Tag: Palm Oil

Tripura to bring 7000 hectares under palm oil cultivation by 2026-27

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Tripura government has set a target of bringing 7000 hectares of land under palm oil cultivation by 2026-27 financial year, a senior minister has said.

At present, palm oil plants are cultivated in 56.35 hectares of land in the northeastern state.

“To expand palm oil cultivation in the state, digital mapping was done in 2020 by the Indian Council of Agricultural Research (ICAR) and the Indian Institute of Oil Palm Research. In the process, 1,46,364 hectares of land were identified in the state.

“Of that, 7000 hectares of land would be brought under palm oil cultivation by 2026-27,” Agriculture Minister Ratan Lal Nath said.

To tap the potential, the Agriculture department has signed MoUs with Godrej Agrovet Ltd and Patanjali Food Private Ltd under the National Mission on Edible Oil, he said.

Nath said Godrej Agrovet Ltd has set up a nursery at Nalkata in Unakoti district.

“Godrej Agrovet has also brought palm plants from Andhra Pradesh and planted them on 52.01 hectares of land. The Patanjali Food Pvt Ltd has also planted palm plants in 56.35 hectares,” he said.

Claiming that the state has good potential in palm oil cultivation, the minister said the state has already sent 18 officers to Andhra Pradesh to impart training on palm oil cultivation.

“The department has already imparted training to 2123 farmers. Of them, 1076 have expressed interest in raising palm oil plants for better return,” he said.

The oil seed is found from a palm tree four years after plantation and farmers get it for 30 years.

“Since palm oil cultivation has potential in the hilly state, the Agriculture department will leave no stone unturned to explore the possibility. If the plan is successful, the farmers will be benefited in future,” he said.

The major oil palm growing states include Andhra Pradesh, Telangana, Tamil Nadu, Odisha, Karnataka, Goa, Assam, Tripura, Nagaland, Mizoram, and Arunachal Pradesh.

Countries like Indonesia, Malaysia, Nigeria, Cambodia and Thailand produce 90% of palm oil in the world, Nath added.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

‘Oil Palm indeed, can be sustainable/The goal for us is attainable’ — Nadir Godrej pens a visionary poem

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nadir Godrej, Chairman of Godrej Agrovet, has written an ode to sustainable palm. As the poem unfolds, Godrej’s words resonate with the spirit of innovation, toil, and a sunny vision of India’s futuristic agricultural landscape. A compelling narrative of transformation, the verses describe how ‘Oil Palm’ transcends its tropical roots to become a symbol of sustainable prosperity in a changing world.

Read Nadir Godrej’s Sustainable Palm 2023, a rhythmic exploration of a contemporary environment-based theme.

The Oil Palm is very tropical

And no one thought it topical

To grow it in higher latitudes.

But we have changed attitudes.

Oil Palm requires constant rain.

In India this was cause for pain.

Some months are cold, some months are dry,

So many thought this would not fly

But the secret is good irrigation.

The yields now meet expectation.

The seasonal swing is very wide.

And this for us is the downside.

But then the higher insolation

Is a partial consolation.

More male flowers are also found.

Fruit bunch development is very sound.

The summer yields are very high

And so Oil Palm is worth a try.

In fact compared to global yields

We reach one third in Soya fields.

But in Oil Palm, I must mention

That with the help of good extension

On small holdings our yields are fair

And with other lands they can compare.

And so Oil Palm can entice

Land from Mango, Coconut and Rice,

Which the farmers choose to spurn

For Oil Palm’s good, sustained return.

In India we switch from crop to crop.

So forest area doesn’t drop.

We do not choose to slash and burn.

And if we cut we plant in turn.

With Oil Palm too we’ll ensure

Good practices will endure.

It’s the policy in our nation

To avoid peat lands and deforestation.

We’ll practice water conservation

By using drip irrigation.

And controlling GHG emission

Will be our abiding mission.

As the Oil Pam steadily grows

In the early years everyone knows

Much carbon is captured in the wood.

In later years it’s understood

The carbon capture would be less.

But some there would be, I’d like to stress.

We will always closely work

With our farmers and never shirk

In new knowledge acquisition.

Helping our farmers is our mission.

Our farmer practices we can assess

Thanks to our useful FMS.

The Farmer Management System’s nice

It helps provide good advice.

Yields increase, the costs decline

The farmer practices are fine.

Both soil and leaf are analysed.

Good insights are realised.

Our farmers are then made aware.

As all these insights we carefully share.

Another benefit of course

Is traceability to source.

On this much effort has been spent.

