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SPICES

* Spices complex on NCDEX ended down on Tuesday. Jeera futures slipped about one per cent on sluggish demand and rise in arrivals in the spot market. Dhaniya andturmeric futures declined as well.

* The export of spices from India during Apr-Dec declined 7.5% on year to 1.2 mln tn, according to data from the Spices Board India. In terms of value, exports rose marginally to 230.7 bln rupees. Sluggish demand for chilli, jeera, turmeric, coriander and fenugreek weighed on exports.

* The exports of jeera during Apr-Dec declined 24.5% on year to 173,796 tn, from 230,120 tn a year ago.

* India exported 116,408 tn of turmeric in Apr-Dec, down 20.6% on year. Coriander exports were down 12.8% on year at 37,566 tn, data showed.

* Exports of small cardamom rose 68.3% on year to 7,337 tn. The huge rise was also seen in ginger exports, which rose 57.5% on year at 130,091 tn.

* Exports of chilli in Apr-Dec were down 7.6% on year at 435,725 tn, while mint product exports were at 21,386 tn, up 4.8% on year, according to the data.

* According to the second advance estimates by Gujarat state agriculture department, jeera production is seen declining to 236980 tons in 2021-22, down 41 per cent year on year. Area is seen at 289000 ha as against 473800 ha a year ago. Coriander production is seen declining as well to 211680 tons compared to 221240 tons in 2020-21.

* Government sees 2020-21 coriander output at 720000 tons compared to 701000 tons a year ago.

* Government sees 2020-21 turmeric output at 1.11 million tonnes compared to 1.15 million tons a year ago.

* Output of small cardamom is seen rising by 100% on year to 22520 tons according to the Spices Board.

COTTON

* India's cotton acreage in 2022-23 (Jul-Jun) is expected to rise 9% on year to 13.2 mln ha, as per the median of the estimates of 10 prominent players in the cotton value chain polled by Informist.

* Stakeholders in the textile industry have urged the government to extend duty-free cotton imports till Dec 31 to boost textile exports and help address the dearth of raw material in the market.

* The International Cotton Advisory Committee has raised its estimate or global cotton prices for 2021-22 (Aug-Jul) by 2 cents per pound from the previous month's projection to 115 cents per pound. The committee estimated global consumption at 26.2 mln tn in the 2021-22 season, the highest since 2018-19. Global consumption was at 25.7 mln tn in the previous season. The higher estimate is because of firm demand from Pakistan, Turkey, Bangladesh and Vietnam.Bangladesh and Vietnam have limited domestic production of cotton and thus require imports to support almost all their manufacturing needs. The committee estimated global ending stocks at 20.9 mln tn, slightly higher than 20.6 mln tn in the previous season. Global cotton export for the season is estimated at around 10.1 mln tn, as against 10.6 mln tn a year ago.Global production for the ongoing season is estimated higher at 26.4 mln tn, compared with 24.4 mln tn in the previous season. The rise has largely been attributed to higher production in Pakistan, Brazil and the US.In the US, cotton production is estimated at 3.8 mln tn, as against 3.2 mln tn a year ago. However, in India, cotton output is expected to fall to 5.8 mln tn, compared with 6.0 mln tn in the previous year.

* The UK-based Cotton Outlook has revised upward its estimate for global cotton production in 2021-22 (Aug-Jul) by 15,000 tn to 25.54 mln tn, the agency said in a report. The revision has been made as production in African Franc zone is expected to be slightly higher. Cotton production in India, is seen at 5.5 mln tn. The production in China is seen at 5.8 mln tn, while the US is likely to produce 3.8 mln tn. The agency has raised its estimate for global consumption in 2021-22 by 25,000 tn to 25.8 mln tn due to rise in demand from Indonesia.Global cottonending stocks for the ongoing 2021-22 season are estimated at 229,000 tn.

* The US Department of Agriculture has revised its estimate for cotton ending stock in India to 8.3 mln bales (1 US bale = 218 kg) for 2021-22 (Aug-Jul), from 8.0 mln bales projected a month ago.The increase in India's ending stock estimate is attributed to lower exports in the current season. The country's exports are projected at 5.2 mln bales, as against 5.5 mln bales a month ago.Persistently high prices in the domestic market have made India's cotton uncompetitive, weighing on exports of the commodity. According to trade sources, in the ongoing marketing year, around 3.5 mln bales (1 bale = 170 kg) of Indian cotton were exported till March, sharply lower than a year ago. In Oct-Mar of 2020-21, India had shipped 4.3 mln bales. The agency maintained its estimate for India's production and domestic consumption for 2021-22 at 26.5 mln bales and 26.0 mln bales, respectively. Further, the agency has scaled up its global production estimate to 120.2 mln bales from 119.9 mln bales a month ago. Global cotton consumption is seen lower at 124.1 mln bales in 2021-22, compared with 124.5 mln bales a month ago. Exports are estimated at 45.8 mln bales, as against 46.3 mln bales a month ago. The agency has raised its 2021-22 global ending stocks estimate to 83.4 mln bales from 82.6 mln bales estimated a month ago.

