Tea sector hit by poor regulations

Inherent imperfections and poor regulations in the Indian tea primary market are cited as the real reasons for the plight of the plantation industry which is reeling under lower price realizations. Industry circles point out that while the prices of tea at the retail level has been consistently growing, reflecting an increase in demand, prices at tea auctions (the primary market), has been falling for the last five years.

Courtesy- The Economic Times, 13th November 2002
( Website : www.economictimes.com )

Rubber prices fall

After a rally that lasted for several weeks, rubber prices to be on a downward slide. In the last one-week the prices have registered a fall of almost Rs 4 per kg. The expectations that the prices will remain above the Rs 40 mark have been belied. Despite this, however, the present prices may last in the medium term if the demand picks up, say experts. The increase in production of natural rubber is said to be one reason for the decline in prices.

(Courtesy- The Economic Times, July, 15)

Spices steady

A steady trend was observed on the spices market in the absence of market-moving factors. All spices were settled at their overnight closing levels. Meanwhile, the oil and oilseeds market remained closed today due to death of a member. However, business was normal in the futures section. September delivery contract opened higher at Rs 1,360, after moving in a narrow range, after moving in a narrow range, it closed at the same level, showing a gain of Rs 15 against the last close of Rs 1,345.

(Courtesy- The Economic Times, July, 5)

Support price for tobacco ruled out

The Indian Tobacco Association, a body of tobacco traders , has completely ruled out accepting tobacco growers' demand for fixing minimum guaranteed price (MGO) for the ensuing '02-03 season as per the formula decided in '98.

(Courtesy- The Economic Times, July, 2)

Tea volumes may dip 8% in South

The United Planters’ Association of Southern India (Upasi) has projected an 8% drop in the output of South Indian tea for the current calendar year. Upasi tea committee chairman said the crop would drop to 1,830 lakh kg from 2,030 lakh kg in the previous calendar. He attributed the decline to the reduction in inputs in the wake of a drop in price realizations. Adverse weather was the other key factor that is likely to drag output, he said.

(Courtesy-The Economic Times, 28th June)

Pepper price rise triggers imports

India, the largest producer of black pepper in the world, has become a net importer of pepper last month. As per the trade estimates, the country exported 1,962 tonne of black pepper in May. On the other hand, the imports stood at 2,554 tonne for the same month. Chairman, Spices Board said that the higher import of pepper in May is just a “temporary phenomenon”. He said that when the prices of blackpepper increased in the domestic market some of the exporters who had commitments have to rely on imports.

(Courtesy-The Economic Times, 27th June)

Small coffee growers seek exclusion from central IT

Small coffee growers, constituting 98% of the cultivators of this commodity are agitated over a recent clarification issued by the Central Board of Direct Taxes (CBDT) which subjects 25% of their realizations derived from the sale of coffee grown and cured in India to central income tax (CIT).

(Courtesy-The Economic Times, 27th June)

ICTA coffee auction hit as summer arrives in West

The ICTA auction response was once again affected by the off-season factor following the onset of summer in the West and the consequent impact on consumption in the export markets.

(Courtesy- The Economic Times)

Lowe Personal to promote Indian coffee

The Coffee Board has appointed Lowe Personal (a member of the Lintas group) to take up a major communication initiative about Indian coffee in key overseas markets, according to the Board. The promotions would target traders and roaster and would be tailored to product needs of individual market like washed Arabica in the US and Germany and Robustas in Italy. The appointment of Lowe Personal comes in the wake of recommendation of international consultants McKinsey that there was an urgent need to improve awareness about Indian coffee in target markets among roasters and traders.

(Courtesy- The Economic Times)

Tea exports up 6%

Tea exports between January and March this year increased 55.9% to 41.3m kg compared to 39m kg in the corresponding period of ’01, Indian Tea Association (ITA), the apex body of tea manufacturers, said. Despite the marginal 2.3m kg increase over corresponding quarter last year, the value of exports dipped Rs 211.3 crore too Rs 337.9 crore from Rs 359.2 crore last year, ITA said.

(Courtesy- The Economic Times)

Cofei trading hit as director declared a defaulter

Trading on the Coffee Futures Exchange of India (Cofei) has been hit following a leading exporter and one of the directors of the exchange being declared a defaulter and going to court on the matter.

