1

Fundamental analysis
of
barley
Presented by:
Pooja Rathod
(04-2535-2014)
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Introduction
• Barley (Hordeum vulgare L), a cereal grain derived from
an annual grass is the fourth most important cereal crop
in the world after rice, wheat and maize
• The crop resembles white berries and is believed to be an
excellent crop for the drought like conditions. Barley along
with corn/maize, sorghum (jowar), oats, pearl millet
(bajra), finger millet (ragi) and other minor millets are
grouped together as coarse cereals.
• The grass has few leaves, densely spiked and flowered,
and gains a height of 60 to 120cm when it gets matured
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Contd…
• It is considered as one of the most drought tolerant and
salt tolerant crop. But for effective yields, it needs
appropriate irrigation and rich fertile soil.
• In India, the sowing period of parley is around October
and November that makes it a rabi crop. The harvesting
period is around March and April.
• The grain is obtained through a process, threshing, by
beating it up with sticks and the barley plants are fed to
the animals
• Barley is used as livestock feed, human food and barley
malt. Currently food and industrial consumption of barley
is more prominent. Other than playing its part as a major
food crop, it is also used in beverages and beers
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Global and Indian scenario

• Global:
o European Union, Russia, Ukraine, Canada, Australia,
Turkey and USA are the major producers of barley
accounting for around 75% of the total global production
o The major importing nation is Saudi Arabia which
imports barley mainly for feed, Japan and China import
it for both feed and malt production
o Following corn, barley is the second largest coarse
cereal traded globally. The global trade in barley is
reported to be around 17-18 million tonnes
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Contd…
• Indian:
o The area under cultivation of barley has stabilized at
around 0.7-0.8 lakh hectares, with a per hectare yield of
around 1944 kg.
o The major producers of Barley in the country are
Rajasthan (40%), Uttar Pradesh (34%), Madhya
Pradesh (8%), Haryana (6%) and Punjab (5%). Some
cultivation is also undertaken in Bihar, Himachal
Pradesh, and Uttaranchal.
o Annual demand from beer and feed industry is
estimated to be around 60,000 tonnes and 25,000
tonnes respectively
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Production and consumption

Sr. No Production Consumption
Country Million MT Country MT
1 Russia 16.7 EU 52500000
2 Canada 12.1 Russia 15500000
3 Germany 11.7 Canada 10800000
4 France 10.4 Turkey 7300000
5 Ukraine 9.3 Saudi Arabia 6210000
6 Turkey 9.0 China 5450000
7 Australia 6.6 Ukraine 4900000
8 UK 5.5 US 4758000
9 US 4.6 Iran 3900000
10 Spain 4.4 Australia 3700000

Source: www.crnindia.com (2005)

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Major exporter and importer

Sr. no. Export Import
Country Quantity (MT) Country Quantity (MT)
1 Australia 4941357 China 5413279
2 France 4408401 Belgium 1724020
3 Canada 1528565 Netherlands 1893450
4 Argentine 1116472 Japan 1241258
5 UK 977803 Germany 1197908
6 Germany 868518 Jordan 938313
7 Ukraine 799754 Algeria 770222
8 Denmark 632679 Turkey 675994
9 Russia 732549 Italy 641639
10 Romania 571809 US 522269

Source: APEDA,2014
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Major trading centres

• The major trading centres of barley in the world are

1. Winnipeg Commodity Exchange (Canada)
2. Sofia Commodity Exchange (Bulgaria)

• Major Indian Trading Centres: The major markets are

located in Rajasthan and Madhya Pradesh. The three
largest markets are Kota, Ramganj Mandi and Baran in
Rajasthan
 Indian Rs. per metric ton

10,000.00
12,000.00
14,000.00
16,000.00

0.00
2,000.00
4,000.00
6,000.00
8,000.00
Nov-05
Apr-06
Sep-06
Feb-07
Jul-07
Dec-07
May-08
Oct-08
Price analysis

Mar-09
Aug-09
Jan-10
Jun-10
Nov-10
Apr-11
Sep-11
Feb-12
Jul-12
Dec-12
May-13
Oct-13
Mar-14
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Aug-14
Jan-15
Jun-15
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Price affecting factors

• Weather conditions
• The price of other coarse cereals influences the demand from
the feed sector and in-turn influences barley prices
• Easier proximity to Middle-east countries has increased the
export demand. The amount of exports undertaken influences
prices significantly. It was the high export in 2007-8 and 2008-9
that resulted in the prices of Barley zooming to the high in
March 2008
• The reports of rising beer consumption in India is leading to
major global barley / barley malt producers eyeing India as a
probable buyer in the coming years. Currently, India does not
import barley. Picking up of imports can alter the current Indian
supply-demand dynamics and become a major price
influencing factor
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References
1. http://www.crnindia.com/commodity/barley.html
2. http://www.mcxindia.com/SitePages/ContractSpecification.aspx?ProductCode=
BARLEY
3. http://www.mcxindia.com/Uploads/Products/251/English_Barley_Leaflet.pdf
4. http://www.indexmundi.com/commodities/?commodity=barley&months=120&cu
rrency=inr
5. http://agriexchange.apeda.gov.in/ProductSearch/Major_Imporing_Countries.as
px?mi=major_imp&hscode=6a%2bynF9I77olvb5jLBHNhOtEJltjhGdRahcWRpp
%2fJDuwA1CnKJb9gixjn%2fgB01sIApNWVN0zt1Q%3d&hscode1=6a%2bynF9
I77qOMvtqiB7bpONHrnTuXaiZKtI%2fgp6petWlaAveHsdsdNmvIGoWorwE96Q
VOS7%2f4dQ%3d
6. http://www.uticaod.com/article/20110727/News/307279900
7. http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-
information/by-product-sector/crops/crops-market-information-canadian-
industry/market-outlook-report/barley-outlook-for-2009-2010-november-
2009/?id=1378841271200
8. http://www.ft.com/cms/s/0/c66a4670-00de-11e2-99d3-
00144feabdc0.html#axzz3t9GPI088
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THANK YOU