Ashok - published Reuters Wire stories

22
India Andhra Pradesh turmeric output seen
up 36 pct in 2012
http://in.reuters.com/article/2012/02/15/turmeric-output-idINI8E8D102220120215
Wed, Feb 15 2012
MUMBAI, Feb 15 (Reuters) - Turmeric output in the southern state of Andhra Pradesh,
India's top producer of the spice, is likely to rise 36 percent on year to 83,000 tonnes in
2012 due to an expansion in acreage, a state government official told Reuters on
Wednesday.
The production was 61,000 tonnes last year, said S. Radhakrishna Murthy, deputy
director at state's horticulture department.
(Reporting by Ashok Kumar K; Writing by Rajendra Jadhav; Editing by Rajesh
Pandathil)
Cyclone Thane kills six, weakens rapidly
http://in.reuters.com/article/2011/12/30/india-cyclone-thane-idINDEE7BT03D20111230
Fri, Dec 30 2011
By S. Murari
CHENNAI (AlertNet) - Rain and gale force winds lashed the southeast coast on Friday,
bringing down walls and power lines and killing at least six people as cyclone Thane
made landfall near Chennai.
With winds of up to 135 kph and tidal surges of up to 5 feet, Thane hit Tamil Nadu, close
to the former French colonial town of Pondicherry, forcing some people in coastal
villages to seek safety in relief shelters.
The storm quickly lost strength over land, with winds dropping to 75 kph.
"There have been six cyclone-related deaths in different villages in this area mainly due
to wall collapses or electrocution," said V. Amuthavalli, an official in Cuddalore district,
one of the worst-hit areas in Tamil Nadu.
"Our priority right now is to restore power supplies and other infrastructure problems
which have been damaged."

22
The weather office said Thane, which had moved in from the Bay of Bengal hitting the
coast between Cuddalore and Pondicherry at around dawn, would also have an impact in
the neighbouring state of Andhra Pradesh, but to a lesser degree.
Heavy rain was expected to last for 12 hours and the strong winds would weaken to about
45 kph by the end of the day, it said in its latest bulletin.
India's cyclone season generally lasts from April to December with severe storms often
causing dozens of deaths, evacuations of tens of thousands of people from low-lying
villages and widespread crop and property damage.
In 1999, a "super-cyclone" battered the coast of Orissa for 30 hours with wind speeds
reaching 300 kph. It killed 10,000 people.
Authorities have set up emergency control rooms and disaster response teams have been
deployed.
According to the U.N.'s Global Disaster Alert and Coordination System, up to 1.2 million
people live in the affected area, with almost 80,000 in low-lying coastal areas.
Aid workers in Tamil Nadu said it was too early to assess the damage and whether there
was a need for emergency aid.
"Some roads have been blocked due to trees being uprooted by the strong winds, and
electricity supplies and phone lines are also out in the worst-affected areas," said Joseph
Sahayam, emergency officer for the Churches Auxiliary for Social Action.
"Mud and thatch homes along the coast are also believed to have suffered some damage."
Thane is also expected to damage rice, groundnut and maize crops in both Tamil Nadu
and Andhra Pradesh.
Andhra Pradesh is the biggest producer of corn in India and the second-biggest producer
of rice and groundnut, while Tamil Nadu is not a key producer.
(AlertNet is a global humanitarian news service run by Thomson Reuters Foundation.
Visit www.trust.org/alertnet)
(Writing by Nita Bhalla; Additional reporting by Ashok Kumar Kesani in Hyderabad;
Editing by Robert Birsel)

22
Turmeric sowing drops more than 7 pct in
Andhra Pradesh
http://in.reuters.com/article/2011/09/09/india-turmeric-sowing-
idINL3E7K90L720110909
Sept 8, 2011. 10:56am IST
MUMBAI, Sept 8 (Reuters) - Turmeric sowing in Andhra Pradesh, India's biggest
producer of the yellow spice, fell 7.25 percent on year as delayed and irregular rains
affected sowing in the initial phase, state farm department data showed.
As on Sept 7, farmers had cultivated turmeric on 64,000 hectares against 69,000 hectares
a year ago in the same period, the data showed.
Turmeric cultivation usually starts in the last week of May and continues till August.
However, the seeded area has picked up from 54,000 hectares as on Aug 3 to 64,000
hectares so far because of good rains in the past few weeks.
The five-year average sowing area of turmeric in Andhra Pradesh is 63,000 hectares.
However, last year the state recorded a bumper crop.
"Favourable weather and rains in the cultivating regions have aided turmeric sowing in
the last one month. So far, the crop condition is good and we can see better production
this season," said Chowda Reddy, senior analyst at JRG Wealth Management.
Coastal Andhra Pradesh has so far received 6 percent higher than normal rains in the
current monsoon season, while Telangana region got 4 percent lower than normal and
Rayalaseema 17 percent higher than normal rainfall, data on weather department's
website showed.
(Reporting by Meenakshi Sharma and Ashok Kumar K)
Turmeric acreage picks up on rains in
Andhra Pradesh
idINL3E7JA18X20110810
Wed, Aug 10 2011

