Possibility of ban on export as sugar becomes bitter

- Commodity Current - Jayavadan Gandhi

Nowadays, the government is trying hard to control the price of food items in view of the state elections. For some time now, there has been a decrease of 10 to 15 percent in the markets of agricultural commodities including gram, mustard, wheat, edible oil, except for a few items. Some commodities have fallen below market support prices. In order to regulate the growing market of pulses, the government is putting pressure on stockists, mills, traders to declare stocks. The government has focused on increasing the prices of Tuvar and Udd pulses. However, gram prices have fallen in the range of Rs 4600 to 4700 with a fall of Rs 200 to Rs 400 in the last fortnight. As the support price of gram fell below 5335 in the market, there is also resentment among the farmers. This year, while the production of pulses has been good, exports have also almost doubled with an 85 percent jump to $6.6 million. Also the export of spice crops has also been good. A ban was imposed on the export of wheat last year in May. However, more than 46 lakh tonnes of wheat has been exported. At present, there is a strong possibility that a ban will be imposed on the export of sugar like wheat to control the rising prices in the eyes of the government. Sugar prices have hit an eleven-year high in global markets as output falls. The government has released about 24 lakh tonnes in the market for the next month to prevent price rise. Out of the green signal given by the government for the export of 60 lakh tonnes of sugar, 90 percent of the goods are going abroad. And now the government is in action mode so that the remaining goods are not collected abroad, the situation is like locking the stables after the horses are released. Currently, Bangladesh is the largest consumer of Indian sugar. After reviewing the domestic production and demand, the export quota will be continued or discontinued after the meat mandai.

In edible oilseeds, mustard market has decreased by fifteen percent. With the production of mustard around 113 lakh tonnes, the market has collapsed due to the increase in imports due to the zero duty policy. As prices in the range of 8000 to 10000 rupees last year have come down to around 5 to 6 thousand, there is an atmosphere of concern among the farmers. Recession has taken hold in castor too. The prices of castor at this time last year were around 1400 rupees, but this year the production is low, around 1200, and now the needy farmers are selling it.

As the prices of castor continue to collapse, the poor farmers have hoarded castor goods. Currently, the season in Mavtha is ending earlier than expected. The entire matter has become a subject of investigation as the prices are falling despite the decline in production and incomes as well.

The condition of agricultural crops has deteriorated due to floods. In most of the commodities, including tobacco, cumin, millet, wheat, isabgol, fennel, the farmers have come back against expectations of good prices. Among the spices, only cumin is the only one that has made the trades risky as the market has hit an all-time high of 45,000 quintals due to fears of speculation. Reports of losses of crores of rupees in cumin container trades have jolted the market. Due to high prices, the revenue of cumin in big market yards like Unza has come down significantly to barely 12 to 15 thousand sacks. Farmers and merchant stockists are currently in a wait and watch mode. Red rice boom in cumin has been overshadowed by reports of spoilage of cumin crop due to drought, disrupting the demand supply balance. This kind of unbridled boom for the first time in the history of cumin leaves the market stunned. Despite the continuous upper circuit of four and six percent in Jira futures, the boom is not coming under control. Due to the rapid boom in cumin, the activities of adulteration in cumin have also increased. With the sweet eye of the system, the miscreants are getting an open field. However, there is a possibility that cumin prices will still rise to new highs and set a new record, with the support of rising demand from China.