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An official advisory committee headed by Dr C. Rangarajan, Chairman, Prime Minister's Economic Advisory Council, has interalia recommended removal of levy obligation on sugar mills, according to a latest update from the Ministry of Consumer Affairs, Food & Public Distribution. The Committee has further recommended that the states, which want to provide sugar under PDS, may henceforth procure it from the market directly according to their requirement and may also fix the issue price. The recommendations of the Committee are under consideration of the Government. Some cane farmers have supported the proposal. The views of State Governments on this matter have been invited, the update concludes.

NCDEX Tips Trial

Selling is likely to continue in mustard seed in the near term on the heels of weak export demand of mustard meal during the October month along with strong mustard seed arrivals in major mandies. The NCDEX mustard seed futures plummeted by more than Rs 30 per quintal in the last trading.
As per latest data compiled by Solvent Extractors' Association of India, the total exports of oilmeals for the month of October 2012 were reported at 39,058 tonnes, down 56.50% from the last year in the same period.
Moreover, strong mustard seed arrivals in physical mandies also added some selling pressure in futures market. The total arrivals of mustard seed increased by 7000 bags to 80000 bags in major mandies in the last trading, while the spot prices of mustard seed were quoting at around Rs 4455-4460 per quintal at Jaipur mandi, Rs 4200 per quintal at Kota, Rs 4425 per quintal at Hapur and Rs 4350 per quintal at Bikaner mandi. The spot prices of mustard seed declined by almost Rs 30-40 per quintal in all major mandies.
Consequently, the future prices of Mustard seed NCDEX December Benchmark contract declined by Rs 32 per quintal to close at Rs 4235 per quintal in the last trading. The contract added almost 1000 positions in open interest indicating fresh short position by speculators at higher levels. Technically, resistances are likely at around Rs 4255-4260 per quintal while supports are likely at Rs 4200-4205 per quintal in the short term.

NCDEX - Chilli arrivals steady in Guntur mandi

Chilli 334 prices were quoting at Rs 5,200-5,500 per quintal in the Guntur spot market. The total arrivals stood steady at 40,000 bags (5,000 bags of  Khammam teja).

Mandi	Variety	Prices (Rs per quintal)	changes from previous day
Guntur (Andhra Pradesh)	334	5200-5500	Steady
	Teza New	7500-7800	Steady
	Khammam Teja	7800	Steady
	No- 341	6200-6500	Steady
	No-5	6000-6200	Steady

The NCDEX Chilli December contract moved in the range of  Rs 5,128-5,202 and is currently trading at Rs 5,146 per quintal, down by Rs 86 or 1.64% per quintal.

NCDEX Chill Updates

Chilli futures declined on profit taking of the last five sessions gains. The weak export demand and strong crop size is limiting the gains. The NCDEX Chilli November contract ended the day at Rs 4972, down Rs 72 or 1.43% from last close.Chilli 334 prices were quoted at Rs 5,300-5,500 per quintal in the Guntur spot market. The total arrivals stood steady at 25,000 bags (5,000 bags of Khammamteja).

Lower export demand has been dragging chilli prices down. The prices are expected to remain low in the coming months as harvesting of the new crop begins in December.Expectations of better output in Guntur, one of the major chilli-growing areas in the country, have also led to a decline in prices. Since August, arrivals from Madhya Pradesh have been good and the output from the state is expected to be 20 per cent higher this year. On the other hand, carry-forward stocks are at least 15 to 20 lakh bags higher than usual.

Chilli futures November contract tumbled Rs 1800 or 27% from the August first week high Rs 6600 to the low of Rs 4800 level in October. The counter witnessed relief rally of Rs 260 towards Rs 5066 level, however, dipped thereafter with counter hitting back low of Rs 4944 level. The NCDEX Chilli November contract ended the day at Rs 4972, down Rs 72 or 1.43% from last close. The open interest declined 540 long position, indicating profit taking.

Ncdex Updates

As per the latest release from Vietnam Food Association's (VFA's), Vietnam's rice exports from the beginning of the year to October 16 have reached over 6.1 million tonnes, closer to the new export target of a record 7.5 million tonnes, up about 5% or 400,000 tonnes from last year.

After a slow start this year, Vietnam's rice exports have been steady helped by increased exports to China, and also to Indonesia and the Philippines, in part due to its competitiveness compared to more expensive Thai rice. However, increasing exports and lower supplies are now pushing average prices of Viet rice higher.

NCDEX Pepper NOV Updates

Pepper NOV  ended up for the third day on strong spot demand against the weak arrival. The NCDEXPepper November ended the day at Rs 43500, up Rs 225 or 0.52% from the last close.

Pepper arrivals were steady at 200 quintals and off takes increased to 300 quintals from 250 quintals. Black Pepper for ready delivery in Kochi, closed Friday's trading session on positive note with MG-1 at Rs 41,900, up by Rs 100 and Un-Garbled pepper at Rs 40,400, up by Rs 100 per 100 kg.

India's total production of pepper during the year 2012 was estimated at 43,000 tonnes against 48,000 tonnes in 2011. India's crop dipped due to old vines, static acreage, low replanting and high labor cost. Besides, unfavorable weather conditions in 2011-12 affected the production. There are reports the next year crop will be slightly better around 50,000 tonnes as crop condition in Idukki in Kerala and Karnataka are likely to be better. The crop is expected to come after mid December only.

Pepper gained 3% in the last three sessions to Rs 43600 level on strong domestic demand. The counter ended the day at Rs 43500, up Rs 225 or 0.52% from last close and the open interest added 4.23% to 5,137 tonnes, indicating fresh buying.

NCDEX Chana News

Chana futures gained on fresh buying lead by festive demand against the restricted arrivals. The NCDEX Chana November contract ended the day at Rs 4820, up Rs 94 or 2% from the last day close.

According to the first advance estimates, Kharif pulses output is estimated lower by 14.6% at 5.26 million tonnes compared with 6.16 mn tn last year. However, higher sowing hopes due to late revival of monsoon rains in producing regions restricted the rise.
The spot prices of Akola mix were reported at Rs 4850 per quintal and Chapa quality were at Rs 4950 per quintal in the early trades, down Rs 50 from the previous day. The total daily arrivals were hovering at the levels of around 30,000 bags, against 35000 bags in last day.

Chana futures slipped in the previous two sessions on profit taking of the earlier gains. The counter bounced back from the session low at Rs 4682 and ended the day at Rs 4820, up Rs 94 or 2% from the last day close. The open interest added 20% to 96,720 tonnes, indicating short selling.