22
HYDERABAD Aug 10 (Reuters) - Sowing of turmeric in Andhra Pradesh, the country's
biggest producer of the yellow spice, has picked up following rains in the past weeks,
state farm department data showed.
As on Aug 3, farmers had cultivated turmeric on 54,000 hectares against 58,000 hectares
a year ago, which is nearly 7 percent less, the data showed.
Turmeric cultivation usually starts in the last week of May and continues till August.
Coastal Andhra Pradesh has so far received 8 percent lower than normal rains in the
current monsoon season, while Telangana and Rayalaseema region got 12 percent and 5
percent lower rainfall respectively, data on weather department's website showed.
(Reporting by Ashok Kumar K ;Editing by Sunil Nair)
Turmeric sowing stutters on patchy rains
in Andhra Pradesh
idINBMB01305120110708
Fri, Jul 8 2011
By Meenakshi Sharma and Ashok Kumar K
MUMBAI, July 8 (Reuters) - Turmeric sowing lagged on rain delay in India's largest
producing Andhra Pradesh state, where acreage fell 63 percent from the year ago, though
an expected pick-up of the monsoon in later this month could accelerate sowing.
As on July 6, farmers have cultivated turmeric on 7,000 hectares against 19,000 hectares
a year ago, which is 63 percent less, data from the state farm department said.
"Lower rains have affected the sowing operations in the state," said M Chandra Prakash,
joint director at state's farm department.
Turmeric cultivation requires good rains in June and July that would stack up moisture in
the soil, boosting yields. Sowing usually starts in the last week of May and continues till
August.
"Rains have been delayed by more than a fortnight in our area, pushing back sowing by
10-15 days. But we expect sowing to recover in July with the revival of monsoon as
forecast by the weather department," said Punamchand Gupta, a trader from Nizamabad,
a key market in the state.

22
"Cultivation is not completely dependent on rains as most of the farmers have irrigation
facilities. Sowing activities are expected to pick up by the end of this month," said
Sandeep Akula, a trader from Nizamabad, a key market in Andhra Pradesh.
The state farm department has decreased the target for turmeric acreage in Andhra
Pradesh to 50,000 hectares for 2011/12 kharif season, down from 69,000 hectares a year
ago.
Turmeric is a nine month long crop for which rains are crucial in the first three months of
sowing as after that farmers depends on the ground water or irrigation facilities.
Andhra Pradesh, Karnataka and Tamil Nadu in the south and the western state of
Maharashtra are major turmeric producers.
"Turmeric sowing is delayed but it is expected to recover with the revival of monsoon
rains. Traditional turmeric farmers will not switch to other crops as at 7,000 rupees per
100 kg we are getting good returns," said T Malla Reddy, a farmer from Warangal district
in Andhra Pradesh.
However, India's total turmeric acreage in 2011/12 is expected to remain lower than last
year due to a sharp fall in prices. [ID: nL3E7GP0NY] (Editing by Harish Nambiar)
Cotton, turmeric area down in India's
Andhra Pradesh
http://in.reuters.com/article/2011/07/01/india-andhra-pradesh-sowing-
idINL3E7I11WZ20110701
Fri, Jul 1 2011
HYDERABAD, July 1 (Reuters) - A continued monsoon lull over India's southern
Andhra Pradesh state has slowed down cultivation of cotton, turmeric and corn in the
state, a government official said on Tuesday.
Farmers have cultivated cotton on 476,200 hectares as on June 29 against 605,000
hectares a year ago, while corn on 71,500 hectares, down from 117,000 hectares a year
ago.
Turmeric covered 5,600 hectares, sharply down from 7,000 hectares last year this time,
while paddy was sown on 67,100 hectares compared to 60,000 hectares a year ago.

