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Weak monsoon forecast puts agriculture ministry on guard

Posted by Flora Sawita Labels: , , , ,

The signs emanating from global weather forecasters’ predictions on 2012 southwest monsoon has put the agriculture ministry on its guard.

Following the predictions of below-normal rainfall in the country — after two successive years of normal monsoon — the ministry is planning to instruct all states to prepare contingency plans to deal with uneven monsoon. The plans could include district-wise action in case of low rains, making available short-duration and water-stress-resistant seed varieties and fertilisers, continuous monitoring of water levels in the 80-odd reservoirs across the country, etc.

“The idea is not to spread a scare, but, instead, to be prepared, so as not to get caught in a 2009-like scenario, when the actual monsoon was far less, despite expectations of normal rains — pushing the country into one of the worst droughts in over three decades,” a senior agriculture ministry official said.
He said the preparations would be discussed during a two-day conference of senior agricultural scientists, officials from all states and Union Territories, beginning Monday, to finalise the strategy for this year’s kharif sowing.

The weather concerns arose after major global weather forecasters, such as Japan Agency for Marine-Earth Science and Technology and the International Research Institute for Climate and Society at the Columbia University, predicted there was little chance of India getting above-normal monsoon this year. This was lent further credence by the UK’s meteorological office, in its long-range global weather forecast, in which it said the chance of India getting above-normal rainfall during the entire four-month period of July-September was only 40 per cent.

Caution by the agriculture ministry also speaks volumes on the credibility of the southwest monsoon forecast of the India Meteorological Department (IMD), which has repeatedly erred in its predictions.



The Met office usually shrugs off such long-range global predictions as being too far-fetched and comes out with its first official forecast in April, days before monsoon actually hits Andaman and Nicobar islands.

Southwest monsoon enters the mainland from Kerala coast in May, thereafter leaving very little time for making any significant agricultural intervention. “In the last two years since 2009, India has received good southwest monsoon, so there is a chance of some uneven or erratic rains this year,” the official added.

In 2010, India received rains that were equivalent to 98 per cent of Long Period Average (LPA), while in 2011 it received 101 per cent. Rainfall between 96 and 100 per cent of LPA is considered normal rainfall in the country. The Indian agriculture is heavily dependent on southwest monsoon, as the four-month rainy season provides around 70 per cent of the total moisture the country receives in a year.

The rains are vital also because just around 40 per cent of the total arable land in the country is under irrigation.

Following a drought, the country’s agricultural growth dropped to 0.1 per cent in 2008-09, from 5.8 per cent the previous year. Officials said the two-day meet would give a special focus to technical know-how, timely advisories and supply of inputs to farmers in the event of low rainfall.

Business Standard

Global soy output set for record drop: Oil World

Posted by Flora Sawita Labels: , , , ,

Global soybean output this year is set for a record drop of 7.2 percent, or 19 million tonnes, mainly due to bad weather conditions in key growing areas in South America, Germany-based analyst Oil World forecast on Tuesday.

"World production of soybeans is likely to plunge by (a)staggering 19 million tonnes to only 246.5 million tonnes in 2011/12, according to our current estimates - the biggest year-on-year reduction ever registered," Oil World said in a monthly report.

It said prices of soybeans were firm in February, lifting prices of other oil seeds and oil meals.

Soyoil on the European vegetable oil market [OILS/E} rose 50 euros since February 1 to 960 euros a tonne on concerns that a drought in South America has hit the crop.

Oil World said that prices were further supported by strong demand from China where imports are estimated at 28.5 million tonnes of soyabeans between April and September this year, an increase of 1.8 million tonnes from the same period a year ago.

Analysts believe growing demand from China, which accounts for more than half of the soyabeans traded in the world, threatens to hit global supplies and stir concern over food inflation.

"The crop failure in South America will raise the world market's dependence on US supplies," Oil World said.

"We already expect some shift to occur from now on resulting in a year-on-year increase of US soyabean exports by 1.6 million tonnes to 10.6 million tonnes in March/August, virtually offsetting the total decline in South American exports in that period primarily from Paraguay and Brazil."


Ukraine denies curbing wheat exports

Posted by Flora Sawita Labels: , , ,

Ukraine's government said on Wednesday it had not urged grain traders to limit wheat exports, denying local media reports it had done so, and it forecast that there would be no shortages of grain on the domestic market.

"There are no recommendations to limit wheat exports," Agriculture Minister Mykola Prysyazhnyuk told reporters.

"Traders are telling us they will not be able to export more than 300,000-500,000 tonnes of wheat a month and our balance (of exports and consumption) allows for that." Ukrainian media reported last week that traders and the government had agreed to limit exports of wheat due to the threat of future shortages following weather damage to winter crop plantings.