(Courtesy- The Economic Times)

Karnataka stands by farmers, to procure arecanuts

In a move aimed at helping the arecanut growers in distress due to sharp fall in open market prices, Karnataka government has decided to step in with its market intervention scheme on an experimental basis.

However, procurement of the arecanut will be confined to the ``chali’’ variety of arecanut grown mostly in the coastal regions whose open market prices have fallen to Rs 45 to Rs 47 a kg.

The Central Arecanut Marketing and Processing Co-operative Society (Campco), which will entrusted with the task of procurement, will be offering a minimum support price (MSP) of Rs 65 a kg recommended by the state’s agricultural prices commission.

(Courtesy- The Economic Times)

Coffee output may dip

India’s coffee output in the next crop year starting October is set to dip more than five per cent from the current year, which also could end up with an output lower than state estimates, growers said. The government-run Coffee Board estimates output in 2001/02, for which harvests are over, at 300,600 tonnes, below its earlier forecast of 317,600 tonnes. Growers say this could end up closer to 290,000 tonnes in the final analysis. “There is still not much coffee floating around (after the harvest).” Kallangodan Moidu, vice-chairman of the Coffee Board said he estimated the current crop year’s output at 290,000 tonnes.

(Courtesy- The Economic Times)

Relief package for coffee growers

The government and the Reserve Bank of India (RBI) have announced a new relief package for coffee growers today as prices of this commodity are continuing the downward trend. This envisages consolidating all types of coffee Term Loans (SCTL) 2002 - with a two-year repayment holiday. Banks will also consider charging 1% lower interest for the moratorium period while fresh crop loans will be considered by financial institutions after taking a more realistic view of the cost of cultivation.

(Courtesy-The Hindu)

Packaged brew loses steam in Jan- Feb

The storm in the branded tea cup doesn’t seem to subside. Consumption of packaged tea has declined further in the first two months of calender ’02 over the same period last year. This category has suffered a negative growth of 7.9 % in volume and 8.7% in value terms.

(Courtesy-The Economic Times)

Good response to APFDC coffee sale

There was a good response to the sixth auction of the ‘01-02 season held by the Andhra Pradesh Forest Development Corporation (APFDC) at Bangalore. In the latest auction, the entire offer of 150.552 tonnes was sold. The entire offer was Arabica of the latest 2001-02 crop. Some 110.583 tonnes of new crop Plantation (Washed Arabica of the ‘01-02 season) was offered and sold. Some 62.370 tonnes of Plantation A were sold for an average of Rs 53.60 a kg. Some 12.420 tonnes of Plantation Peaberry were sold for an average of Rs 49.81 a kg. Some 20.115 tonnes of Plantation B were sold for an average of Rs 48 a kg. Some 11.808 tonnes of plantation C were sold for an average of Rs 36.50 a kg. Some 39.969 tonnes of Arabica Cherry was offered and sold. Some 21.618 tonnes of Cherry AB were sold for an average of Rs 37.09 a kg. Some 10.449 tonnes of Cherry C were sold for an average of Rs 25.72 a kg.

CST hike forces tea trade to defer Cochin auction

Tea trade in the state has run into rough weather with the Tea Trade Association deciding to defer the Cochin Tea Auction for a week demanding a reduction in the Central Sales Tax (CST). An amendment made to section 8 of the Central Sales Tax Act in the Finance Bill '02-03 has resulted in a sharp increase in CST from 4% to 9.2%. The Cochin auction centre, one of the largest in South India, has been steadily losing volumes to other centres as tax structure is more favourable in these centres compared to Kerala. Any migration of quantities from Cochin auction centres to other centre will result in a direct loss of revenue to the state government.

Cashew export falls 10%

As per estimates done by the Cashew Export Promotion Council, the cashew exports from country has registered 9.9% dip in the April to January period of the current financial year. The exports stood at Rs 1422.7 crore as against Rs 11563.3 crore during the same period of the previous year. The decline in the value of exports is despite the fact that the quantity of exports increased by 15% to touch 7710111m tonnes. The exports stood at 67036m tonnes last year. As per the estimates the unit value declines to Rs 184.5 a kg this year from Rs 233.2 a kg last year. Sources said that the main reason for the decline in export turnover is the fall in the prices of cashew nuts. The prices fell by 29% in the last couple of years.

Tea Board launches campaign in Israel

Tea Board of India has launched a promotion campaign of Indian tea in the Jewish state and plans to hold major events during the current year. India exports more coffee than tea to Israel whose major part of seven million dollar tea imports, is from Sri Lanka. The tea board is also working with leading Israeli restaurants to organize events for tasting of Indian tea as well as the food and snacks that accompany.

