The Hindu Business Line : Mills can have custom grown wheat from Down Under

Chennai, Oct. 7 With Australia ending the monopoly of AWB Ltd from July 1 this year, Indian roller flour mills can now custom grow wheat in Australia.

This means, any producer of wheat products here can approach an Australian farmer and have wheat grown to the speficiation of their manufacturing unit.

“Indian importers can specifically have wheat grown by Australian farmers according to their needs. They can even enter into contract farming, grow it in Australia and get it to India. The contracts can even be long-term ones,” said Mr Rusell Phillips, General Manager (Crops and Productivity) at the Department of Agriculture, Fisheries and Forestry. Mr Phillips told Business Line recently on a trip here to explain to Indian user industries the new wheat marketing arrangements.

“A lot of opportunities are now available to buyers of Australian wheat, even to secure long-term supply. We hope Indian buyers will take advantage of it,” Mr Phillips said.

Though Australia doesn’t see Indian importing much wheat in the immediate future given its record production this year and ample stocks, it expects New Delhi to be a net importer in the longer term.

During 2006 and 2007, India was the major importer of Australian wheat. Over 80 lakh tonnes of wheat arrived in the country during the period as lower production and lower buffer stocks forced the country import the grain.

BULK EXPORTS

Under the new regime, wheat exports in container has been totally deregulated. On the other hand, bulk exports of wheat will be allowed subject to new rules administered by the nominated agency, Wheat Exports Australia.

“Bulk wheat exports are no longer limited to AWB, which enjoyed a monopoly for nearly nine years. The new system ensures more flexibility and responsiveness from suppliers,” Mr Phillips said.

Under the new system, Australia now allows bulk exports only by firms that are thought to be “fit and proper”. Wheat Exports Australia will try and assess those wanting to export wheat if they have the capability to export. After assessment, these firms will be given accredition for exports.

So far, over a dozen firms such as Cargill, Ozepulse, Goodman Fielder, have got the accreditation. “It takes 6-8 weeks for Wheat Exports Australia to assess a firm. The authority examines the financial resources, business record and risk strategy management to allow them in bulk exports,” he said.

Asked if any Indian company had shown interest in bulk exports of Australian wheat, he said: “No one. Not to my knowledge.”

LOGISTICAL ADVANTAGE

South India flour mills, in particular, prefer Australian wheat not only for its quality but also due to logistical advantage.

“Australia prefers the new system because it gives growers greater assurance on payment. Also, growers can also now sell their wheat on the commodity exchanges. Buyers can also take part in the exchange’s trading,” he said.

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