar from Sept 25The National Commodities and Derivatives Exchange (NCDEX) has launched forward trading in maize and sugar contracts from September 25. NCDEX’s Spot Exchange, an arm of NCDEX which conducts electronic spot trading, is currently procuring sugar for the Maharashtra Public Distribution System. It is also procuring sugar in Haryana for the PDS system, while it has bought maize from growers in Karnataka. NCDEX Spot Exchange has procured tur in Gujarat and Karnataka from growers.

Source : http://www.thehindubusinessline.com

Tata Global Beverages relaunches Kanan DevanThe Indian tea market continues to be robust with a three per cent growth in consumption on a long term basis, according to Vikram Grover, Vice-President and Marketing Head (India & South Asia), Tata Kanan Devan Tea was re-launched in Kerala in a new brand packaging. With a strong presence in the Kerala market, Grover said Tata Tea is looking at a 30 per cent growth in its market share from the existing 25 per cent.

Source : http://www.thehindubusinessline.com

Hindustan Coca-Cola Beverages, Jain Irrigation to invest Rs 50 crore to boost mango yields Hindustan Coca-Cola Beverages and Jain Irrigation in a joint venture, plan to scale up their joint initiative Project Unnati with investments

CorporAte neWswww.CommodityIndia.com


35October 2014

of Rs 50 crore over 10 years to boost mango yields by enabling farmers with advanced technology. The joint initiative would reach 25,000 farmers over next 10 years; HCCBPL CEO T Krishnakumar told reporters "the joint initiative will result in creation of an ecosystem that delivers higher growth and income for farmers and helps us streamline supply chain and enhance productivity for our Indian brands Maaza and Minute Maid Mango."


Punjab to launch direct seeding of paddy Punjab, a major producer of foodgrain, is all set to introduce direct seeding of paddy, Punjab Deputy chief minister Sukhbir Singh Badal said to the reporters. Badal, after a meeting with Nuziveedu Seeds Chairman Prabhakar Rao and other senior officials in Hyderabad, said the direct seeding programme for paddy will be introduced initially on five acres of land in all blocks of Punjab. "Once this technique is successfully demonstrated in the field, we can initiate the process of popularising it among the farmers."


ICRISAT, Ramoji Film City tie-up for agriculture theme park International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) and Ramoji Film City signed a Memorandum of Agreement on sustainable management of water resources and agricultural development through establishment of an agriculture theme park at the film city. The theme park will highlight the importance of agriculture in dryland areas as well as irrigated farming systems," ICRISAT Director General Dr William D Dar said. "It is also important to engage with youth through various means to spread the message of sustainable agriculture, efficient water use and sustainable development


Cargill India setting up Rs500 crore corn milling plant near BangaloreCargill India Pvt. Ltd’s biggest investment in India till date, a new corn milling plant worth Rs.500 crore, is being set up near Bangalore. It will be ready by the second half of the next calendar year, helping the company to expand its business-to-business (B2B) and consumer foods portfolio in India, a top official with the company said. “The plant (in Bangalore) will process corn to produce glucose and other derivatives that will be used as sweeteners, thickeners and for other purposes in the food and healthcare industry,” said Siraj Chaudhry, chairman of Cargill India.

Source : http://www.livemint.com

Maiyas set to increase SKU range; Interested in contract manufacturingMaiyas Beverages and Foods is slated to augment its offering from the current 360 stock keeping units (SKU) to 390 with an addition of 30 products by March 2015. The company, which has also set its sights on new international markets, is also considering contract manufacturing. “We would start supplying to the Indian Railway Catering and Tourism Corporation (IRCTC). After that we would plan to launch in the regular market,” said Rakesh Somayya, head, marketing and international sales, Maiyas Beverages and Foods.

Source : http://www.fnbnews.com

SPot PrICeSwww.CommodityIndia.com


36 October 2014

Quarterly averages Monthly averages

Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar June July AugustCommodity Unit 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 2014 2014 2014

EnergyCrude oil, Brent a/ $/bbl 112.91 103.00 110.1 109.40 107.09 111.09 107.00 101.09Crude oil, Dubai a/ $/bbl 108.03 100.80 106.2 106.70 104.04 108.00 105.08 101.09Crude oil, West Texas Int. a/ $/bbl 94.32 94.20 105.8 97.40 98.07 105.20 102.09 96.04Natural gas, Europe a/ $/mmbtu 11.84 12.40 11.6 11.40 11.03 9.08 9.03 9.01Natural gas, US a/ $/mmbtu 3.49 4.00 3.6 3.80 5.02 4.06 4.00 3.09Natural gas LNG, Japan a/ $/mmbtu 15.77 16.00 16 15.30 15.30 15.05 14.06 15.05

