Agri Picks Report December 26, 2023: Geojit

commodities

Geojit's report on Agri Picks

The government extended the policy to allow the import of crude soyoil, crude palm oil and crude sunflower seed oil at lower duty by another year till Mar 31, 2025, the Ministry of Finance said in an official notification. Earlier, the policy to allow import of these edible oils at lower duty was till Mar 31, 2024. The decision comes at a time when the government is trying to keep domestic prices of edible oils in check. India is the top importer of vegetable oils, and meets 60% of the domestic demand through imports. Currently, crude palm oil, crude soyoil and crude sunflower oil attract import duty of 5.50% each. The Cotton Association of India has estimated cotton output in 2023-24 (Oct-Sep) at 29.4 mln bales (1 bale = 170 kg), unchanged from last month's projections, according to the November estimates released . The estimated cotton production in the ongoing year is 8% down from 31.9 mln bales produced last year, and the lowest in 15 years, due to a drop in acreage and El Nino-induced dry spells in Aug-Sep, according to the association. The association updates its estimates almost every month, based on the input received from the members of 11 cotton growing state associations and other trade sources. Production of cotton in the north zone, which comprises Punjab, Haryana, and Rajasthan, is estimated at 4.2 mln bales, down 100,000 bales from last year. The estimate for the central zone, which comprises Gujarat, Maharashtra, and Madhya Pradesh, is at 17.9 mln bales from 19.5 mln bales last year. The estimate for the south zone is also seen at 6.7 mln bales from 7.5 mln bales last year. Other states account for the rest of the output. Since October, cotton stocks available are at 9.2 mln bales as India imported 300,000 bales and domestic arrivals added up to 6.0 mln bales. The opening stock for the season starting October was estimated at 2.9 mln bales, it said. The total supply of cotton for the 2023-24 season is estimated at 34.5 mln bales, down from 35.5 mln bales a year ago. The association has estimated imports in 2023-24 at 2.2 mln bales, higher than 1.25 mln bales in 2022-23. The estimated cotton supply for 2023-24 consists of the opening stock of 2.9 mln bales at the beginning of the season, cotton output for the season estimated at 29.4 mln bales, and imports for the season estimated at 2.2 mln bales. The association has estimated domestic consumption, surplus available, and exports at 31.1 mln bales, 3.4 mln bales, and 1.4 mln bales, respectively, the same as previous month's estimates.

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26122023 - coom