Thinner arrivals of new poppy seeds at Mandesaur and Neemuch markets indicate lesser output year-on-year. According to estimates, output would be down by around 30 per cent because of rains that deteriorated quality of the produce, said trade sources.The arrivals are expected to narrow down in the next fortnight as stocks of the indigenous crop are negligible. The demand will pick up from next month when the ‘ masala season' starts, market sources told Business Line . According to them, farmers would not sell if the prices did not meet their expectations.

India annually requires 34,000-38,000 tonnes of poppy, against around 15,000 tonnes produced domestically. Only those who get licences from the Narcotics Control Board are allowed to cultivate poppy. In 2011, licences were issued for 25,350 hectares. Of this, 17,240 hectares were used, official sources said. Output was estimated at 13,800 tonnes with an average yield of 800 kg a hectare, they said.

The marketable quantity of white poppy seeds available, after leaving out the damaged lot, stood at 11,990 tonnes, they said. In 2010, it was at 15,135 tonnes.

Now, the current market prices are between Rs 180 and Rs 275 a kg, depending upon the quality of the material. Quality produce is fetching Rs 220-230 a kg, they claimed. The poppy seeds growers' association in Mandesaur has reportedly urged the board and the Union Finance Minister to issue import permits only after three months, as the current crop harvesting is underway.

Trade associations in Mumbai and Kolkata have also urged the board to register import contracts directly from exporters, and not via agents or indentors. This step, they claimed, “is to curb undervaluation, mis-declaration and most importantly to source pure Turkish white poppy seeds.” There have been cases of adulterated low-grade Pakistani and Afghani poppy seeds entering India through Turkey, they alleged.

“Imports from other origins are directly from exporters and the same discipline is needed for imports from Turkey too,” they demanded. They said new import permits for new contracts were issued every year after thorough verification by the board by May or June. Thus, there might not be any imports until new permits are issued. In the absence of imports during these months, Indian poppy seeds are likely to fetch good prices, they said.

There have been no imports from China this year as the crop has failed there. It will also aggravate the tight supplies and push up prices, they said.

Turkish poppy seeds price is at $3,000, and the new crop will come only in September, they said. It would depend on the weather. However, the crop size will be known in June/July, they said. The market was dull because of the financial-year closing and the cricket World Cup to boot, they said.

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