Barley rises on buoyant exports

Export demands, mainly from Saudi Arabia, have pushed barley prices up by over 20 per cent over the last two months. Marketmen said that such levels were normally witnessed in December-January.

Two months ago, spot and futures rates which hovered at Rs 750 a quintal, have shot up to more than Rs 900 a quintal. Trade sources said that if such overseas demand via Kandla port maintained the ongoing momentum, breaching Rs 1,000 a quintal mark would be possible.

According to commodity experts, the market should stabilise at present levels, but they added that stability may not be long-lasting.

Abhishek Agarwal, a Jaipur-based trader said, "I do not foresee any bearishness in the coming months. The rally is here to stay as the new arrival season is still eight months away." In Jaipur (delivery centre), the spot is ruling at Rs 900 a quintal.

US Grains Market Report on India stated that barley prices at the marketyard have surged by about 3.7 per cent over last week. It added that the current prices are higher by 11.4 per cent compared with last year.

Barley is a four-month crop rabi crop, which is sown by mid-November and is harvested by mid-March. Arrival continues till May. In 2006-07, the country produced 1.34 million tonnes of barley which is higher than last year's 1.22 million tonnes. Rajasthan, Uttar Pradesh, Punjab, Haryana and Madhya Pradesh are the leading producers of the commodity.

In Rajasthan, which accounts for almost one-third of the production, the current stock in the mandis across the state is 70,000 tonnes (8 lakh bags of 85 kg each).

In Srimadhopur alone, another big barley production centre in Rajasthan, around 1 lakh bags (8,500 tonnes) is in the mandis.

Market sources said the kind of rates barley has fetched so far might prompt farmers to go for the crop on a larger scale in the coming season. Barley is known as a 'rough and tough' crop, which does not require any special attention. A slight rainfall during winter is healthy for a good crop.

According to market sources, several exporting firms and multinational companies have recently finished procurement from Rajasthan. On an average, around 30 per cent of the output goes for the industries and the rest cater to cattlefeed.

The barley contract for September delivery on National Commodity and Derivatives Exchange (Ncdex) closed last week at Rs 922 a quintal, up 4.65 per cent against Rs 881 a quintal in the previous week.

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ROUGH AND TOUGH CROP

Exports demand pushed rates to Rs 900/quintal

Market may stabilise at current levels, but stability may not last long

Bullish rally to stay

Next crop expected after 8 months

About 30 per cent of the crop is for industrial use and the rest is used as cattlefeed