Coffee output drops 3% in ’01- ICO

Among 51 coffee producing members countries of the International Coffee Organization dropped by 222.8% in ’01, even though international prices plunged as a result of rising exports. Exporting members of the ICO produced 109.3m bags of coffee in ’01, down from 112.4m bags in ’00 and 114.5m bags in ’99. Global exports in the 12-month period ending January ’02 totalled 89.9m bags, a 1.2% growth over the previous year, according to figures provided by the ICO.

Gram dips

In the New Delhi grains and pulses market, prices of gram Rajasthani continued to fall on increased arrivals and closed Rs 40/50 lower at Rs 1,625/1690 as compared to previous level.

Cocoa contract

March cocoa futures shot up to a new life-of-contract high on heavy fund buying in the face of good trade and manufacturer selling, trader said.

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ICTA coffee auction goes up due to domestic sales

The larger stocks of green coffee and absence of frost in Brazil had an impact on the weekly ICTA auction in Bangalore.

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Spice sector meets to step-up export trade

The Spice Board has called for a meeting of the exporters, growers and other players in the sector to discuss strategies to step up export trade, as there is a sharp drop in the export of spices including pepper.

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Coffee Board expects export of 2.5 lakh tonnes in ’00

Banglore state Coffee Board stated that it expects the country’s coffee exports in ’00 to touch a record 250,000 tonnes compared with 218,230 tonnes in ’99.

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Lower price trend at Calcutta tea auction

At the Calcutta tea auction sale an overall lower price trend was witnessed in all categories of teas during the past week.

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Tariff regime protection must for tea planters

It is stated by the president of United planters association of southern India (Upsi) that protection under tariff regime is must for small tea growers and domestic industry.

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Exports of arecanut to Maldives:Campco

The Central Arecanut and Cocoa marketing processing company (CAMPCO) has signed an agreement with Traders, Thiruvanthapuram to export Areacanut to Maldives and other countries.

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Organic tea market : A thrust area

There is a shift to organic foods and organic beverages. Tea Board chairman estimates that exports of certified organic tea is a significant thrust area which has taken off over the last five years.

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Imposed taxes affects naphtha-based urea units

Naphtha-based urea manufacturing units has affected as the govt. imposed many taxes on naphtha, it results into increase in product landed costs, as reported.

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South India : 10% positive growth in tea output

The provisional data released by the United Planters’ Association of Southern India (Upasi) has estimated that the three tea growing states in south India have all clocked positive growth for the January-June six month period.

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International coffee: Submerged trends

International market sources reported that the coffee futures sank 13 percent to eight-year lows hammered by selling on news that Brazil’s key growing region was frost-free.

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Rise in Indian silk exports

During the first quarter of the current financial year silk exports of India rose by 30% in value terms.

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IFFCO recorded a highest sale of 51.43 lakh tonnes

The Managing Director of IFFCO informed that during the year 1999-2000, IFFCO recorded the highest ever sale of 51.43 lakh tonnes of fertilisers which comprise 16.58 lakh tonnes of NPK/DAP and 34.85 lakh tonnes of urea as against the previous best of 46.23 lakh tonnes of fertilizers during 1998-99.

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Indonesia's selling pressure impacts pepper export

Indian pepper trade is impacted by heavy selling pressure of Indonesian pepper. Indian exporters have stopped booking orders because they cannot source pepper at competitive prices.

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Pepper export may not reach the target

The export performance of the first two-month’s indicates that black pepper exports may not reach the target set by the Spices Board for the current year.

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Tobacco trading volumes in Andhra Pradesh

In Andhra Pradesh the trading volume of tobacco at 21 auction centres is unable to touch the proposed level due to the jamming of auction platforms.

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Spice export target unlikely to be achieved

Exporters explain that last year India exceeded its target of spice export in terms of value and hence this year the target has been fixed marginally higher.

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Revised concession rates of fertilizers

For making on account payments to the fertilizer companies, the CCEA again revised the base rates of concessions.

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Tobacco board procures 20m kg at support price

The Tobacco Board has resolved to pick up 20 million kg of low-grade tobacco at the ongoing auctions in Andhra Pradesh at a minimum support price (MSP) ranging from Rs. 11.30 a kg to Rs. 15.60, depending on the grade.