Prysyazhnyuk said drought during the winter sowing in 2011 and severe frosts in January-February had damaged about 3.0 million hectares of Ukrainian winter grains and 500,000 hectares of winter rapeseed.

"We expect that all of these areas would be reseeded this spring.

We recommend farmers to sow corn, spring wheat, barley, soybean and these crops allow us to keep the harvest at a high level," he said.

He said Ukraine would harvest 42 million to 50 million tonnes of grain this year, including 15 million-16 million tonnes of wheat, adding that this would be enough to meet domestic demand.

Ukraine harvested a record of 56.7 million tonnes of grain in 2011, including 22.3 million tonnes of wheat.

But this year's winter crops have been hit by drought and extreme cold.

He said Ukraine consumed no more than 26.5 million tonnes of grain per season.


ISO raises global sugar surplus forecast

Posted by Flora Sawita Labels: , ,

The International Sugar Organisation on Monday increased its forecast for a projected global sugar surplus in 2011/12 to 5.17 million tonnes, up from a forecast of 4.46 million issued in its previous quarterly update.

World production in 2011/12 was seen at a record 173.00 million tonnes, up 4.9 percent from the previous season, with consumption climbing 2.3 percent to 167.83 million, the ISO said in a quarterly market outlook.

The upward revision in the surplus was driven by expectations of significantly higher output in several key producers, such as Russia, the EU, India, Pakistan and Ukraine, despite a cut in top producer Brazil's projected output.

"Expected losses in export availability in Brazil are likely to be counter-balanced by higher deliveries from a number of key players including Australia, the EU, India and Thailand," the London-based ISO said.

The ISO expects world exports to grow marginally to 53.275 million tonnes, up 51,000 tonnes from the previous year.

World import demand is expected to decrease on the back of higher output in importing countries, the ISO said.

Imports are projected at 49.151 million tonnes, raw value, as against 52.765 million tonnes estimated for 2010/11 and the record level of imports at 55.403 million tonnes in 2009/10.
The upward revisions for output in 2011/12 mean that the ISO anticipates that stock rebuilding will accelerate in the second half of the season.

The current season started with a very low level of stocks, it added.

"If the currently anticipated differential between export availability and import demand (about 4.1 million tonnes) goes to stocks at the end of the season, the stocks/consumption ratio will rise to about 37 percent," the ISO said.

"This is likely to put bearish pressure on world prices."


India's wheat to cross forecast

Posted by Flora Sawita Labels: , ,

India's wheat output in 2011/12 will cross the current official forecast of a record 88.31 million tonnes due to favourable weather conditions, Farm Minister Sharad Pawar said on Friday.

The bumper harvest, on top of ample stockpiles, will benefit local farmers and traders, who have struggled to make overseas sales as international prices have been lower.

India has allowed exports of two million tonnes of wheat, easing a ban on overseas sales imposed in 2007, but shipments have only been around 500,000 tonnes.

India, the world's second-biggest wheat producer, harvested a record 86.87 million tonnes of the grain in 2011.


Analyst cuts Ukraine's wheat exports forecast

Posted by Flora Sawita Labels: , ,


Analyst UkrAgro Consult cut its forecast for Ukraine's 2011/12 wheat exports to 7.6 million tonnes from the previous estimate of 9.7 million tonnes, it said on Friday.


The consultancy said in a report that Ukraine, which harvested 20.6 million tonnes of wheat in clean weight this year, was likely to increase its year ending stocks to about 5.0 million tonnes and not 2.9 million tonnes as it had previously expected.


UkrAgroConsult said Ukraine had exported 2.15 million tonnes of wheat in the first five months of the season which goes from July to June.


The Farm Ministry said this week the former Soviet republic had harvested 22.4 million tonnes of wheat in clean weight in 2011 against 16.8 million tonnes in 2010.




Analyst cuts Ukraine's wheat exports forecast

Posted by Flora Sawita Labels: , ,


Analyst UkrAgro Consult cut its forecast for Ukraine's 2011/12 wheat exports to 7.6 million tonnes from the previous estimate of 9.7 million tonnes, it said on Friday.


The consultancy said in a report that Ukraine, which harvested 20.6 million tonnes of wheat in clean weight this year, was likely to increase its year ending stocks to about 5.0 million tonnes and not 2.9 million tonnes as it had previously expected.


UkrAgroConsult said Ukraine had exported 2.15 million tonnes of wheat in the first five months of the season which goes from July to June.


The Farm Ministry said this week the former Soviet republic had harvested 22.4 million tonnes of wheat in clean weight in 2011 against 16.8 million tonnes in 2010.




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