Agri Picks Report April 05, 2024: Geojit

commodities

Geojit's report on Daily Agri Picks

The Multi Commodity Exchange Clearing Corp Ltd has decided to accredit the Bhavnaben warehouse in Rajkot for storage and effecting the delivery of cotton bales with effect from Thursday. The clearing arm of MCX said that storing charges will be 2.85 rupees per bale of cotton, according to an official release. It further said insurance charges will be included in the storing charges. The National Commodity and Derivatives Exchange Ltd has raised the open position limit of 29 cotton contracts effective from Jun 1. The commodity exchange has raised the overall cotton contract open position limit of members to 500,000 bales from 200,000 bales and for the near-month contract to 125,000 bales from 50,000 bales, it said in a circular. The overall position limit for clients has been raised to 50,000 bales from 20,000 bales and 12,500 bales from 5,000 bales for the near-month contract, it said. "Overall (all contracts) member-level limit shall be numerical limits or 15% of market-wide open position, whichever is higher. Near-month member level position limit shall be equivalent to the one-fourth of the overall member level position limit," according to the circular. Modified near-month and overall position limits will be applicable for cotton futures contracts expiring in July 2024 onwards, it said. The Mustard Model Farm project, a joint effort by the Solvent Extractors’ Association of India and Solidaridad to increase India's oilseed availability, aims to increase the country's mustard production to 20 mln tn by 2029-30, the association said today. The project, launched in 2020-21, has facilitated a record acreage of 10 mln ha and a likely mustard output of 12 mln tn in 2023-24, the association said. "India is heading for a record rapeseed-mustard crop of 120.90 lakh tn (12.1 mln tn) as remunerative prices in the past year encouraged record plantings of the oilseed," SEA said. Conducive weather and efforts made by the Mustard Model Farm project boosted production over the years, it said. Under the project, around 3,500 model farms have been set up across the country, covering more than 125,000 farmers in five states.India's mustard production has steadily increased from 8.6 mln tn in 2020-21 to 11.3 mln tn in 2022-23, while the acreage has expanded from 6.7 mln ha in 2020- 21 to 10.0 mln ha in 2023-24. The project has started showing positive results as reflected in SEA's recent crop survey for 2023 -24, it said. According to the survey, mustard production in 2023-24 is estimated to be the highest in Rajasthan at 4.6 mln tn, followed by Uttar Pradesh at 2.0 mln tn and Madhya Pradesh at 1.8 mln tn. "In spite of some damage during February, the average productivity for the year 2023-24 has been estimated at 1,201 kg per ha," SEA said. Innovative farming practices, advanced technology adoption, and comprehensive farmer support programmes have facilitated higher production, the association said.

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