Commodity- 19-February, 2007

Wheat export banned for the whole year 2007

Government banned export of wheat for whole year 2007. The measure is taken to control prices of essential food items. Agro commodities including wheat had contributed substantially for the inflation. The inflation for the week ended on 27th January, 2007 was stood at 6.58 %.

The estimated production of wheat for the year 2007 is stood at 72.5 million tones and ban on export has been ordered to ensure that Food Corporation of India (FDI) has sufficient stock for the year 2007.

In Punjab and Hariyana, a sudden competition between FDI and large trading houses to procure wheat has converted market in to battlefield. The government has increased the support prices to Rs 750 per quintal, from Rs 650 per quintal. However from market sources it is learned that large trading companies has booked a huge amount of wheat at Rs 850 per quintal.


Other Commodities

Unfavourable weather conditions and irregular rainfall may damage potato crop substantially. The production is expected to reduce this year and resultantly potato future rose sharply on good demand from trader’s expectations of fall in production.

Both Agra and Tarkeswar varieties were closed with positive note. During the week potato gained almost Rs 93 per quintal. On Friday, 9th February potato touched a low of Rs 508 and it has seen a high of Rs 601 on Thursday, 15th February.
Potato gained almost 18 percent compared to its 15 days low however traders preferred to book profit on Thursday and hence it closed at Rs 586 per quintal.

Pepper contract for February has declined by Rs 15 and closed at Rs 12350 per quintal. All other contracts except August were declined in the range of Rs 44 to Rs 102 per quintal while August contract has been closed at Rs 13735, up by Rs 119 per quintal.