The spices and foodstuff exporters are disappointed and angry as their export competitiveness stands eroded due to the delisting of spices under the VKGUY (Visesh Krishi and Gram Upaj Yojana) scheme. Under this scheme, the exporters get some relief from customs duty on imports.

The spices exports have showed massive growth in the past but, now the spices have to face tough competition from other origins.

In the meantime, exporters have complained that the ones that most badly affected are the cumin seed, fennel seed and turmeric while China is competing with India in the cumin and fennel market besides Syria, Myanmar and Vietnam.

However, the Indian Spices and Foodstuff Exporters Association have insisted on the return of the VKGUY benefits, at least until March 2011.

This is so that exporters are able to fulfill their annual commitments and exports carry on unhampered by the unexpected pulling out of incentive.

Last month, the Director General of Foreign Trade had notified the withdrawal of VKGUY scheme with effect from April 1, 2010.

Founded at Mumbai in 1991, The Indian Spice & Foodstuff Exporters' Association (ISFEA) was formed out of pressing need to bring about a new front of Exporters' dealing in a variety of Agricultural Produce and Agri-related products, in the absence of a suitable forum to promote their common causes.

Due to a better trend at the physical markets on account of a surge in demand, the aluminium futures for October contract rose Rs 0.50, or 0.51 per cent, to Rs 98.15 per kg, with a turnover of 142 lots while the September contract gained Rs 0.45, or 0.47 per cent, to Rs 97.10 per kg, with a turnover of 2,927 lots at the Multi Commodity Exchange (MCX).

Moreover, the hopes that the global demand for metals may rise as China's manufacturing expanded at a faster pace in August also supported the prices of aluminium.

Aluminium is a silvery white member of the boron group of chemical elements. It has the symbol Al and its atomic number is 13. It is not soluble in water under normal circumstances.

While on the other hand, the potato futures for October contract lose grip as it fell by Rs 8.10, or 1.72 per cent, to Rs 463.20 per quintal as the speculators released their holdings tracking the increased supply in the physical market.

The potato for October contract fell to Rs 463.20 per quintal, with an open interest of 1,722 lots while the September contract also fell by Rs 4.80, or 1.10 per cent, to Rs 432.10 per quintal, with an open interest of 1,435 lots at the MCX.

The potato is a starchy, tuberous crop from the perennial Solanum tuberosum of the Solanaceae family (also known as the nightshades). The word potato may refer to the plant itself as well as the edible tuber. In the region of the Andes, there are some other closely related cultivated potato species.

Although the global cotton prices are at 2 year highs, the cotton traders will limit exports to 49.5 lakh bales and have also decided to follow the Cotton Advisory Board's (CAB) crop estimate for the coming season. The costs of raw material for textile companies were increased as the free exports in 2009-10 led to a sharp hike in local prices.

In the meantime, the new season commences in October and ends by September 2011 while the Southern India Mills Association (Sima) chairman J Thulasidharan said that about 70 lakh bales are likely to turn up in the initial 2 months of the new season.

CAB estimated 40.5 lakh bales of opening stock while 325 lakh bales of production, import of 5 lakh bales, export of 49.5 lakh bales and a closing stock of 55 lakh bales for the 2010-11 seasons.

Cotton is a soft, fluffy staple fiber that grows in a boll around the seeds of the cotton plant. The plant is a shrub native to tropical and subtropical regions around the world, including the Americas, Africa, India and Pakistan. The fiber most often is spun into yarn or thread and used to make a soft, breathable textile, which is the most widely, used natural-fiber cloth in clothing.

India's President, Ms Pratibha Patil said that cost-effective technologies in the micro, small and medium enterprises (MSME) sector need to be introduced. Thus, the President called for combined efforts in the coir industry that employs about 5.5 lakh persons.

She added that the primary areas of focus for a stronger growth of the sector should be technology, marketing, credit and skill development while the MSMEs from the traditional sector are not cost-effective, thus making their products weak to competition from other sectors.

In order to make R&D technologically capable to meet domestic and overseas competition, focused attentions had to be given to R&D to evolve modern production infrastructure.

Meanwhile, MSMEs account for about 45 per cent of the manufacturing output of India, 95 per cent of the industrial units and 40 per cent of exports.

Yesterday, the coir industry awards for 2009-2010 was given away by Ms Prathibha Patil, at a function that was held at Vigyan Bhavan and the function was also presided over by the Union Minister of State for Micro, Small and Medium Enterprises (MSME), Mr Dinsha J. Patel.

The categories for the awards included export performance, largest exporter and the best exporter among medium and micro scale industries and a total of 19 awards were presented totally.

Agri-cooperative, Nafed said that the rise in the Minimum Export Price (MEP) of onion will reduce the export, thereby increasing domestic supply. Thus, the government hiked the MEP of onion by $55 to an average of $275 a tonne for September after 3 months.