22
(Reporting by Ashok Kumar K; Editing by Harish Nambiar)
India's Andhra Pradesh sowing suffers due
to poor rains
http://in.reuters.com/article/2011/06/28/india-andhpra-pradesh-sowing-
idINL3E7HS1L120110628
Tue, Jun 28 2011
HYDERABAD, June 28 (Reuters) - Poor rainfall in India's southern Andhra Pradesh
state, key producer of corn, cotton, paddy and turmeric, has been delaying sowing
operations, a government official said on Tuesday.
"Sown area has drastically decreased compared to last year due to the dry spell," M
Chandra Prakash, joint director at state's farm department, said.
He said farmers have cultivated cotton on 193,400 hectares as on June 22 against 380,000
hectares a year ago, while corn on 52,800 hectares, down from 81,000 hectares a year
ago.
Turmeric covered only 100 hectares, sharply down from 3,000 hectares last year this
time, while groundnut was sown on 99,100 hectares compared to 163,000 hectares a year
ago.
(Reporting by Ashok Kumar K and Rajendra Jadhav in MUMBAI; Editing by Harish
Nambiar)
India groundnut seen ceding ground to
cotton in 2011/12
Thu, Jun 16 2011

22
MUMBAI, June 16 (Reuters) - Initial trend suggests India's groundnut acreage is likely to
fall in 2011/12 kharif season because a cotton rally has hoisted it past a raised
government-fixed minimum support price for the oilseed, industry officials said.
Western state of Gujarat and southern Andhra Pradesh are the top two groundnut
producers of India and initial sowing reports from the states show a drop in area.
In Gujarat farmers cultivated the crop on 71,300 hectares as on June 13, against 101,200
hectares in the same period a year ago. While in Andhra Pradesh, groundnut halved to
8,000 hectares till June 8, against 16,000 hectares in the same period last year.
India has raised minimum purchase price of groundnut by 17.4 percent to 2,700 rupees
per 100 kg for 2011/12 crop year.
"The hike in minimum purchase price doesn't help the farmers when the market price is
already higher," Govind Patel, partner of Rajkot-based Dipak Enterprises, said.
Spot groundnut price in Gujarat is hovering at 3,500 rupees per 100 kg, compared to
around 2,800 rupees a year ago.
Groundnut acreage will dip because farmers will turn to other profitable crops like cotton
as is the case in both these states, Patel said.
In both the states, cotton acreage has risen sharply at the cost of groundnut. The cash crop
was sown on 223,500 hectares in Gujarat as on June 13 as against 145,700 hectares last
year.
In Andhra Pradesh also, cotton acreage as on June 8 more than doubled to 38,100
hectares against 18,000 hectares.
"Groundnut area may drop slightly due to cotton. Initial reports are indicating rise in
cotton acreage, but it is too early to predict about final sowing area," said B.V. Mehta,
executive director of Solvent Extractors' Association of India.
"Large drop in groundnut area is unlikely. Prices are good in physical market."
In 2010/11 summer season farmers had cultivated groundnut on 4.98 million hectares
compared 4.47 million hectares a year ago. In India the oilseed in grown both in summer
and winter, though summer crop accounts for about 70 percent of the output.
"We will have to wait for some more time before reaching any conclusion as the current
figures are only related to pre-sowing," B. R. Shah, director of agriculture, Gujarat, said.
Traders also said that a recent rally in groundnut prices do not point to a large shift to
cotton.

22
"Prices rose by around 30 percent in last couple of months, while cotton prices have
declined sharply during the period," said Ketan Sudani, a trader from Junagadh in
Gujarat.
Cotton prices in the Indian spot market have now fallen to 43,000 rupees per candy of
356 kg each, from a record high of 61,700 rupees on March 30. But still they are up 55
percent on year.
Monsoon rains have covered some parts of Andhra Pradesh and Gujarat.
The country's summer-sown groundnut output in 2010/11 rose to 4.1 million tonnes, from
3.29 million tonnes a year ago, according to Central Organization for Oil Industry and
Trade. (Reporting by Rajendra Jadhav, Darshan Mankad in AHMEDABAD and Ashok
Kumar in HYDERABAD; editing by Harish Nambiar)
Acreage, stocks raise chances of India rice
exports
3:17pm IST (9/6/2011)
By Rajendra Jadhav
MUMBAI, June 9 (Reuters) - Steady acreage and bulging stocks are raising prospects of
India allowing limited exports of non-basmati rice after a gap of nearly four years, which
could intensify competition among Asian rice exporters and bring down global prices.
India grew rice over 40.31 million hectares in 2010/11, and after meeting domestic
demand its rice stock stood at 27.8 million tonnes against a target of 12.2 million tonnes
as on May 1.[ID:nL3E7GA0ZK]
With a favourable monsoon forecast another big crop is expected this year that will swell
stocks in the world's second biggest producer of rice and further overwhelm its
inadequate storage infrastructure that must make way for other summer-sown crops as
well.
Such a scenario is boosting expectations the government will allow non-basmati rice
exports this year.
"We should start exports to regain our share in the world market," said a senior official at
All India Rice Exporters Association, who declined to be named.

