So, what's going on with INDIAN NLS FCV 2022 ??
First off, NLS isn't a short crop this season like the rest of the varieties thanks to the fixed hectarage of palm oil under cultivation which limits the farmer to go with the second best alternative i.e. tobacco.
Regardless of High or Medium grades i.e., (L1 - L5), (C1-C3) & (X1 & X2), the sale price at the auctions is fixed at Rs. 230/kg ($2.9/kg) which was Rs. 195/kg ($2.46/kg) just a few weeks ago.
The farmers tend to sell off the low and medium grades first while holding on to the high grades hoping for further price hikes. That strategy seems to have worked quite well this time. But that is certainly not a favorable situation for a buyer with already committed orders at hand.
Irrespective to the significant price fluctuation, KKME was still able to fulfill and execute orders at committed rates even when it gets close to financially unfeasible situation.
Because, end of the day CREDIBILITY is all that matters.
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