Financial Daily from THE HINDU group of publications
Friday, Apr 21, 2006
Financial Daily from THE HINDU group of publications Friday, Apr 21, 2006 |
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Agri-Biz & Commodities
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Wheat Industry & Economy - Exports & Imports Australian wheat set to arrive next week M.R. Subramani
Reality check Ship could take over 20 days to discharge wheat The entire 5 lakh tonnes may not be delivered before May-end Prices up in Hapur; futures contacts also rise
Chennai , April 20 The first consignment of wheat being imported duty-free from Australia will arrive at Chennai port on April 24, as per the port's traffic management schedule. Sources, however, said the ship, Furness Australia, carrying a little over 50,000 tonnes of wheat could arrive either on April 23 or 24, depending on weather conditions.
MOVE TO REIN IN PRICES
Wheat is being imported into the country after a gap of seven years. On February 2, the Centre decided to import wheat into southern ports of Mangalore, Visakhapatnam, Tuticorin, Chennai and Kochi to rein in rising prices of the foodgrain. The decision was also taken to tackle the problem of low buffer stocks, which had declined to 15 lakh tonnes as on March 30.
2 more shipments on way
According to the sources, two more consignments are heading towards Indian shores. While one consignment is headed for Tuticorin, the other will call on Visakhapatnam port. "The ship could call on these ports later next week or the week after," they said. The State Trading Corporation (STC) is handling the imports on behalf of the Centre and Australia's monopoly wheat marketing body AWB Ltd has won the tender to supply wheat at $178.75 a tonne c&f. The first consignment should have actually arrived by end of March. However, the schedule has been delayed due to a host of reasons.
ARRIVAL OF ENTIRE QUANTITY
Trade sources now doubt if the entire five lakh tonnes would arrive into the country before May-end as per initial plans. "It is unlikely that the entire quantity will be delivered as envisaged originally," they said. "Look, we have to be practical. Now, it will take over 20 days for Furness Australia to discharge the entire wheat at Chennai port. That means, it will be around May 15 when it will set sail to call at another port. The problem is that ports in the country have a low discharge rate," the sources said. Chennai's discharge rate of bulk freight is 2,500 tonnes a day, while at a port like Kochi, it is 2,000 tonnes a day.
AWB PROBLEMS
On the other side, the problem for AWB is that there are only three ports where methyl bromide can be used for fumigation before shipping the wheat. Methyl bromide is an odourless, colourless gas that has been used as a fumigant to control a wide variety of pests. However, its use has been curbed as it is seen as ozone-depleting. PRICES RISE Meanwhile, wheat prices have begun to climb up as farmers continue to hold back their stocks, looking for higher prices. On Thursday, wheat Dara in Hapur was quoted at Rs 805 a quintal, up from Rs 747.50 a week ago. In Delhi, it was quoted at Rs 770-772. On NCDEX, wheat for June delivery was quoted at Rs 910 a quintal and on MCX, it ruled at Rs 915.
More Stories on : Wheat | Exports & Imports
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