22
India already allows some exports of basmati rice. The world's biggest exporter of rice is
Thailand and the leading importer s are Indonesia, Bangladesh, Philippines and Iraq.
Vietnam and Pakistan are also key rice exporters.
Pravin Dongre, president of India Pulses and Grains Association, said the government
should rethink its grains policy as it has to make storage space for the main summer-sown
food crop.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on India's rice output, area, support price
and rice futures prices on CBOT, click:
link.reuters.com/wah99r
link.reuters.com/beh99r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ >
Monsoon rains are expected to arrive over India's main rice growing areas this weekend,
which could help erase an initial delay in planting of rice crop. [ID:nL3E7H81MH]
The monsoon normally spreads to the rice belt of West Bengal and Orissa states in the
east by the first week of June, but this year it had paused for about three days.
The two eastern states share one fifth of the rice output of India, the world's second
biggest producer of the grain.
Paddy acreage is likely to be steady because of higher cultivation in West Bengal that
will outweigh a possible drop in southern and northern India.
"Last year due to drought we could sow paddy only on 3.5 million hectares. This year we
are hopeful that we will cover an area of 4.2 million hectares, provided monsoon remains
normal as forecasted," said M. Ghosh, a director at West Bengal's farm department.
Industry officials say the progress of the monsoon is key in determining paddy acreage,
as over 40 percent of the area is rain-fed. Paddy is unhusked rice. It is milled to produce
rice.
The government is the biggest rice buyer in the country. Every year it buys the grain at a
minimum support price.
In 2010/11 season the government bought paddy at 1,000 rupees ($22.37) per 100 kg,
compared to 950 rupees a year ago.

22
"I am going to increase area to 2.5 hectares from 2.08 hectares last year, but rains should
come on time," said Arjun Singh, a paddy farmer from Hoogly district in West Bengal.
COMPETING WITH COTTON
In the second biggest rice producing state of Andhra Pradesh and the fourth biggest state
of Punjab, cotton may eat into some of the rice areas as the cash crop gave much higher
returns, state farm department officials said.
Rice acreage in Andhra Pradesh is expected to decrease slightly to 2.875 million hectares
this year, from 2.920 million hectares a year ago, said a senior official at the state's
agriculture department, who declined to be named.
In Punjab rice is expected to be sown in around 2.75 million hectares in 2011/12 against
the 2.83 million hectares a year ago, according to the state farm department.
"Farmers are likely to sow less rice in Punjab as they have fetched good returns from
cotton last year. The increase in cotton sowing during the current season is evidence of
the shift," Gurdiyal Singh, joint director in Punjab agriculture department said.
So far farmers in Punjab have sown cotton on 20 percent higher area than last year.
[ID:nL3E7H90LF]
The state governments in northern India are also encouraging farmers to trim the area
under paddy as the grain requires more water than other competing crops such as cotton.
($1 = 44.7 Indian rupees) (Additional reporting by Abhijit Deb in Kolkata, Vikas
Vasudeva in Chandigarh, Ashok Kumar in Hyderabad; Editing by Krittivas
Mukherjee)
FOCUS-India corn acreage may fall to more
remunerative cotton
http://in.reuters.com/article/2011/05/27/india-corn-area-idINL3E7GR1E320110527
Fri, May 27 2011
* Cotton seen eating into corn area in top grower Andhra Pradesh
* Corn prices rise on year, but by lesser amount than cotton
* Monsoon rains hold the key, poor rains may benefit area

22
By Deepak Sharma
MUMBAI, May 27 (Reuters) - India's corn acreage may nudge lower in 2010/11 as
farmers may prefer cotton on better returns, but any delay in arrival of monsoon rains or
patchy rainfall in growing areas may force farmers to stick with the crop, traders and
analysts said.
Corn is the preferred crop during a weak monsoon as it survives water scarcity better than
other competing crops and can also be sown much later in the season , analysts said.
The grain is cultivated during during both summer and winter, although 85 percent of the
acreage comes from the summer crop.
"The (price) trend definitely shows that there might be some reduction in corn acreage as
some farmers may switch to cotton because of better remuneration," said US Grains
Council India representative Amit Sachdev.
Spot cotton is trading at 47,200 rupees per candy of 356 kg each, up over 58 percent on
year. It touched a record high of 61,700 rupees on March 30.
At the Nizamabad spot market in Andhra Pradesh corn price was 1,152 rupees per 100 kg
on Friday, up over 28 percent on year, after exports from the south Asian country
jumped.
The southern states of Andhra Pradesh and Karnataka are the top two producers in the
country, followed by north-western Rajasthan and northern Bihar state.
P Sampath Rao, a farmer from Warangal district in Andhra Pradesh, says he had
cultivated corn on two acres last year, but is planning to slash area to 1.5 acres this year
and allocate the remainder to cotton.
In 2010/11 farmers had planted corn on 8.1 million hectares, slightly lower than 8.3
million hectares in the previous season, farm ministry data showed.
Farmers may also opt for soybean as it can be harvested by machines and the returns
largely match that of corn.
"Due to labour shortage some farmers may also opt for soybean instead of corn as returns
from both crops were almost equal," said Poonam Chand Gupta, a large trader of the
commodity in Nizamabad.
Corn output in India during the year ending May 2011 stood at a record 20.23 million
tonnes, according to farm ministry data.

22
There was a rally in corn prices during the early months of 2011, but many farmers failed
to make the most of it, having sold their crop soon after harvesting, said Vimal, who
heads the corn export division of Delhi-based trading firm Shri Lal Mahal.
Arrivals from summer-sown corn crop start from September and most farmers sell their
produce immediately after harvesting.
Due to better price realisation corn exports from the country are estimated to be at 2.8
million tonnes, a fourfold growth over the previous season.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on India's corn output, acreage, support price, click:
here
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ >
Corn acreage may see a drop in Karnataka and Andhra Pradesh, but may gain in Bihar,
where cotton is not a competing crop.
Acreage in Karnataka in 2011/12 may fall to 1.124 million hectares from 1.135 million
hectares, according to the state farm department.
Industry officials pointed out that an increasing number of farmers sow corn during the
winter as they fetch higher yields during the season than in the summer.
India annually consumes over 17 million tonnes of the grain, mainly by the poultry and
starch industry, while the surplus is exported. (Additional reporting by Ashok Kumar K
at Hyderabad, Kishore SU in Banglore; Graphic by Christine Chan; Editing by Sunil
Nair)
FOCUS-India 2011/12 turmeric area may
shrink on price drop
Wed, May 25 2011
* Spot prices drop over 42 pct on year
* Cotton, soybean seen eating into some turmeric acreage

22
By Meenakshi Sharma
MUMBAI, May 25 (Reuters) - Turmeric acreage in India is expected to drop in 2011/12
on a steep fall in prices, which may prompt farmers to divert some area towards more
remunerative crops, industry officials, farmers and traders said.
Progress of monsoon rains in key turmeric growing regions of southern and western India
would also play a crucial role in deciding the sowing trend, they said.
India is the world's biggest producer, exporter and consumer of the yellow spice.
"A drop in turmeric prices may push farmers to other remunerative crops like cotton,
soybean up to some extent," said T. Mangaiah, assistant director, statistics division at
Andhra Pradesh state, the biggest grower of the yellow spice in the country.
In Nizamabad, a key spot market in southern Andhra Pradesh state, turmeric ended down
more than 42 percent on year at 8,430 rupees per 100 kg on May 19, since when the
market has been shut due to labour problems.
"Any rise in acreage is unlikely because prices have come down significantly since last
sowing season. Also, last year area had increased considerably on higher prices," said
Punamchand Gupta, a trader from Nizamabad.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on turmeric spot and futures prices in the past five years, click:
here
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ >
Last year farmers had significantly expanded area under cultivation lured by higher prices
and favourable monsoon, resulting in record production. [ID:nSGE6BJ04R]
"So far weather conditions are favourable for turmeric cultivation," said R.K.
Vishwanath, a trader from Erode in Tamil Nadu, adding a further fall in prices could
prompt more farmers to shift to other crops.
India's annual monsoon rains are expected to arrive on its southern coast around May 31,
on schedule. [ID:nDEB000155]
The country's turmeric exports during April 2010 to February 2011 fell 9 percent on year
to 42,500 tonnes. [ID:nL3E7EV0YQ]
COMPETING CROPS

22
Turmeric cultivation usually starts in the last week of May and continues till August, and
a lengthy harvesting process begins from January. It competes for acreage with shorter-
duration crops like corn, pulses, cotton, chilli and tobacco and perennial crops like
sugarcane.
"Traditional farmers may not shift to other crops since they have been cultivating
turmeric for years. But they may give some of their turmeric land to other remunerative
crops," said Suresh Chowdhary, a trader from Nizamabad.
Industry officials expect cotton to eat into some turmeric acerage. Spot c otton is trading
at 46,500 rupees per candy of 356 kg each , after having touched a record high of 6 1 , 7
00 rupees on March 30 .
Andhra Pradesh, Karnataka and Tamil Nadu in the south and the western state of
Maharashtra are major turmeric producers.
"Big farmers are likely to decrease their turmeric sowing for the coming kharif season in
view of lower prices and high investment costs," said B Muttanna, a farmer from
Nizamabad district.
"Last year I have sown turmeric on 2.5 acres, now I have confined it to two acres only. In
the remaining area, I am planning to grow soybean this year." Muttanna said.
A timely and evenly spread rainfall in the major growing regions during the cultivating
period may boost acreage, industry officials said.
Analysts Chowda Reddy of JRG Wealth Management and Faiyaz Hudani of Kotak
Commodities, also expect area under cultivation to come down on a drop in prices.
(Additional reporting by Ashok Kumar in Hyderabad, writing by Rajendra Jadhav,
graphic by Christine Chan; Editing by Sunil Nair)
FOCUS - India cotton acreage to rise on
higher price

22
Tue, May 18 2010
By Sourav Mishra
MUMBAI (Reuters) - India's cotton acreage may increase slightly on higher prices, less
availability of water for irrigation in the northern states, which may see farmers shift back
to cotton from rice cultivation, traders, farmers and officials said.
They, however, cautioned that a ban on exports of the commodity since last month may
weigh on some growers' minds and limit the upside in acreage.
"We are expecting the acreage to remain same or a bit higher than previous year under
present circumstances," said A.B. Joshi, textile commissioner and chairman, Cotton
Advisory Board.
According to analysts, traders and officials estimate acreage may hover around 11 million
hectares up from 10.17 million hectares in 2009.
For a graphic on cotton acreage, yield, support price and output in India, click:
here
Maharashtra, the top growing state, expects a rise in acreage considering the attractive
price the commodity brought compared with competitor soybean, thanks to a jump in
export of the fibre.
"We are not expecting any erosion in cotton acreage since farmers got good remuneration
last year. Farmers who cultivated soybean did not get returns as good as cotton farmers,"
said Purushottam Raut, director, Maharashtra farm department.
India on April 19 stopped exports of cotton after shipping 6.01 million bales since the
marketing year began in October 2009. Traders had registered another 2.5 million bales
and may be allowed to ship on meeting conditions.

22
In Gujarat, India's biggest cotton producing state, the thrust is on bringing more area
under pulses and edible oilseeds, but farmers may still opt for cotton due to higher returns
fetched last year.
Traders estimate a 5-7 percent rise in acreage in Gujarat after it rose around 11.5 percent
last year.
"Pricing is enough incentive for farmers to go for cotton. But if export ban is not lifted
before sowing begins, we might see some contraction in acreage," said N.M. Sharma,
managing director, Gujarat State Co-operative Cotton Federation Ltd.
Prices of cotton have fallen about 20 percent since April 19 when exports were banned.
However, prices are still up to 34 percent higher compared with previous year, an official
with the state-run procurer and exporter Cotton Corporation of India said.
The official said despite a curb in exports domestic demand remains robust, so the local
prices will still be attractive.
Higher prices would also prompt growers of other crops to switch to cotton for higher
returns. In Madhya Pradesh and Andhra Pradesh, farmers are likely to switch to cotton
from crops like rice, soybean, pulses and groundnut, traders said.
"Cotton is likely to be the first choice for farmers as it has given better returns last year
compared to other crops including pulses," said G. Punnaiah Chowdary, president,
Andhra Pradesh Cotton Association.
"The possibility of farmers shifting from soybean to cotton cannot be ruled out as
soybean farmers are carrying huge carryover stocks," said Shiv Kumar Sharma,
president, Madhya Pradesh Farmers' Union.
Around 10 percent of farmers may opt for cotton as alternate crop, he said.
Meanwhile, in Punjab and Haryana, the fourth and fifth biggest producers of cotton in
India respectively, paucity of irrigation water could be another major factor in seeing
farmers switch back to cotton from rice.
Shortage of irrigation water may keep farmers away from rice in the cotton belt of Punjab
and Haryana, said Rakesh Rathi, president of North India Cotton Association (NICA).
However, preliminary reports from Haryana suggest sluggish planting after a prolonged
dry spell.
"If the dry spell continues, cotton sowing will be delayed, which will affect the per-
hectare yield. In absence of rain cotton sowing is getting delayed due to which cotton
quality may also suffer," said B.S. Duggal, additional director with the Haryana state
farm department.

22
(1 bale=170 kg)
(Additional reporting by Vikas Vasudeva and Surinderpal Singh in CHANDIGARH;
Darshan Mankad in AHMEDABAD; Ramesh Jadhav in PUNE; Arvind Sharma in
JAIPUR; Kaushal Verma in BHOPAL; Ashok Kumar in HYDERABAD; Editing by
Sunil Nair)
FOCUS-India soybean output seen intact
despite acreage dip
http://in.reuters.com/article/2010/06/08/india-oilseed-area-idINSGE65709B20100608
Tue, Jun 8 2010
* Soybean seen losing ground to pulses, cotton
* Output seen steady on better yields aided by normal monsoon
* Groundnut seen holding ground despite lucrative cotton
By Rajendra Jadhav
MUMBAI, June 8 (Reuters) - Indian famers may cut the area under cultivation for
soybean in 2010/11 on falling prices, but better yields may result in steady output from a
year ago, officials said.
Some of the area previously growing soybean may be diverted to pulses, cotton and
sugarcane which gave siginificantly better returns last year, B.V. Mehta, executive
director of the Solvent Extractors' Association of India, told Reuters.
"Farmers are less interested in soybean as it gave lower returns. We are estimating a drop
of 5 percent in acreage this year," he added.
In 2009/10 farmers had planted the oilseed on 9.612 million hectares, according to farm
ministry data.
Soybean prices in various major spot markets were hovering just above 1,900 rupees per
100 kg, sharply lower compared to about 2,500 rupees in June 2009. Most Indian farmers
begin cultivation of soybean in June.
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22
For a graphic on soybean output, support price in India, click: here
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The states of Madhya Pradesh in central India, Maharashtra in the west and Andhra
Pradesh and Karnataka in the south, are major producers of soybean.
"Per hectare yields fell sharply last year due to drought. This year if rains come on time,
output will remain steady at last year's level or even on higher side despite a drop in
acreage," said Radha Vallabhaji Purohit, a Nagpur-based trader.
India's weather office has forecasted a normal June-September monsoon this year, but
industry watchers say its spread is more important for sowing and will determine the
yields.
Soybean is largely a rain-fed crop, especially in Madhya Pradesh and Maharashtra, the
top two producers.
The Central Organisation for Oil Industry and Trade estimates soybean output in 2009/10
fell by 4.4 percent to 8.5 million tonnes as weakest monsoon in nearly four decades cut
yields.
As on June 4, acreage under summer-sown oilseeds in the country stood at 837,000
hectares, down 34 percent compared to 1.27 million hectares in the same period last year.
GROUNDNUT
Groundnut, the second most popular summer-sown oilseed, may not witness a drop in
acreage because its prices rose last year after a poor monsoon pulled down the crop's
summer output by 22 percent to 3.29 million tonnes.
Groundnut and soybean together account for nearly 80 percent of the country's summer-
sown oilseeds output. Gujarat in western India is biggest producer of groundnut followed
by Andhra Pradesh.
"In Gujarat, the area may fall slightly due to higher cotton prices, but that would be
compensated by higher acreage in Andhra Pradesh," Mehta said.
Groundnut lost a significant amount of its area to cotton in Gujarat last year, he added.
"Cotton gave good returns, but a large amount of diversion had already happened last
year. This year there might be a small shift towards cotton, but significant diversion is
unlikely," he said.
In 2009/10 acreage under groundnut in the country dropped by 16.5 percent to 4.45
million hectares.

22
Some traders and government officials, however, expect groundnut acreage to remain
steady to up in Gujarat.
"Shift to cotton and pulses from groundnut would be less as better monsoon prospects
could motivate the farmers to go for groundnut this year," said Pareshbhai Dhaduk, a
Junagadh-based trader.
A senior Gujarat government official said he is anticipating rise in the groundnut acreage
this year.
"We have equally distributed land for cotton and groundnut. We are not raising area
under cotton because if monsoon remains bad this year as well, groundnut can survive
with comparatively less water," said Bhupatbhai Sabad, a farmer from Rajkot district.
Out of 25 acres of total land, Sabad plans to cultivate groundnut on 13 acres and cotton
on rest of the land.
Acreage is likely to rise in Andhra Pradesh as farmers got higher prices last year, said
Deepak Bhanushali, General Secretary, at Andhra Pradesh Oil millers Association.
(Additional reporting by Darshan Mankad from AHMEDABAD and Ashok Kumar K
from HYDERABAD; Editing by Ramya Venugopal)
FOCUS-India paddy area seen up, but cotton
may be a spoiler
http://in.reuters.com/article/2010/05/28/india-paddy-acreage-idINSGE64P0E920100528
Fri, May 28 2010
By Sourav Mishra
MUMBAI, May 28 (Reuters) - Higher intervention prices and the need for higher
production after last year's sharp drop may push up paddy acreage in most states, but
higher returns from cotton may take up some acreage in north India, officials said.
In 2009/10 India produced 89.31 million tonnes of the grain, down from a record 99.37
million tonnes in 2008/09. The fall is attributed to the worst drought in nearly four
decades.
"Everyone is concerned about rice this year ..at government level we are trying our best
to bring crop size to 2008/09 levels," said a secretary level official at the farm ministry.

22
India increased the minimum price at which it bought the common variety of rice by
about 47 percent in the past two years, which has seen government granaries
overflowing.
As on May 1, India's rice stock stood at 26.1 million tonnes against a target of 12.2
million tonnes. See [ID:nSGE6450AN]
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paddy acreage, support price, government buying and output in India, click: here
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Analysts and industry watchers have cautioned that the progress of the monsoon is key to
any increase in paddy acreage, as nearly half the planted area is rain-fed.
India's weather office has already forecast a normal June-September monsoon this year,
but, spread of the monsoon is more important, industry watchers added.
West Bengal, the top paddy producer, expects a slight rise in acreage. "We are targeting
to achieve paddy acreage at 4.2 million hectares during coming Kharif season against 4.1
million hectares last season," said M. Ghosh, additional director at the state farm
department.
Andhra Pradesh, the second-biggest producer, expects acreage this year to rise by about a
third after the drought last year and an unseasonal flood cut the state's output.
"We are anticipating paddy acreage at 2.8 million hectares this Kharif season compared
to 2 million hectares last season ", said Mangaiah, assistant director at the state farm
department.
COTTON WOES
Farmers in the northern states of Punjab and Haryana, which are major contributors to the
grain coffers, are seen reducing their paddy plantings for attractively priced cotton.
Cotton prices are about 40-60 percent higher since the marketing year began in October
2009 due to soaring exports.
Besides, shortage of irrigation water may also keep farmers away from paddy, said
Rakesh Rathi, president of North Indian Cotton Association.
Punjab farmers are also reluctant to plant rice since government proceuremnet agencies
last year did not pick up the PAU-201 variety of rice, saying it didn't meet specifications.
Also, many cotton farmers who shifted to long grained PUSA-1121 variety, and did not
get expected returns may shift back to cotton.

22
The target area under paddy is likely to fall in both Punjab and Haryana in 2010/11 by
over four percent compared to last year, farm department officials said.
India is the world's second biggest producer of rice and the grain accounts for nearly
three-quarters of the harvest from summer-sown crops.
(Reporting by Abhijit Deb in KOLKATA, Ashok Kumar K in HYDERABAD, Vikas
Vasudeva and Surinderpal Singh in CHANDIGARH; editing by Sunil Nair)
FOCUS-India corn acreage seen steady to
slightly higher
Wed, May 19 2010
By Sourav Mishra
MUMBAI, May 19 (Reuters) - India's corn acreage may remain steady to slightly higher
in the coming sowing season helped by the comfortable stock situation, but farmers may
review plans depending on the monsoon's progress, traders and analysts said.
Corn output in the crop year ending May 2009 fell 3 million tonnes to 16.32 million
tonnes, according to government estimates, but a slump in exports because of high prices
and quality issues, has resulted in adequate stocks, they said.
Analysts and traders said poor exports have weighed on prices significantly.
"At this stage farmers will be cautious..they will cultivate in same area as last year," said
Madhukar Modi, a trader at Davangere, Karnataka a major trading centre.
"Progress of monsoon will be the deciding factor."
Corn is a preferred crop during a weak monsoon as it survives scarce water supply better
than other competing crops, analysts said.
The fall in output is outweighed by a fall in exports which has made stock situations
comfortable. India consumes over 17 million tonnes of the grain in a year, while the
excess is exported.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a graphic on
corn acreage, support price and output in India, click: here

22
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"There is no excess stock but we have good stock...enough for the local demand...poultry
industry was buying till recently," said Poonam Chand Gupta, a large trader of the
commodity in Nizamabad, a trading hub in Andhra Pradesh.
Exports in the year to September may drop as much as 60 percent because of rejection of
stocks due to inadequate quality. See [ID:nSGE61401Q].
"Poor exports have brought prices to the minimum support level of 840 rupees (per 100
kg)...this means globally we may become competitive again in the next season....this may
be an incentive" for farmers to increase sowing, said an official with a grains council.
Gupta said, "Indian corn by now has already become viable for exports but quality issues
are still weighing."
However, some farmers may be expecting a revival in exports and some of India's major
growing states are expecting a moderate rise in acreage.
Andhra Pradesh, the major producer of the crop may see a 15 percent increase in acreage,
said Mangaiah, an assistant director at the state farm department. Corn may also gain area
in Madhya Pradesh, another major producer.
India cultivated corn in 8.88 million hectares in 2009/10 crop year about 6 percent higher
than previous year. Corn is cultivated during both kharif and rabi (winter) seasons. Kharif
accounts for about 85 percent of the acreage.
(Additional reporting by Ashok Kumar K at HYDERABAD & Kaushal Verma at
BHOPAL; Editing by Ramya Venugopal)

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