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G. Chandrashekhar

Mumbai, Sept. 4 From July this year, wheat exports from Australia have been substantially liberalised with corporates and cooperatives allowed to export in bulk, subject to certain regulatory guidelines. Induction of new suppliers effectively ends the monopoly of AWB Ltd, previously Australian Wheat Board.

Addressing a group of traders here on Thursday on Australia’s new wheat marketing arrangements, Mr Russel Phillips, General Manager (Crops and Productivity) at the Department of Agriculture, Fisheries and Forestry, said the new legislation, that came into effect on July 1, 2008 will result in significant differences in the way Australian wheat is sold.

Buyers will have a choice of suppliers but Australia will continue to impose standards to ensure wheat exported is of a high quality and is consistent with importing countries’ requirements, he asserted.

While wheat export in bulk is regulated and is currently restricted to eligible corporates and cooperatives, export in containers is deregulated and free.

Only accredited entities will be allowed to export wheat in bulk. Five exporters who have met stringent norms have already been accredited by the regulator Wheat Exports Australia.

Interestingly, foreign ownership of accredited wheat exporting corporates is permitted. Among the 17 criteria laid down for accreditation are financial performance, business track-record, risk management strategies, compliance history and so on.

Buyers of Australian wheat can now approach growers to cultivate customised varieties and enter into long-term supply arrangements, Mr Phillips pointed out. The new marketing arrangements will be reviewed by 2010.

Referring to the outlook for the next Australian wheat crop due by October, the expert said that cultivated area has expanded by 13 per cent to 14 million hectares as a result of high prices. Anticipating better yields than in the last two years, production is currently estimated at about 23.7 million tonnes.

Later, Mr Phillips told Business Line that Australia would be keen to service the Indian market. The strategy would include exploiting niche markets such as those for specialised varieties like durum and trying to penetrate southern parts of India given the logistics advantage.

More Stories on : Wheat | Exports & Imports

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