Softs & BeveragesCoffee, Arabica (ICO indicator price) b/ ¢/kg 335.50 319.90 298.2 284.00 383.00 436.00 434.00 470.00Coffee, robusta (ICO indicator price) b/ ¢/kg 227.80 214.30 203.6 185.00 212.00 218.00 224.00 221.00Sugar EU domestic b/ ¢/kg 43.06 42.70 43.3 44.00 45.00 44.00 44.00 43.00Sugar US domestic b/ ¢/kg 47.56 43.40 44.6 46.00 47.00 56.00 55.00 56.00Sugar, world b/ ¢/kg 40.90 38.60 37.7 39.00 37.00 40.00 40.00 38.00Tea, Colombo auctions b/ ¢/kg 338.40 328.5 337.5 377 372 358 351 349Tea, Kolkata auctions b/ ¢/kg 258.10 297.9 276.1 256 256 306 329 290Tea, Mombasa auctions b/ ¢/kg 287.30 235.4 222.9 213 229 191 210 203

Fats and Oils Coconut oil - Indonesia (c.i.f-Rotterdam) b/ $/mt 837.00 839 913.3 1175 1343 1402 1260 1177

Copra - Indonesia (c.i.f-N.W.Europe) $/mt 553.00 560 603.3 791 896 934 861 770Groundnut oil - any origin (c.i.f-Rotterdam) b/ $/mt 2002.00 1400 1,693.7 1575 1311 1228 1260 1260

Palm oil - Malaysia (c.i.f-N.W.Europe) b/ $/mt 853.00 850.7 827.3 897 911 857 841 766Palmkernel oil- Malaysia (c.i.f-Rotterdam) $/mt 824.00 836.7 872.3 1057 1278 1235 1116 947

Soybean meal-any origin (c.i.f-Rotterdam) b/ $/mt 531.00 528.3 551.7 570 582 553 502 510

Soybean oil- Dutch b/ $/mt 1160.00 1070.3 1,006.7 991 977 936 888 857Soybeans-US (c.i.f. Rotterdam) b/ $/mt 592.00 505.3 527.3 555 552 516 480 460

GrainsBarley - Canadaian b/ $/mt 239.50 229.7 191 150.7 129.05 132.6 132.4 134.06Maize- US b/ $/mt 305.00 291.3 241.9 199.4 209.09 202.4 182.7 176.04Rice, Thailand, 5% broken white rice b/ $/mt 562.10 546.4 477.3 442.7 443.07 397 422 445Rice, Thailand, 25% broken white rice b/ $/mt 538.00 509.4 420.3 408.9 375 356 375 414Rice, Vietnam 5% 401.50 387.8 433.2 397.2 391.02 404.5 435.4 460.06Sorghum, US $/mt 292.00 259.9 385.9 202.1 224.02 204.7 193 185.04Wheat, Canada $/mt NR NR NR NR NR NR NR NRWheat, US, Hard Red Winter b/ $/mt 321.40 313.8 305.8 308 275.05 306.5 280.4 263.04Wheat ,US ,Soft Red Winter $/mt 297.60 275.2 257.7 276.4 264 236.6 218.3 220.04

Other Raw MaterialsCotton A Index b/ ¢/kg 198.2 204.3 202.4 192.0 207.0 200.0 185.0 163.0Rubber RSS3, SGP b/ ¢/kg 315.5 290.5 259 259.0 225.0 209.0 202.0 185.0Rubber TSR20, SGP (New) ¢/kg 296.2 244.6 234.8 235.0 198.0 171.0 169.0 166.0

Metals and MineralsAluminum (LME) b/ $/mt 2000.0 1836.1 1,782.8 1767 1709 1839.0 1948.0 2030.0Copper(LME) b/ $/mt 7918.0 7161.3 7,086.3 7162 7030 6821.0 7113.0 7002.0Gold (UK) $/toz 1631.0 1415.1 1,328.6 1272.0 1293.0 1279.0 1311.0 1295.0Iron ore, spot, cfr China $/dmt 148.5 125.5 132.7 135 120 93.0 96.0 93.0Lead (LME) b/ $/mt 229.0 205.3 210.2 211.4 2101 2107.0 2193.0 2237.0Nickel (LME) b/ $/mt 17296.0 14967.1 13,956 13909 14461 18629.0 19118.0 18600.0Tin (LME) b/ $/mt 24,018 20,902 21,314 22,910 22,636 22762 22424 22231Zinc (LME) b/ $/mt 202.9 NR 186.1 190.8 202.6 2128 2311 2327

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

Source: World Bank

arrIVaLS & PrICeSwww.CommodityIndia.com


37October 2014

Arrivals and Prices of Major Commodities

Source :Chart-1:Trade Source, Chart-2:Krishi marata vahini, Chart-3,8_Krishi marata vahini, Chart-5,7 -Trade Sources Chart4: MSAMB, Chart6: RSAMB, Chart9,10:NHRDF

arrIVaLS & PrICeSwww.CommodityIndia.com


38 October 2014

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.

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

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