Detailed Report on Agriculture and Commodity Market(July 30, 2024 – August 3, 2024).

Tuesday, July 30, 2024

1. Release of India's First Comprehensive Handbook on Bamboo Cultivation

   Even: The release took place at the National Symposium on Bamboo in New Delhi.

   Significance: This handbook aims to provide detailed guidance on bamboo cultivation practices, addressing various aspects such as soil conditions, pest management, and harvesting techniques. It is expected to enhance bamboo farming, which has economic and ecological benefits.

2. Conoor Auction

   Impact: Unfavorable weather conditions in tea-growing regions have led to reduced tea arrivals at the Conoor auction.

   Market Expectation: Prices are anticipated to remain firm due to the declining crop. Lower production in the North may increase demand for South Indian tea, potentially influencing trade patterns.

3. Coffee Crop Prospects

   Concern: Excessive rainfall in key coffee-growing areas like Kodagu, Chikkamagaluru, and Hassan is posing risks for the 2024-25 coffee crop.

   Potential Issues: Heavy rain could lead to berry drop and fungal infections, which may reduce coffee output.

Wednesday, July 31, 2024

1. ICAR Releases Herbicide Tolerant Rice Varieties

   Varieties: Pusa Basmati-1979 and Pusa Basmati-1985.

   Concerns: Farmers' bodies have expressed concerns regarding potential risks to public health and the environment related to these new varieties.

2. Impact of Temperature and Precipitation on Crop Production

   Findings: Rising temperatures and changing precipitation patterns are projected to impact agricultural productivity significantly:

     Rainfed rice: 20% reduction by 2050, 47% by 2080.

     Irrigated rice: 3.5% reduction by 2050, 5% by 2080.

     Wheat: 19.3% reduction by 2050, 40% by 2080.

     Kharif Maize: 18-23% reduction by 2050 and 2080.

     Soybean: Slight increase of 3-10% by 2050 and 14% by 2080.

   Method: The findings are based on computer simulation modeling studies.

3. Sugarcane Acreage and Output

   ISMA Projection: Sugar output for 2024-25 is projected at 331.10 lakh tonnes, down from 339.95 lakh tonnes the previous year. The decline is attributed to reduced cane acreage and production in Maharashtra and Karnataka.

Thursday, August 1, 2024

1. Sistema.bio Carbon Trading Initiative

   Details: US-based Sistema.bio began carbon trading on the Gold Standard Marketplace. This initiative aims to offer discounts on biodigesters for smallholder farmers, helping them convert animal waste into renewable energy and organic fertilizer.

2. Benchmark Palm Oil and Sugar Prices

   Palm Oil: The October delivery contract on BMD fell by 6 ringgit to 3909 ringgit per tonne.

   Raw Sugar: October raw sugar futures declined by 0.2% to 19.08 cents per pound.

3. Cotton Acreage

   Current Status: Cotton acreage till July stands at 102.05 lakh hectares, down from 105.66 lakh hectares the previous year. Specific state data shows varied changes:

     Gujarat: 20.98 lakh hectares (25.39 lakh hectares last year).

     Rajasthan: 4.94 lakh hectares (7.73 lakh hectares last year).

     Punjab: 1.0 lakh hectares (2.14 lakh hectares last year).

     Karnataka: 6.09 lakh hectares (2.44 lakh hectares last year).

     Telangana: 15.22 lakh hectares (14.13 lakh hectares last year).

     Andhra Pradesh: 1.60 lakh hectares (1.32 lakh hectares last year).

     Maharashtra: 39.69 lakh hectares (38.33 lakh hectares last year).

4. Mahyco and Savannah Seeds Joint Venture

   Company: "Paryan"

   Focus: This new agricultural climate technology company aims to tackle challenges in food production and sustainability, with a focus on rice and wheat.

