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Despite several problems on the field front and shortcomings in supply chain and storage, agriculture commodities sparkled on futures exchanges.
GROWTH
They registered a growth of 53 per cent in the first quarter of the current fiscal with cumulative value rising to Rs 3,84,658 crore against Rs 2,51,476 crore in the corresponding quarter last year.
Performance of agri-commodities has been phenomenal in the last fortnight of the quarter.
The growth was 102 per cent in terms of value.
The accumulated value of these commodities, in the fortnight ended June 31, was put at Rs 75,627 crore against Rs 37,490 crore in the comparable fortnight last year.
Top five commodities
“The top five agri commodities traded in the futures market during the April- June 2011 were soya oil, guar seed, chana, rape/mustard seed and soyabean/seed. Surge in prices were triggered by independent fundamentals of each commodity. Across the globe demand for edible oil has been increasing. Festive season in India and Ramadan in Gulf countries starting this month kept importers active,” Ms Vimala Reddy, Research Analyst at Karvy Comtrade Limited, told Business Line.
Decline in soyabean
Decline in soyabean production in China by 7 per cent led to direct imports of palm oil from Malaysia.
Chinese directly imported soya oil during this period to meet their bio-diesel requirements.
Soya oil futures in India took cues from rising demand for edible oil across the globe.
“Soyabean crop prospects were at crossroads due to concerns over US weather conditions and shifting acreage to corn from soyabean.
Brazil and Argentina
Ongoing harvest in Brazil and Argentina during April also kept the investors in the industry interested,” she said.
Overall, commodities markets clocked a cumulative value of trade of Rs 38,29,230 crore in the quarter against Rs 24,55,987 crore, showing a growth of 56 per cent in the same quarter last year.
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