Commodity

The National Spot Exchange Limited (NSEL) has announced the opening of its long-awaited broker settlement scheme on August 25. This initiative is aimed at resolving claims tied to the infamous Rs. 5,600 crore payment default case that rocked India’s commodity markets over a decade ago. Under this scheme, defaulting brokers will be able to settle outstanding dues by paying investors directly, thereby accelerating the restitution process.

The Indian jute industry, often referred to as the lifeline of rural Bengal and other eastern states, remains mired in systemic challenges despite its historical and economic importance. Union Textiles Minister Giriraj Singh, during the inauguration of the renovated Jute House at India Exchange Place in Kolkata, reaffirmed the government’s commitment to reviving the sector. Key concerns raised at the event included declining jute cultivation, uncontrolled imports from Bangladesh, and the lack of a robust grading system.

The Indian government has procured 3.92 lakh tonnes of tur (pigeon pea) as part of its Price Support Scheme (PSS) this year, aiming to stabilize domestic prices and support farmers. With a target of 13.22 lakh tonnes across nine states, the procurement is critical to maintain a buffer stock and ensure market stability. The government is also committed to ensuring 100% procurement of major pulses by 2028-29 to achieve self-sufficiency.

India’s commodity markets reflected a diverse pricing landscape on Tuesday, driven by seasonal shifts, inflationary pressures, and supply-demand dynamics. Prices across essential agricultural commodities—including grains, pulses, spices, and oils—exhibited a wide range of fluctuations. Staple items such as turmeric, chili, and gingelly oil continued to trade at elevated levels, indicating strong demand and limited supply. Meanwhile, more stable categories like wheat, sugar, and rice maintained moderate volatility.

The Gauhati Tea Auction Centre (GTAC) has reported a robust performance for the financial year 2024–25, registering both higher tea sales and a significant increase in average auction prices. Total volumes reached 169.13 million kilograms, with average prices climbing to Rs. 227.70 per kilogram—an impressive Rs. 44.50 per kilogram increase over the prior fiscal year. Bought Leaf Factories (BLFs), especially those in Assam’s Dhemaji district, also saw remarkable returns. With a turnover of approximately Rs.

India’s oilmeal exports experienced a significant contraction in the fiscal year 2024–25, falling by 21% in value terms to Rs. 12,171 crore. This decline was primarily driven by an 11% drop in export volumes, with reduced shipments of rapeseed and castorseed meals being the key contributors. Despite ongoing political uncertainty, Bangladesh remained India’s top oilmeal importer, followed by South Korea and Thailand.

The Solvent Extractors' Association (SEA) has urged the Indian government to lift the ongoing export ban on de-oiled rice bran, a critical byproduct used in animal feed production. Imposed in July 2023, and extended through September 2025, the ban has left the rice milling and oil industries struggling with surplus stock, particularly in states like West Bengal and Odisha. The SEA argues that allowing exports would ease the disposal of excess stock, support industry operations, and enhance India's competitive position in global markets.

The Indian Vegetable Oil Producers' Association (IVPA) has raised concerns over the sharp rise in duty-free edible oil imports from Nepal under the South Asian Free Trade Area (SAFTA) provisions. The imports surged significantly in the first quarter of 2025, prompting the IVPA to request government intervention. With fears of third-country routing through Nepal and the resulting market imbalances, the association has called on the government to restrict these imports to protect domestic processors and ensure fair competition.

India’s ethanol blending ambitions, particularly the 30% target by 2030, present a transformative economic and environmental opportunity—but one that remains underutilized due to key structural bottlenecks. A recent report by Primus Partners and the Grain Ethanol Manufacturers Association (GEMA) outlines actionable strategies to boost ethanol production through maize promotion, feedstock diversification, and robust policy frameworks. Rising maize prices and static ethanol procurement rates are eroding producer margins.

India, one of the world’s largest importers of vegetable oils, witnessed a sharp 16% decline in inbound shipments in March 2025, signaling a shift in consumption patterns and trade flows. Total imports fell to 9.98 lakh tonnes, primarily driven by a dramatic fall in crude sunflower oil purchases. According to the Solvent Extractors' Association of India (SEA), this contraction also reflects evolving sourcing strategies and a notable preference for soft oils over palm oil.