Friday, August 2, 2024

1. Groundnut Sowing in Gujarat

   Update: Groundnut sowing has increased to 18.82 lakh hectares, up 16% from 16.21 lakh hectares in 2023.

2. Cotton Sowing in Gujarat

   Update: Cotton sowing has reached 23.15 lakh hectares, which is 16% less than the 26.82 lakh hectares sown last year.

3. Soybean Sowing in Gujarat

   Update: Soybean sowing has surpassed 2.92 lakh hectares, showing an 11% increase from the previous year.

4. Moong Crop Arrivals

   Gadag and Bagalkot: Moong arrivals have started, with a 228% rise in sown area compared to July 19, 2024.

   Rajasthan: Kharif Moong sown in 21.62 lakh hectares as of July 29, 2024.

5. Rainfall and Reservoir Levels

   Rainfall: Pan India has experienced 9% surplus rain, but North West regions are below normal.

   Reservoir Levels: Storage in India's 150 major reservoirs has topped 50% for the first time in five months.

6. Raw Sugar and White Sugar Futures

   Raw Sugar: October futures fell 1.6% to 18.64 cents per pound.

   White Sugar: October futures declined 1.4% to $527.40 per tonne.

Saturday, August 3, 2024

1. Tea Arrivals at Kochi Auction

   Impact: Rain and inclement weather have affected tea arrivals at the Kochi auction.

2. Pepper Demand in Kerala

   Trend: Demand for pepper in Kerala is declining due to heavy rain and cheaper imports from Sri Lanka, affecting local pepper prices.

3. Crops Exceeding Normal Coverage

   Maize: 82.25 lakh hectares (74.56 lakh hectares last year).

   Soybean: 123.77 lakh hectares (120.51 lakh hectares last year).

   Sugarcane: 57.68 lakh hectares (57.11 lakh hectares last year).

In conclusions, it is highlighted as follows:-

1. Advancements and Challenges in Agriculture

   Bamboo Cultivation: Release of India's first comprehensive handbook on bamboo cultivation represents a significant step towards improving the management and productivity of bamboo farming, potentially leading to economic and environmental benefits.

   Rice Varieties:Introduction of herbicide-tolerant rice varieties by ICAR reflects advancements in agricultural technology, though concerns about their impact on health and the environment need addressing.

2. Climate Impact on Crop Production

   Rising Temperatures and Precipitation: Projected reductions in crop yields for rainfed and irrigated rice, wheat, and maize due to changing climate conditions underscore the urgent need for adaptation strategies. Conversely, soybean is expected to see a slight increase, indicating potential shifts in crop viability.

   Coffee and Tea: Adverse weather conditions, including excess rain, are negatively impacting coffee and tea production. This highlights the vulnerability of these crops to climatic variability and the potential for supply shortages.

3. Market Dynamics

   Tea and Sugar Prices: Reduced tea arrivals and declining sugar output suggest potential price increases in these commodities.

   Palm Oil and Sugar Futures: Fluctuations in palm oil and sugar futures reflect ongoing market volatility, influenced by global supply and demand factors.

 

4. Regional and Crop-Specific Trends

   Groundnut and Cotton: Increases in groundnut sowing and decreases in cotton acreage in Gujarat indicate changing agricultural priorities and market responses. The significant rise in groundnut sowing could signal higher future production, while reduced cotton sowing may affect supply.

   Moong and Soybean: Increased sowing of moong and soybean suggests a shift in cropping patterns, potentially driven by market demand and climatic conditions.

5. Sustainability and Technology

   Carbon Trading and Agricultural Technology: Initiatives like Sistema.bio's carbon trading and the establishment of "Paryan" by Mahyco and Savannah Seeds highlight efforts to promote sustainability and technological innovation in agriculture. These efforts aim to address key challenges such as waste management and food security.

6. Water Resources

   Reservoir Levels: Improved reservoir levels across major reservoirs indicate a better water availability situation, which could positively affect irrigation and overall agricultural productivity in the near term.