Barley is a cereal grain derived from the annual grass Hordeum vulgare. This widely adaptable crop is popular in temperate areas where it is grown as a summer crop and tropical areas where it is sown as a winter crop . In India, it is grown in rabi season. This cereal has many uses. It serves as a major animal fodder, as a base malt for beer and certain distilled beverages, and as a component of various health foods. It is used in soups and stews, and in barley bread of various cultures.
NCDEX Barley Future
Barley futures are trading at NCDEX since December 2006. NCDEX Barley futures are an ideal tool for price risk management for the producers as well as processing (malt and processed food) and export industry. Also, the market participants can benefit by taking position based on directional view on future prices, cash and carry arbitrage and calendar spread.
Scenario
Barley production in India is estimated 23 percent lower at 13 lakh tonnes in 2009-10 compared to 16.9 lakh tonnes last year, according to the fourth advance estimates. The new crop arrivals are expected in March-April 2011 after the rabi crop harvest. Moreover, production of Barley in top producing countries indicates a decline in 2010/11 compared to last year, according to the latest USDA estimates. Consumption demand for Barley in India mainly comes for malt, poultry and animal feed. Barley malt is majorly used for the production of alcoholic beverages in the country. China, Vietnam and India recorded strong annual increases in beer production in 2009—7.0%, 24.3% and 12.3%, respectively—and drove the growth in overall beer production in Asia, where the annual growth rate of 5.5% was larger than those of other regions in 2009. Asia increased its production share in the global market by 1.6 percentage points and became the largest beer-producing region in the world, ahead of Europe, which had held that position since 1974.
Future Prospects
Consumption demand for the cereal grain is expected to be higher given the increased demand from malt industry, poultry and animal feed, new food products of mixed grains (foodles, magi etc.), flour etc. The wider usage of the cereal in industries, feed and food support its demand in the country.
Factor Influencing Prices
NCDEX Barley Future
Barley futures are trading at NCDEX since December 2006. NCDEX Barley futures are an ideal tool for price risk management for the producers as well as processing (malt and processed food) and export industry. Also, the market participants can benefit by taking position based on directional view on future prices, cash and carry arbitrage and calendar spread.
Scenario
Barley production in India is estimated 23 percent lower at 13 lakh tonnes in 2009-10 compared to 16.9 lakh tonnes last year, according to the fourth advance estimates. The new crop arrivals are expected in March-April 2011 after the rabi crop harvest. Moreover, production of Barley in top producing countries indicates a decline in 2010/11 compared to last year, according to the latest USDA estimates. Consumption demand for Barley in India mainly comes for malt, poultry and animal feed. Barley malt is majorly used for the production of alcoholic beverages in the country. China, Vietnam and India recorded strong annual increases in beer production in 2009—7.0%, 24.3% and 12.3%, respectively—and drove the growth in overall beer production in Asia, where the annual growth rate of 5.5% was larger than those of other regions in 2009. Asia increased its production share in the global market by 1.6 percentage points and became the largest beer-producing region in the world, ahead of Europe, which had held that position since 1974.
Future Prospects
Consumption demand for the cereal grain is expected to be higher given the increased demand from malt industry, poultry and animal feed, new food products of mixed grains (foodles, magi etc.), flour etc. The wider usage of the cereal in industries, feed and food support its demand in the country.
Factor Influencing Prices
- Seasonal fluctuations in area sown, production and productivity
- Domestic and export demand
- Arrivals in the market and supply situation in different consuming and producing centres
- Price received by farmers for other competing crops
- Global production, stocks and supply
- Usage of cereal in different food products, value added products and a number of industries
- Other coarse grains supply and prices
- International price parity
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