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Tea : Output and exports

Project report from Indian Tea association (ITA) states that the tea industry expects a strong recovery in output and exports in calendar 2000, but low auction prices and rising costs is still a matter of concern.

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Cuts in fertilizer subsidy

As per the decision of the Cabinet Committee on Economic Affairs (CCEA) ,Govt. further revised the base rates of concessions for making ‘on account’ payment on the sale of phosphatic and potassic fertilizers., the base rate of concession for indigenously produced di-ammonium phosphate (DAP) would be reduced to Rs. 2800 as against Rs.3000 earlier.

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Indian silk product exports for ‘99-00

The Central Silk Board (CSB), press report stated that India’s exports of silk products for ‘99-00 have increased in dollar-terms by 16.6 per cent over the previous financial.

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Bumper jute crop forecast causes anxiety among farmers

The forecast for bumper jute crop this year has caused more worry to almost a million Indian farmers, with the minimum support price (MSP) mechanism in a shamble bumper crop would mean a sharp decline in price, farmers will have to dispose of their produce at whatever price they can get.

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Coromandel Fertilizer's: High turnover

Hyderabad news agencies reported that the Coromandel Fertilizers has achieved a 27% growth in turnover at Rs. 613.85 crores against Rs. 484.47 crores.

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Fair response to APFDC coffee auction

The Andhra Pradesh Forest Development Corporation (APFDC) organized the tenth auction of the season in Vijayawada on May 27. There was a fair response to it.

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India’s herbal exports decline

India’s herbal export market is declining day by day, which is because of low and improper gradation, according to the Chairman of the Task Force in Ayurvedic Medicines.

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Bumper crop forecast spells concern for jute farmers

The prospect of a bumper jute crop this year is more a cause of worry than pleasure to almost a million Indian farmers, with the minimum support price (MSP) mechanism in a shamble.

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Increase in world coffee production

It is forecasted that the world coffee production stays at a record 108.7m bags in ‘00-01, up nearly 2 % from 106.8m bags last year and 5.7 lakh bags above the previous record set in ‘98-99, as reported by the US Agriculture Department USDA estimated Brazil coffee production at 28.1m bags, unchanged from the March 10 forecast.

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Subsidy grants for small Tea growers

In south India the govt. has announced a subsidy of up to Rs.5 per kg to small tea growers badly hit by falling auction tea prices.

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Jute exports shrinks as supply falls

There is a short fall in Indian’s jute exports, primarily owing to the reluctance of jute producers to supply their products to exporters. Jute exports between April’99 and February’00, the first 11 months of the fiscal year, declined to Rs. 482 crore, a drop of 11.12 % from the Rs. 543 crore in the corresponding period of the previous fiscal year, according to commerce ministry figures.

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Tea exports sink by 22% as demand fall

According to Union commerce ministry’s figures made available in Calcutta, the centre of the Indian tea industry, exports plunged to Rs. 1,766 crop in ‘99-00 from Rs.2,265 crore in the previous year, a drop of 22%.

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Changing price trends of Arecanuts

The high prices of arecanut in the last few years have given the impression that the prevailing prices are low. After a year or two of good fortune arecanut prices are declining. In the main producing areas of Kerala and Karnataka, the prices have registered a sharp fall.

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Sluggish coffee consumption even as production rises

In the coffee growing regions like Karnataka, Kerala and Tamil Nadu, things aren’t as healthy as they should be. The coffee crop is up. Production and productivity figures are healthy.

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Indo-Lankan marketing collaborations

India is now exploring marketing collaborations for tea, rice and sugar.

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Nilgiri tea growers faces green leaf price decline

Teas grown in the part of Nilgiri hills are generally known as South Indian Teas and account for around 200 million-kg a year, 20-25 % of the total Indian crop.

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Consumption and import trends of fertilizer

There is a substantial increase in consumption of fertilizers in the country consumption of fertilizers (all varieties) has increased by 52.5% during the nineties from 12.55 million tonnes in 1990-91 to an estimated 19.15 million tonnes in 1999-2000.

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Madras Fertilizers Ltd.: A Profit Record of Rs. 27 crore

Chennai news agency stated that Madras Fertilizers Limited (MFL), a public sector undertaking, has made a high record profit of Rs 27 crore.

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Indian Silk products Export

The export of silk products like silk goods, silk yarn and silk waste of India have increased for the year ‘99-00. It was reported that there is increase of 16.6 %in terms of dollar over the previous financial.