We have achieved 100 percent.

Of course to implement this scheme

We have our extension team.

150 is now their strength

And they will go to any length

To help the farmers in every way.

The yields improve day by day.

Good advice is always sought.

Sustainable practices are taught.

We always like to stay in touch

After all there is so much

That we can share through our app.

We can quickly fill a gap.

The users are clearly identified.

Tailor made solutions are supplied.

High yielding seedlings will be supplied

Many experiments will be tried.

At GAVL, I should mention

Sustainability covers every dimension.

And indeed it is our goal

To have robust internal control.

On geomapping  we are bent.

We have achieved 90%.

Oil Palm indeed, can be sustainable

The goal for us is attainable.

After studying RSPO

As well as ISPO, MSPO

For India IPOS was conceived

The Standard has been well received.

It is the standard that we use.

Last year’s assessment made good news.

The many criteria that they fix

Amount to as many as 76!

Our rating we were told

Was 94% level gold!

But we of course will aspire

To go higher and higher!

Now Indian output’s bound to grow

With the new policies we can show

Progress of a substantial kind

Till then of course you will find

Immense imports from SE Asia

From Indonesia and Malaysia.

But we should have no fears

In about 20 years

As our farmers get efficient

India will be self sufficient.

Thanks to innovation and constant toil

We won’t need to import oil.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

From rice to palm oil, Asian crops output forecast lower as El Nino strengthens

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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An unusually dry August has taken a toll on cereal and oilseed crops in Asia as El Nino intensified, and forecasts for lower rainfall in September are further threatening to disrupt supplies.

While wheat output forecasts are being revised lower due to dry weather in Australia, the world’s second largest exporter, record-low monsoon rains are expected to reduce the volume of crops, including rice, in India, the world’s biggest shipper of the grain, meteorologists and analysts said.

Insufficient rains in Southeast Asia, meanwhile, could dent supplies of palm oil, the world’s most widely used vegetable oil, while extreme weather in top corn and soybean importer China is putting food output at risk.

“We are in full-blown El Nino weather in several parts of the world and it is going to intensify towards the end of the year,” said Chris Hyde, a meteorologist at US-based Maxar Technologies, a climate data analytics platform.

“The weather pattern in Asia will correlate with dry El Nino conditions.”

El Nino is a warming of Pacific waters which typically results in drier conditions over Asia and excessive rains in parts of North and South America.

Lack of rains in India, Australia

India’s monsoon rains, crucial for summer crops such as rice, sugarcane, soybeans and corn, are poised to be the weakest in eight years.

“The impact of El Nino is much greater than we had anticipated,” said a senior India Meteorological Department official. “This month is going to end with a deficit of over 30%, marking it as the driest August on record. El Nino will also affect September’s rainfall.”

India, which accounts for 40% of global rice exports, has curbed shipments, lifting prices to 15-year highs.

Australia’s wheat output estimates are being revised lower by analysts for the first time in four years as key growing areas have had insufficient rain in August.

“Wheat production is going to be three million (metric) tons lower than our initial estimate of 33 million tons,” said Ole Houe, director of advisory services at agricultural brokerage IKON Commodities. “If the dryness continue in September, we are looking at an even lower crop.”

Australia has had three straight years of bumper wheat output, boosting supplies for importers such as China, Indonesia and Japan.

Tropical Southeast Asia hit by dryness

Rice, palm oil, sugarcane and coffee crops have received lower-than-usual rainfall in Southeast Asia, with Indonesia and Thailand the worst hit.

“Eastern parts of Indonesia and much of Thailand has had very little rain in the last 30 to 40 days,” Maxar’s Hyde said.

“In these areas, precipitation has been 50% to 70% of average. Most of September is going to be largely below normal rains in Thailand and Indonesia.”

In the United States, corn and soybean crops have suffered in recent weeks due to dryness, although the weather is not associated with El Nino, said Drew Lerner, president of World Weather Inc.

From November to February, however, US farms will see a bigger impact from El Nino with above-average precipitation in southern states, benefiting winter wheat, Lerner said.

South American weather is expected to be crop-friendly for soybeans and corn which will be harvested early 2024.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Patanjali Foods looking at sourcing 70% palm oil from own plantation in 6-7 years, says CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Patanjali Foods’ CEO, Sanjeev Asthana, said on Wednesday that the company has an extensive 6.34 lakh hectares of land dedicated to palm oil plantation. Anticipating significant self-sufficiency, Asthana expressed the company’s projection that 70 percent of palm oil sourcing would come from its own plantations within the next six to seven years.