* The Cotton Association of India has cut its production estimate for the 2021-22 (Oct-Sep) marketing season to 33.5 mln bales (1 bale = 170 kg), from 34.3 mln bales projected a month ago. The cut in estimate can be attributed to some crop loss because of excess rain in November in the key producing states that impacted quality of crop. Of the total crop, 26.3 mln bales had arrived in markets across India till March. Estimate for exports in the ongoing marketing year has been maintained at 4.5 mln bales. India shipped around 3.5 mln bales of cotton till March.The association has also maintained its estimate for domestic cotton consumption at 34.0 mln bales, and imports at 1.5 mln bales.The ending stock for the 2021-22 season has been estimated at 4.0 mln bales, as against 4.8 mln bales projected a month ago.

* Cotton farmers in the US intend to plant the fibre over 12.2 mln acres in the 2022-23 (Aug-Jul) season, up by 9% from the previous year, the USDA said in its initial planting survey report for the season. The largest increase in sowing area is expected in Texas.A rise in acreage in the coming season is attributed to high cotton prices.

* Persistently high prices in the domestic market have made India's cotton uncompetitive, weighing on exports of the commodity in 2021-22 (Oct-Sep) season. In the ongoing marketing year, around 3.4 mln bales of cotton were exported till mid-March, a consignment of another 200,000-300,000 bales is expected to ship in coming days. Along with these consignments, by the end of March, exports may touch 3.6 mln bales so far this year, which is sharply lower than a year ago. In Oct-Mar of 2020-21, India had shipped 4.3 mln bales. Most consignments have been shipped to Bangladesh, followed by China, Indonesia and Vietnam. Of the total shipped quantity, Bangladesh bought around 2.5 mln bales so far this season. Domestic prices are at a record high level due to the tight supply situation in the market. A rise in domestic mill consumption and a decline in production due to untimely rains have led to a drop in ending stock estimates. Exports during Apr-Sep is seen declining further because of the elevated domestic prices as it makes overseas sales economically unviable, said Dharmendra Jain, director of Ahmedabad-based D.P. Cotton. Furthermore, exports to Bangladesh, has also slowed down because they have already booked their consignments. Now, they are only buying to meet immediate requirements in case of a delay in shipments from regions such as the US and Brazil. Industry experts say cotton exports this season might stand at 4.0-4.5 mln bales. In 2020-21 (OctSep), India exported 7.5-7.8 mln bales of cotton, with Bangladesh, China and Vietnam being the major buyers.

* The government has increased the maximum sale price of genetically modified Bollgard-II Bt cotton seed for 2022- 23 (Apr-Mar) by 43 rupees to 810 rupees for a 450-gm packet, according to a notification.

* The US Department of Agriculture has scaled down its estimate for cotton production in India to 26.5 mln bales (1 US bale = 218 kg) for 2021-22 (Aug-Jul), from 27.0 mln bales projected a month ago. The cut in India's output estimate is attributed to some crop loss because of excess rains in November in most key growing states. On the global front, the agency has scaled down its production estimate to 119.9 mln bales from 120.2 mln bales a month ago. The downward revision is mainly due to a likely smaller crop in India. The agency has lowered its 2021-22 global ending stocks estimate to 82.6 mln bales from 84.3 mln bales estimated a month ago. Global cotton consumption is seen a tad higher at 124.5 mln bales in 2021-22, from the previous month's estimate of 124.4 mln bales.