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Rice bran oil output dropped down

The major states of producing rice bran oil are Punjab, Andhra Pradesh and West Bengal. Besides this, some production of rice bran oil also takes place in other states like Tamil Nadu, Karnataka etc.

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Calcutta market :Jute prices erosion

In Calcutta gunny market, prices of almost of categories of jute goods lowered down. The prices touched fresh lows with standard B Twill plummeting to Rs 20,600 per tonne and that of hessian settling lower at Rs.29,400 per tonne.

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Rubber market trends

Increasing market demand of rubber has led to high prices. Meanwhile the production in 1999-00 has been estimated that 5.54 lakh tonnes.

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Cashewnut export

Though there was a fall in the cashewnut production in the current year the world over, the Indian Cashewnut Industry was not affected because part of domestic supply was diverted to export market.

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Private traders: Tobacco procurement price of STC

 As STC’s tobacco procurement price has failed to enthuse private traders into participating in Andhra’s auction platforms, and the Union government may  introducing a price band in consultation with tobacco companies.

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Indian tea to be imported to Pak through third party

Due to worsening relations Pak and India, Indian tea exporters are contemplating to export tea to Pakistan through a third country. Indian tea exporters are switching to increase the exports to traditional markets in 2000.

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Rubber Market

Thai rubber prices were steady on Tuesday due to tight supplies caused by steady rain and sluggish demand, from overseas buyers, traders said on Tuesday.

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A Bonanza: For Phosphatic Fertiliser Importers

Importers of phosphatic fertilisers, especially diammonium phosphate, have reaped a bonanza of Rs.375 crore during 1999-2000 on account of faulty subsidy policy of the Government.

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Market trends of tea import

The import scare has bitten tea also, basic duty on this item too is up from 15 per cent to 35 per cent. Sri Lanka will be affected by the change in the short run since tea import is freely allowed only from SAARC countries.

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Minimum support prizes of jute

Minimum support prices (MSP)of all types of jute and mesta has fixed for various up-country markets in different jute/mesta growing states for’00-01 season on the basis of the MSP of Rs 785 per quintal for Assam TD-5 grade of raw jute already declared by the Union government for the season.

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World coffee exports

World coffee exports in March 2000 are down 8 per cent on the year at 7.6 million (60-kilogram) bags, said the International Coffee Organisation on Thursday.

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Sluggish Market Demand of Spices

Demand in major spices remained sluggish due to drought conditions in some of the states.

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Tea planters welcome Govt’s move on import duty hike

 Tea planters, on Wednesday, welcomed the govt.  proposal to raise the basic customers duty on tea imports to 35% from 15%, saying the move was likely to improve the market sentiment.

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Nagarjuna Fertilisers’: more turnover but less profit

Nagarjuna Fertilizers and Chemicals (NFCL), the flagship company of the Nagarjuna group, has reported a higher turnover of Rs. 1,435.96 crores but a lower net profit of Rs. 113.50 crores due to higher interest burden of Rs. 283 crores (Rs. 246 crores), and tax provision of Rs. 34.62 crores (Rs. 16.86 crores) for the year ended March 31,2000.

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Cashew export and payment of ‘market fees’

IN an unprecedented action, the Agriculture Produce Marketing Committee (APMC), Mangalore, has seized 113 tins of cashew kernel worth Rs 3 lakh from two exporters and has sent notices to major cashew kernel exporters seeking payment of "market fee".

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Market Trends Of Black Pepper

THE prices of black paper are likely to women higher due to the sharp fall in the pepper crop in the country and the higher exports this year.

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Tea and import duty

Banglore bureau reported as it is essential that tea like other agriculture commodities should be given adequate tariff protection by increasing the basic import duty to at least 35 per cent.

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The scenario of marine export industry

Marine export destinations the US, South-East Asia, Japan, China etc., registered negative growth during the first quarter in current year.

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Cool Coconuts

The prolonged bull run seems to over as far as coconut oil prices are concerned. After ruling at a high level through out 1999, coconut oil prices have plunged to a low last week. Market analysts say that the prices seems to be returning to the 1996 levels.

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Liberal imports of tea leads to global output fall

Globalisation is surely taking its toll on the tea industry. With the Indian government adopting a more liberal stance towards imports into the country, the domestic tea producers are at a loss to deal with the continuing situation of depressed prices.

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