Asthana highlighted the company’s strategic collaborations with the governments of Telangana and Assam, detailing their efforts. “We have already established 11 nurseries, with an additional four set to be established in the upcoming two quarters. An oil palm mill is under development in Arunachal Pradesh, and land has been acquired in Assam for another mill. A flurry of activity spans across southern India — encompassing Telangana, Andhra Pradesh, and Karnataka — as well as the northeastern states. Our optimism stems from the significant transformation and integration of our business on the horizon,” he told CNBC-TV18.

Currently, approximately 10 percent of the company’s palm oil requirement is met through its own plantations. Asthana indicated that within the next six to seven years, the company envisions this figure to escalate to 70 percent, driven by their robust internal plantation efforts. “In terms of the palm oil segment, we foresee a substantial uptick of over 200 basis points as the full synergies take effect and our oil palm plantation business expands, reaching close to a million tonnes in volume,” he projected.

Addressing the broader FMCG landscape, Asthana noted that Patanjali Foods’ overall business within this sector has demonstrated substantial growth. “Our performance for this quarter amounted to about Rs 361 crore. Margin progression has been consistently positive across diverse categories, encompassing an impressive span from around 19 percent in the food business to approximately 10.1 percent in the biscuits category. Our overarching direction for the entire FMCG segment, however, remains firmly set on maintaining an 18 percent plus margin,” he affirmed.

The company’s quarterly net profit experienced a notable decline of 64 percent, dropping to Rs 87.75 crore from the previous year’s Rs 241.25 crore. Asthana attributed this margin contraction to market-to-market losses incurred through commodity hedging.

“There are two reasons for the contraction in the margin. The global prices on the futures exchange where we hedge our risk, both at Chicago as well as the Bursa Malaysia Derivatives Berhad (BMD), those markets went up nearly 10 percent. But the domestic markets did not react at all; they marginally went up. So, on one side on the hedges is that we had to give up some money into the book losses, as well as on the accounting standard, a lot of mark to market (MTM) we had to take in the account at quarter end,” he said.

For the ongoing and upcoming quarters, Asthana is expecting this trend to reverse. He said the company is expecting its EBITDA margin in the edible business to be between 2 and 4 percent this fiscal.

Also Read: Allcargo Logistics Share Price: International LCL volumes decline in July, but improve from June

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

FMCG stocks down as Indonesia tightens palm oil exports from January 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In order to ensure there was enough domestic supply, Indonesia would tighten export regulations for palm oil starting January 1 by allowing fewer exports outside for each tonne sold domestically, a government official said on Friday, according to news agency Reuters.

“To secure domestic supply, especially for the first quarter of 2023,” said Septian Hario Setio, a senior official at coordinating ministry of maritime and investment affairs, in explaining the reason behind the policy change.

In contrast to the present ratio of eight times, which was confirmed by an industry official, exporters will now be permitted to ship six times their domestic sales volume.

Also read: India increases palm oil import tariffs by 6-11%

Shares of Indian companies in the Fast Moving Consumer Goods sector are trading in red following the news. Hindustan Unilever shares are at Rs 2,565, down 0.08 percent, Britannia shares are down 0.8 percent, Godrej Consumers shares are at Rs 876 down 1.02 percent and Nestle India is down 0.5 percent.

Meanwhile Adani Wilmar shares are the only ones in the positive, up 1.87 percent, at Rs 616 on the BSE.

A brief ban on exports of the edible oil from Indonesia shook markets and exacerbated existing global supply concerns, but it also led to ballooning domestic inventory.

Also read: Palm oil prices slump to 20-month low — what’s hurting the commodity and aiding FMCG firms

Indonesia currently imposes a so-called domestic market obligation (DMO) requiring businesses to sell a portion of output locally in return for export permits.

Palm oil is used in everything from food products to detergents to cosmetics, hence its prices affect the prices of many goods. Earlier the Indonesian government had lifted the ban from Palm Oil in May, leading to a drop in palm oil rates and a rally in FMCG stocks.

“With Indonesia lifting up the ban and the Indian government pushing enterprises to reduce the maximum retail price of edible oils by Rs 15, palm prices are going to stay consolidated,” finance advisor, Manoj Kumar Jain told CNBC-TV18.com in July.

Indonesia is planning to increase the mandatory palm oil component to 35 percent starting February 1.

Also read: Palm oil prices expected to drop by more than 20 percent — here is how it will impact FMCG companies

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India increases palm oil import tariffs by 6-11%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After a long buzz, the government decided to increase palm oil import tariffs by 6-11 percent. The decision comes as a part of the government’s effort to help farmers who are reeling from lower oilseed prices. 

