Wheat prices up 4%, more hikes expected on festive demand
Wheat prices have jumped 4% in the last one week and festival season demand expected to kick in from mid-September, they are expected to rise further, despite the government claiming that the country has sufficient stocks.
Denying some reports claiming that India was going to import wheat, the Department of Food and Public Distribution of the central government issued a statement on Sunday saying the country has enough stock of wheat to take care of its domestic requirement and for the public distribution system.
Mill grade wheat prices increased by Rs 1/kg last week to range between Rs 24kg to Rs 25.50/kg in north India. “Heavy rainfall in the region reduces movement of wheat and the unwillingness of the stockists, who expect higher prices, resulted in prices going upward,” said Navneet Chitlangia, vice president, the Roller Flour Mills Federation of India. (RFMFI).
Trading associations seek ban on turmeric futures
Marathwada Vidarbha Turmeric Trade Association has written a letter to the Union minister of state for finance Pankaj Choudhary, demanding a ban on trading in turmeric futures market on the NCDEX and BSE.
The association alleged that some traders and corporates are making a profit. The prices are being decided according to the convenience in the futures price, it said, and the farmers of Maharashtra are facing a lot of loss.
“Some handful of traders and companies store around 2/3 of total turmeric produced in India in the forward market warehouse and then they determine the rate of 97% of production,” the industry body, one of the largest associations of turmeric traders, said in the letter.
Price hike to limit slide in profitability of organised dairy sector: CRISIL
The recent hike in retail milk price by Rs 2 per litre will limit the slide in profitability of the organised dairy sector to 50 basis points (bps) on-year this fiscal, despite a higher than anticipated rise in procurement prices, and transport and packaging costs, said CRISIL NSE -2.08 % Ratings on Tuesday.
Despite lower profitability, comfortable balance sheets and better working capital management will keep the credit profiles of players stable. A CRISIL Ratings analysis of 40 rated dairies that account for 60% of the organised segment revenue indicates as much.
Anand Kulkarni, Director, CRISIL Ratings said “Milk procurement prices have shot up 8-10% in the past six months because of lower-than-expected milk collection — on account of cattle diseases in some of the major milk-producing states — and high prices of cattle feed. Additionally, the surge in crude price has translated into a significant increase in transport and packaging costs.
This necessitated a second price hike in the past six months. We don’t anticipate any more price hikes as an expected improvement in milk collection and softening input prices will support profitability in the second half of the fiscal.”
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