Presented to Professor M.

Panduranga vithal and Class mates of Indian

Institute of Plantation Managemment

PRESENTED BY:-
Gossypium
hirsutum
 INTRODUCTION

 Origin: Asia, Pre- Colombian America

 Cultivation

 Economic importance
 Production (millions of metric tons)

0
1
2
3
4
5
6
7
8
9
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Pa ates
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Fr i
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Sy
Tu ria
rkm Egy
en pt
i
Au stan
Cotton Production

Ka stra
za lia
kh
Ta sta
jik n
ist
Ot an
he
rs
Year 2005
Year 2006
Year 2007
MAJOR TRADING CENTERS
OF COTTON

New York Board of Trade (NYBOT) –

New York
Shanghai Commodity Exchange –
China
 The cotton trading
centers in India
 Akola, Parbhani , Nagpur , Yeotmal , Dhule Ahmednagar, Sangli,
Mumbai (Maharashtra)
 Adilabad , Karimnagar, Guntur, Kurnool (Andhra Pradesh)
 Surendranagar , Bhavnagar(Gujarat)
 Sriganganagar, Kota (Rajasthan)
 Bhatinda, Ludhiana (Punjab)
 Hissar, Sirsa (Haryana)
 Coimbatore (Tamil Nadu)
 Gulbarga (Karnataka)
 Delhi
 Kanpur (Uttar Pradesh)
WORLD COTTON CHAIN
 Flow chart for trade in cotton

Source: UNCTAD secretariat (Data: Comtrade statistics - SITC Rev.3, 2631:

"Cotton -other than linters- not carded or combed")
 IMPORTANT WORLD
COTTON MARKETS
 East Africa
 Tanzania
 Uganda
 Zimbabwe
 Uzbekistan
 West Africa
 Central Asia
 United States
 FACTORS INFLUENCING
COTTON MARKETS
 Cotton's relationship with synthetic
fibers.
 World economic growth and its
impact on consumer textile demand.
 Seeking new consumption markets
for cotton products.
 Fiber innovation to enhance the
spinning ability of the raw cotton,
with the aim of encouraging demand.
 Average annual Prices of cotton

6000

5000

4000
Prices in Rs./quintal

Year 2007
3000 Year 2006
Year 2006
2000

1000

0
International(Rs./quintal) India average (Rs./quintal)
Futures Contract Specifications
Cotton long – Future prices- February 2008- MCX
Cotton long – Future prices- March 2008- MCX
Mustard Seed– Future prices- April 2007-MCX
Indian 31 mm cotton (COTI31 GTR) Dec 2006-Delivery centre-Guntur-NCDEX
 JUTE PROFILE
CONTENT
Introduction
Producing Countries
Exporting countries
Importing countries
Important Trade Centers
Production Volumes
Price Chart
Jute Contract
 Changes in Commodity agreement
terms
 INTRODUCTION
India is the largest producer of jute in the
World.
second most important natural fiber.
60% of the world’s production of jute.
Total area in India 1 million hectares of land.
The size of the jute industry (including raw
jute production) is app. Rs. 4500 crore (06-
07).
76 jute mills in the country.
crop is grown in 87 districts and spread
across 9 states.
 Jute Production

1800.00
1600.00
Production (thousand tones)

1400.00
1200.00 Year 2006-07
1000.00
Year 2005-06
800.00
600.00 Year 2004-05
400.00
200.00
0.00
ia

l
pa
r
Ind

ma
es

Ne
an
la d

My
ng
Ba
PRODUCING COUNTRIES
IN THOUSAND TONES
 Supplying/Exporting
countries
Bangladesh
India
Thailand
Myanmar
China (Kenaf and allied
fibres)
Nepal
 Major Jute goods Importers in 2006-07

Saudi Arabia,
Germany, 4% Germany
UAE, 3% 4%
Saudi Arabia
USA, 16% UK, 5%
UK
Belgium
Belgium, 6%
Egypt
Turkey
Egypt, 7% Syria
Ghana, 11% Ghana
USA
Turkey, 9%
Syria, 9% UAE
 PRODUCTION IN
INDIA

West Bengal
 Bihar
 Assam`
 Orissa
 Andhra Pradesh
 Tripura
 TRADED BY
 NCDEX
 NMCE (National Commodity and
Derivatives Exchange Ltd.
 National Multi Commodity Exchange
of India Ltd.
International Trade Centre
(Bangladesh)
 Average annual prices of Jute

1600

1400

1200
Prices (Rs./quintal)

1000 Year 2007

800 Year 2006

600 Year 2005

400

200

0
International(Rs./quintal) India average(Rs./quintal)
 International/Regional
Commodity agreement terms
Government of India and UNDP made a joint effort to
plan and assist technology development in the
year 1992.
The International Jute Study Group (IJSG) is an
intergovernmental body set up under the aegis of
UNCTAD to function as the International
Commodity Body (ICB) for Jute.
India imports these jute and jute items from
Bangladesh, Bhutan, Maldives and Nepal.
Kolkata, November 19, 2007: Indian jute mill exporters
have bagged two global jute tenders.
Kolkata, September 20, 2007: The textile engineering
division under the institute Engineers (India) is
 MARKETING CONTRACTS
Pools:- Traded on the produce of
acreage to protect from under or
over selling.
Fixed:- Traded on a fixed price, just
like any merchant.
Options:- Options provide a useful
method of hedging against
market volatility.
Storage:- With cash flow and
storage under severe pressure on
FUTURE PRICES
 FUTURE CONTRACT
Trading System:- NMCE’s derivative.
Trading hours:- Monday .to Friday:10 am to 5 pm.
Saturday: 10 am to 2 pm.
Unit of Trading:- 25 bales (i.e. 500 bags per bale).
Delivery unit:- 25 bales (i.e. 500 bags per bale for B
twill 665 gm).
Quotation/Base Value :-Rs per 100 bags.
Tick size:- Re 1.
Quality specification:- Size: 94 cms X 57 cms
Weight: 665gms (per bag)
threads:76 X 28 threads (per dm)
Quantity variation:- +/- 2%
Price limit:- (+) / (-) 6 % from the previous days
closing price.
Jute contract April 2008- MCX
Jute contract March2008- MCX
Jute contract Februray2008- MCX
Raw Jute (JUTRAWKOL) -Jan 2008- Rs/QUINTAL- Delivery centre- Kolkata-NCDEX
 INTRODUCTION
• Brassica napus
• Rapeseed- 40% Oil – twice that of
Soybean.
• Among vegetable oil sources, 2nd to
Coconut in terms of Oil content.
• Hyola- High yielding hybrid in
rapeseed and mustard.
• Vegetable oil, Animal feed, Biodiesel
(EU, China,..), Manure.
• Canola- reg. name by Western
Canadian Oilseed crushers
 Canola oil: Erucic acid < 2%; glucosinolates
< 30 micromoles/ gm of seed.
 Rape seed oil- healthy for heart . Omega-6 &
mega 3 FA in 2:1 ratio.
 Reduce cholesterol level and serum triglyceride
level.
 Keep platelets from sticking together.
 Meal – 38% protein- cattle feed.
 2% to 20% blending as bio diesel.
 High erucic rapeseed oil as lubricant where high
heat stability required.
 1977-78: acceptance as cooking oil- increase in
production.
 CLIMATE
 At sowing time- India (October-
November)- dry cold weather, temp.
< 28 deg. C
 Warmer & short winter- decrease in
yield
 Competing crops: Wheat, Bengal
gram, etc.
 Irrigated crop- well drained loamy
soil.
 PRODUCING COUNTRIES
 China (11-12 million tons)- 27% of
world production
 European Union (10-13 million tons)
 Canada (6-7 million tons) – 19 %
 India (4-7 million tons)- 13%
 Germany (5.3 million metric tons)
 France (4.1 million metric tons)
 United Kingdom (1.9 million metric
tons)
 Poland (1.6 million metric tons)
 Rapeseed

P,E,i
P,I,e

I I
P,I
P,i

P,E

P > Producing Country

E > Exporting Country
I > Importing Country
 Rape Seed Production

20
Production (million

15 Year 2007
tons)

10 Year 2006
5 Year 2005
0
India

Other
China

Canada

European
Union
Countries
•Canada exports 60 % 0f production
•Japan – largest importer of the oilseed
•China 1st producer of oil, also importer. France
and Germany currently also importer of the oil
•Meal- exporter- Canada – 55%, India- 25 %
•95 % of production consumed in India as edible
oil.
•India and China- 40 % of worlds consumption
•Govt. – mandatory to use rapeseed oil in
manufacture of Vanaspati.
 IMP OR TING C OUN TRIE S
SUPPLYING /EXP ORTIN G
COU NT RI ES

1. Canada (2.5-3.5 million 1. Japan (2 million tons)

tons) 2. Mexico (1 million tons)
2. Australia (1.5 million 3. United States
tons)
DOMESTIC SPOT MARKET:
1. Hapur
2. Alwar
3. Bikaner
4. Jaipur

• Peak arrival period for the commodity in these markets is

March-May.
• Major portion of the commodity enters the regulated mandies
and is purchased by oilseed crushers.
 International Rapeseed Trade centre

 Winnipeg Commodity Exchange at Canada (North

America ) trades in canola (hybrid mustard)
futures. It is the main price-discovery mechanism
for worldwide canola trade.
 Its quotes are now traded on the Atlanta-based
Intercontinental Exchange (ICE) platform.
 Rapeseed is traded on the Euro next exchange.
Euro next merged with NYSE Group to form NYSE
Euro next, the first global stock exchange.
 EU is centre of trade- Hamburg exchange in EU.
 The UK market
3 Main variety types of grades:
• Double low - (00) - low in glucosinolates and erucic. Used
for food, fuel and industrial purposes
• High Oleic + Low Linolenic (HOLL) - low in glucosinolates,
erucic & linolenic, and high in oleic Higher stability than
double low removes the need for Hydrogenation for frying
use.
• High Erucic Acid Rape(HEAR) - low in glucosinolates, high
in erucic. Used to produce erucimide for polythene
manufacture.
Rapeseed Exchanges centers in
India
 Vijay Beopar Chamber Ltd., Muzaffarnagar.
 Rajdhani Oils and Oilseeds Exchange Ltd. Delhi
 National Board of Trade. Indore.
 The Chamber Of Commerce. Hapur.
 The Central India Commercial Exchange Ltd,
Gwalior
 Bikaner Commodity Exchange Ltd., Bikaner.
 National Multi Commodity Exchange of India
Limited.
 Multi Commodity Exchange of India Ltd.
 National Commodity & Derivatives Exchange Ltd.
 Haryana Commodities Ltd., Hissar.
Rapeseed - Mustard Seed
Futures Contract Specifications

Trading system BCEL Trading System

Trading hours Monday to Friday 11:30 am to 5:00 pm
Unit of trading Two metric tonne (2 M.T.)
Quotation/Base Value Rs per 20 Kgs
Tick size Re 0.10 Per 20 K.g.
Delivery unit 12 M.T.
Quantity variation (+/-) 2% on permissible quantity
Quality specification/
Basis of futures
Oil content 40.0%
Moisture 5.0%
FFA 1.5%

Foreign Matter, Sand & Silica, Damaged Seed 2.0%

Delivery center , Jaipur, , Shriganganagar & Nagour

Due date 20th day of delivery month (Same as contract month)
Delivery days
-Within Between 2nd and 6th days from LTD by 5 P.M
-Outside Between 2nd and 8th days from LTD by 5 P.M
Price Variation Per (UOT) Rs. 1500/-
Maximum & minimum rate 20% up down of first settlement rate
 Indian export- import
•
situation
Import of rapeseed oil negligible
• High import duty- bound tariff and
applied tariff- 75%
• Import of oilseed in general- 30%
import duty
• For import of Genetically modified
oilseed- approval from GEAC
(genetically engineered approval
committee)- no clear policy
• Plant quarantine- devitalised seed-
splitting is costly, -deterioration of
 Continued...
• Export- no quantitative restrictions or
licensing requirements but difficult
due to lack of price parity
• Indian rapeseed meal is exported to
• China
• South Korea
• Thailand
• Vietnam
• Indonesia
• Malaysia, Taiwan, UAE
 PRICE DATA
Years
Mar kets 2007 2006 2005

1 International(US$/Ton) 427.33 313.25 260.08

International(Rs./quintal) 1690.09 1238.90 1028.61

2 Average(Rs./quintal) 1848.72 1654.33 1810.48

 Average annual Prices of Rape seed

2000
1800
1600
1400
Prices (Rs./quintal)

1200 Year 2007

1000 Year 2006
800 Year 2005
600
400
200
0
International(Rs./quintal) India average(Rs./quintal)
 Minimum support price
• Agencies for procurement of
rapeseed are:
• NAFED (national agricultural
cooperative marketing federation)-
nodal agency
• Oilseed cooperatives
• National Dairy Development Board
(NDDB)
• Year 2004-2006: NAFED in difficult
situation due to difficulty in
 OTHER INTERESTING
DEVELOPMENTS
 Rapeseed/Canola prices are forecasted to rise
because of rise in United States (US) soybean
prices and European Union (EU) demand for bio-
fuels (particularly Germany).
 India exports around 4 lakh tons of Rapeseed
meal.
 80% of the Canola crops planted in Alberta,
Manitoba, and Saskatchewan are GM
(genetically modified food) herbicide-tolerant
varieties.
 1,400kg of oil when converted to Rape Methyl
Ester would allow a car to travel approx 26,500
kilometres!
 Argemone mexicana weed seed adulteration –
had created problem in Indian Rapeseed oil
market.
 Acceptance of rapeseed meal in animal feed in
Europe will further increase the demand for the
Mustard JPR– Future prices- March 2008-MCX
Mustard JPR– Future prices- February 2008-MCX