After the import tariff hike news, fast-moving consumer (FMCG) stocks such as Hindustan Unilever, Britannia, Nestle India, and Godrej Consumers remained more or less flat.

The government, in its released gazette notification, said that the crude palm oil (CPO) import tariff is now raised to $952 from $858 per tonne, whereas the RBD (refined, bleached and deodorised) palm oil import tariff stands at $962 from $905 per tonne earlier. New Palm Oil import (others) tariff was raised to $957 from $882 per tonne.

The new import tariff for crude palmolein stands at $968 while at $971 and $970 for RBD Palmolein and Palmolein (others), respectively.

The list also includes crude soya bean oil, whose new import tariff now stands at $1,345 per tonne, whereas the brass scrap (all grades) tariff is increased to $4.518 per tonne.

Earlier this year, India abolished the basic import tax on crude palm oil to keep a lid on prices. The government revises base import prices of edible oils, gold and silver every fortnight.

The world’s biggest vegetable oil importer, India, meets more than 70 percent of its demand through imports from Russia, Ukraine, Malaysia, Indonesia and others. Palm oil constitutes nearly two-thirds of its vegetable oil imports.

In the past, Prime Minister Narendra Modi has many times expressed his concerns over the rising vegetable oil import bill and urged farmers to boost oilseeds output.

Also Read: India examining proposal to raise palm oil import tax

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Samvat to Samvat: Here’s how gold, crude, wheat, rice and other commodities have fared

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The last trading day before Diwali, today in the case of 2022, marks the end of a year on the Vikram Samvat calendar for the trading community. As we enter 2079 on this calendar, here is a look at how the commodity market has fared in the past year.

Energy Prices

Headlines have been created here because of the still ongoing Russia-Ukraine war. Crude has seen all-time highs being breached as heating oil has become a concern in Europe.

The crude oil prices have come off their highs though and now closing with nearly 2-8 percent gains.

Precious Metals

When one looks at the international gold prices, there has been a decline of nine percent but the Indian gold prices, because of the rupee depreciation, are witnessing four percent gains.

Also Read: Vikram Samvat 2079: All you need to know about Muhurat trading

Industrial commodity prices also have had their share of news and volatility in the year. All-time highs in copper and aluminium were seen but they have dropped between 30-35 percent since.

Agricultural commodities which have had a direct impact because of the Russia-Ukraine war have done well.

Also Read: Gold prices fall to nearly three weeks low in choppy trade

Everything else is trading in the negative, whether it is coffee or sugar. Cotton, used for textile, is down by 28 percent and rubber is down 28 percent in the last one Samvat.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India examining proposal to raise palm oil import tax

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is examining whether there is a need to raise palm oil import taxes, government and trade sources said, as part of efforts by the world’s biggest vegetable oil importer to help millions of its farmers reeling from lower oilseed prices.

Earlier this year, India abolished the basic import tax on crude palm oil (CPO) to keep a lid on prices. New Delhi continues with a 5 percent tax known as the Agriculture Infrastructure and Development Cess on CPO imports.

India also levies a 12.5 percent import tax on refined, bleached and deodorized (RBD) palm oil.

“We are going through a proposal to bring back the duty on crude palm and raise the RBD duty,” said a government source who didn’t wish to be identified in line with official rules.

“We are going to keep in mind the interests of both farmers and consumers.”

The government has also received petitions from the industry to raise the import tax to help prop up falling oilseed prices, the second government source said.

“Soybean and groundnut prices have crashed in the past few months anticipating higher supplies,” said BV Mehta, executive director of the Solvent Extractors’ Association.

“In some places, the new crops are being sold even below MSPS (minimum support prices),” Mehta said referring to state-set support prices.

Prime Minister Narendra Modi’s home state of Gujarat is the top producer of peanuts, popularly called groundnuts.

The government should raise the CPO and RBD import taxes by at least 10 percent to support falling oilseed prices, and the duty differential between CPO and RBD should at least be 12-13 percent to encourage local refining, Mehta said.

India meets more than 70 percent of its vegetable oil demand through imports from Malaysia, Indonesia, Brazil, Argentina, Russia and Ukraine. Palm oil constitutes nearly two-thirds of India’s vegetable oil imports.

Addressing a group of farmers on Monday, PM Modi expressed concerns over India’s rising vegetable oil import bill and urged growers to boost oilseeds output.

Also Read: Rural inflation rises to 7.6% in September, low demands for entry-level products

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow