Tag: Brokerage Recos – Commodities

India received below-normal rainfall for the third consecutive week, which is likely to have a significant impact on the agricultural sector and water supply in the country. The deficit rainfall is expected to affect the production of crops such as rice, wheat, and soybean, and could lead to water shortages in some regions. The government has taken some measures to mitigate the impact of the rainfall deficit, but more needs to be done to ensure that the country is prepared for the challenges posed by the deficit rainfall.

The area under kharif crops in India was at 108.9 million hectares as of Friday, up slightly from last year. However, sowing of pulses is lagging due to erratic rainfall. Acreage under sugarcane is up, but there are concerns about production next season. Sowing of sunflower is lagging due to deficient rainfall in major growing states. Rainfall in September is expected to be normal, with above-normal precipitation in some areas.

The UN food agency's food price index fell in August to a new two-year low, as most food commodities declined. However, rice prices rose to a 15-year high following Indian export restrictions. The National Commodity and Derivatives Exchange is in talks with the Maharashtra government to launch subsidized options contracts in turmeric for farmers.