* The US Department of Agriculture's Foreign Agricultural Service has further scaled down its estimate for cotton output in India in 2021-22 (Aug-Jul) to 27.4 mln bales (1 US bale = 218 kg) from 27.7 mln bales projected in January. The reduction in cotton output estimate is attributed to crop damage due to rains in late September in key producing regions of Telangana. Meanwhile, the agency has raised its estimate for India's cotton consumption in 2021-22 to 26.5 mln bales from 26.0 mln bales estimated a month ago. Trade sources indicate that mill consumption is being supported by robust textile and apparel exports. Mills are reporting good margins and making investments in additional spinning capacity for the long-term. Exports during the season are maintained at 5.9 mln bales with Bangladesh, Vietnam, China, and Indonesia being the top export destinations. Bangladesh continues to be the major buyer of Indian cotton with almost 60% export market share. The estimate for imports into India in the 2021-22 crop year has been maintained at 1.0 mln bales. The closing stock of cotton for the country has been pegged at 9.7 mln bales, compared with 10.8 mln bales estimated the previous month.

* The new season for cotton which started on Oct 1, is expected to be good for farmers as the market price of the fibre is currently more than the minimum support price, due to firm demand and a rise in global prices.

* Sowing of cotton across the country has ended and farmers have sown the crop across 12 mln ha in the 2021-22 (Jul

OTHERS

* The government will purchase an additional 136,225 tn chana in Gujarat, a government official said. "The Centre on May 15 has given the nod to an additional quantity on the request of the Gujarat government as the state's 90-day procurement window is still open for 10-12 days," the official said. The government, through its nodal agency National Agricultural Cooperative Marketing Federation of India, had started chana procurement in Gujarat on Mar 1 for the initially sanctioned quantity of around 400,000 tn. As many as 255,099 farmers across 117 centres of Gujarat have so far sold 502,164 tn chana to NAFED, the official said. The government has wrapped up the procurement drive under the price support scheme in states such as Karnataka, Telangana and Haryana, the official said. NAFED bought a total of 133,628 tn from 100,472 farmers across 282 centres of Karnataka, Telangana and Haryana. The government agency has so far purchased 1.8 mln tn chana from 881,071 farmers across 2,981 centres in all key producing states. This is almost 19% of the estimated production in the country for the 2021-22 (Jul-Jun) crop year. NAFED is procuring chana at the minimum support price of 5,230 rupees per 100 kg for the 2022-23 rabi marketing year to arrest the fall in price, and aims to buy a total of 3.1 mln tn until July.

* Recent report from U.S. Department of Agriculture (USDA) reveals that Chickpea area is likely to fall by 18 percent to 303,600 acres as growers are not less interest to sow Chickpea in a big way. However, small Chickpea area is estimated to increase from 2021 by 5 percent to 62,100 acres. Area under the large Chickpea in 2022 is estimated to be at 241,500 acres down by 22 percent from previous year.

* The Securities and Exchange Board of India has asked the National Commodity and Derivatives Exchange to not launch any new chana contracts on its platform till further notice, the market regulator said in a release on August 16, 2021.

* India’s guar export in Oct’21-Feb’22 is up by 28% to 1,25,921 MT as compared to 98,379 MT previous year same period. Russia bought 3,579 tonne (17.44%) of the total guar gum exports in Feb’22 as compared to 3,519 tonne (16.47%) previous months

* • India’s guar gum exports decreased in the month of February 2022 by 4% to 20,518 tonne compared to 21,373 tonne during previous month at an average FoB of US $2,326 per tonne as compared to US $2,171 per tonne previous month. However, the gum shipments were up by 14.53% in Feb’2022 compared to the same period last year. Of the total exported quantity, around 6,406 tonne (31.22%) bought by US, Russia bought 3,579 tonne (17.44%), Germany bought 2,356 tonne(11.48%), China bought 1,230 tonne (5.99%), and Canada bought 897 tonne(4.37%). Additionally, India’s guar split exports increased in the month of Feb’2022 by 35.60% to 5,485 tonne compared to 4,045 tonne previous month at an average FoB of US $ 1,815 per tonne compared to US $ 1,780 per tonne previous month. However, the guar split shipments gone up by 85.03 % in Feb’22 compared to the same period last year. Of the total exported quantity, around 3,460 tonne (72.20%) bought by China, US bought 760 tonne (13.86%),Mexico bought 405 tonne(7.38%) and Switzerland bought (6.56%).

* Global production of natural rubber rose 13.6% on year to 941,000 tn in April, and demand is estimated to have increased 0.3% to 1.21 mln tn, the Association of Natural Rubber Producing Countries said in a monthly report. Despite market fundamentals remaining favorable, the industry was severely affected by external global events, the association said. The World Bank has revised downwards its projection for global economic growth to 3.2% for 2022 from 4.1%, due to Russia's invasion of Ukraine and lockdowns related to COVID-19 in China as they pose uncertainty and may slow down prospects for global economic recovery.

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