World coffee production to fall in 2007-08

NEWS DIGEST

World coffee production in 2007/08 is expected to fall to 109-112 million 60-kg bags, down from 122.3 million in 2006/07, International Coffee Organisation Executive Director Nestor Osorio Londono said on Monday. Total demand is seen at 118 million to 120 million bags, he said in a report, adding that It was clear that there would be a deficit in production vis-a-vis current demand.

"The current supply and demand structure has reinforced the firmness in prices recorded in December and early 2007, which gives me reason to state that the recovery in prices should be maintained," Osorio said in the ICO's monthly market report.

Participants in a Reuters poll issued on Friday on average estimated that world coffee production in 2007/08 would fall to 117 million bags, down from 125 million in 2006/07.

Price Stabilisation Fund for plantation to be revamped

The Government is likely to revamp the Price Stabilisation Fund (PSF) for plantation crops and increase the insurance cover for workers to Rs one lakh.

The Group of Ministers on Plantations, which recently met under the chairmanship of Agriculture Minister Sharad Pawar, also recommended that the weather-linked insurance scheme for coffee growers should be implemented with an expenditure of about Rs 23 crore.

The GoM, which held its first meeting on January nine, more than nine months after its constitution, said the PSF should be made more dynamic taking into account the seasonal fluctuations in prices.

It also felt the delivery mechanism should be improved. At present the coverage under the personal accident insurance is Rs 25,000.

More wheat import unlikely by pvt trade due to high prices

Even though the government has extended the duty-free wheat imports by private trade till February, the user industries such as flour millers, biscuit and bread manufacturers are unlikely to import much quantity.

The reasons are "" high global prices of the commodity and forecast of a higher domestic output owing to increased area under coverage for wheat.

"We do not see much import happening as international prices of wheat have firmed up," Roller Flour Mills Association of India Secretary Veena Sharma told PTI.

International prices of wheat have gone up to 252 dollar (Rs 11,167) per tonne from 230 dollar per tonne a month-ago when the last contract was finalised, she said. Wheat prices in India are ruling at Rs 10,980 per tonne.

Ruchi Soya to set up biofuel capacity

Ruchi Soya Industries will look at setting up biofuel capacities, as soon as the government's policy on biofuel is out, a top official of the company said.

"It makes sense for Ruchi to look at getting into bio-fuel as it involves low capital investment and high returns," Dinesh Shahra, managing director, Ruchi Soya Industries, said at an analysts' meeting today.

The oilseeds industry, according to him, is keenly awaiting government's policy on biofuel.

Globally, biofuel business is government driven. "We are ready to take on this business and Ruchi will be one of the biggest players considering its size," Shahra said.

Dhanuka Pesticides to introduce paddy hybrid seeds in 2007

Dhanuka Pesticides Ltd. will introduce paddy hybrid seeds in the current calendar, Managing Director M K Dhanuka said.

He said the company has tied up with Jawaharlal Nehru Agriculture University in Jabalpur for the seeds, which have a yield potential of about 6-6.6 tonne a hactare compared with the average paddy yield of 2.8 tonne a hactare in India.

"The initial trials have been very encouraging in terms of yield and we will introduce the hybrid paddy seeds in the market by April-May," Dhanuka said.

He said the hybrid paddy crop need less irrigation and the crop can be harvested 20-30 days earlier than normal. Dhanuka said the introduction of hybrids is part of the company's strategy to shift focus to the seed business, which is 'more profitable than pesticide business'.

He said pesticide consumption was the highest in cotton, but has reduced by over 50 per cent since the introduction of genetically modified Bt cotton.