The government had kept the MEP unaffected at Rs 220 a tonne between June-August while the MEP was hiked as a result of a steep rise in prices of export-quality onion by Rs 200 per quintal in last 1 month.

In the meantime, against Rs 600-700 per quintal in the previous month, the prices of export-quality onion are high at Rs 800-900 per quintal whereas the country exported 10.43 lakh tonnes of onions, worth Rs 1,141 crore in H1 of the current year.

Nafed and 13 other agencies are involved in onion export and it decides the MEP every month while all the export contracts are registered with the Nafed.

India exported 11.61 lakh tonnes of onions during 2006-07 which is a record quantity after the export was canalized through NAFED. Big onions having, light red to dark red coloured bulbs are grown in most of the parts. Small onions, known as rose onion, and Krishnapuram onions are grown in Kolar district in Karnataka and Cudappah district in Andhra Pradesh.

Big onions produced in Maharastra, Gujrat, Karnataka and Tamil Nadu are exported from Mumbai, Chennai , Tuticorin, Kandla and Kolkata ports to Dubai , Kuwait, Saudi Arabia, Middle East, Malaysia, Singapore, Seychelles and Bangladesh.

Small onions produced in Karnataka and Andhra Pradesh are exported from Chennai port to Singapore and Malaysia, and multiplier onions to Singapore, Malaysia,Sri Lanka etc. Maharashtra has maximum share in onion export.

The investors opted to go for clearing their pending positions in the Gaurseed contracts tracking the favoring trend in the spot markets, which results in the increase in the Guarseed prices by Rs 32, or 1.58 per cent, to Rs 2,059 per quintal.

The guarseed for the December contract improved by Rs 32, or 1.58 per cent, to Rs 2,059 per quintal, with an open interest of 3,330 lots while the September contract rose by Rs 15, or 0.75 per cent, to Rs 2,003 per quintal, with an open interest of 1,46,080 lots at the National Commodity and Derivatives Exchange (NCDEX).

Similarly, there was increased buying by speculators in sync with restricted arrivals in physical markets as a result of which the prices of gur rose by Rs 11.40, or 1.10 per cent, to Rs 1,047.60 per 100 kg.

The gur delivery for September contract hardened by Rs 11.40, or 1.10 per cent, to Rs 1,047.60 per quintal, with an open interest of 20,660 lots while the November contract also went up by Rs 6.40, or 0.73 per cent, to Rs 882.60 per quintal, with an open interest of 6,190 lots at the NCDEX.

Moreover, the rise in the prices of gur was also supported by the less supply in spot markets due to rainfall against better demand.

Due to the rise in domestic and export demand of mentha oil at the spot markets, fresh positions were created by speculators, which resulted in the recovery of mentha oil prices for November contract by Rs 13, or 1.65 per cent, to Rs 799 per kg, with an open interest of 10 lots.

The mentha oil for the September contract gained Rs 2, or 0.26 per cent, to Rs 776 per kg, with an open interest of 6,988 lots at the Multi Commodity Exchange (MCX).

Moreover, the restricted supply from Chandausi in Uttar Pradesh also influenced the prices of mentha oil.

While, the crude palm oil futures faces selling pressures due to the decline in the global trend of crude palm oil at the spot markets. In view of this, the speculators released their holding as a result of which the crude palm oil prices for the November contract fell by Rs 6.10, or 1.53 per cent, to Rs 393.40 per 10 kg with an open interest of 46 lots.

The crude palm oil for the September contract also lost Rs 4.30, or 1.05 per cent, to Rs 405.70 per 10 kg, with an open interest of 2,674 lots at the MCX.

Moreover, the slow demand in the spot market also led to a fall in crude palm oil prices whereas the palm oil futures for November delivery lost 2 per cent to $803 a metric tonne on the Malaysia Derivatives Exchange (MDE).

The nickel futures firms up during the trading session due to the more demand of the metal from the alloy makers as well as influenced by the firming global trends. The nickel for October contract traded Rs 15, or 1.52 per cent, higher at Rs 1,003.50 per kg, with a turnover of 677 lots while the September contract also gained Rs 14.80, or 1.48 per cent, to Rs 995 per kg, with a turnover of 12,052 lots at the Multi Commodity Exchange (MCX).

Moreover, the hopes that the global demand for metals may rise as China's manufacturing expanded at a faster pace in August also supported the prices of nickel.

Similarly, the Zinc futures surged by Rs 1.25, or 1.28 per cent, to Rs 98.60 per kg due to the surge in demand at the spot markets.

The zinc in September contract traded Rs 1.25, or 1.28 per cent, higher at Rs 98.60 per kg, with a turnover of 4,221 lots while the October contract also gained Rs 1.15, or 1.17 per cent, at Rs 99.50 per kg, with a turnover of 380 lots at the MCX.

Moreover, the hopes that the global demand for metals may rise as China's manufacturing expanded at a faster pace in August also supported the prices of nickel.