PDS may get another 1 MT imported wheat
The Centre may import another 1 million tonnes of wheat for ration shops. But the move is unlikely to please consumers as only red wheat from Russia is available in the global market at present, while they prefer white wheat.
By Nidhi Nath Srinivas, TNN |
NEW DELHI: The Centre may import another 1 million tonnes of wheat for ration shops. But the move is unlikely to please consumers as only red wheat from Russia is available in the global market at present, while they prefer white wheat.
Therefore, the government may be hardpressed to simultaneously meet the twin pressures of price and consumer satisfaction. India cannot shop for white wheat immediately because out of the two major suppliers, Australia has no crop to export while US has been barred by Indian phytosanitary rules.
Though global wheat prices have shown some correction due to heavy fund activity, actual availability of grain has become tighter as Pakistan and Turkey enter the arena as buyers. But to speed up the process, instead of allowing only STC to buy on behalf of Food Corporation of India, this time all three parastatals, STC, MMTC and PEC, may be asked to float tenders in the world market.
The government has already contracted 1.3 million tonnes (MT) of wheat for import. The PSUs are likely to float their tenders in a staggered manner to avoid any clash among suppliers. The tenders may stipulate that wheat must get shipped in between January and March next year.
India’s fresh import demand is expected to further push up an already tight global market as only wheat from Russia is currently for sale. Pakistan has just bought wheat at $455/t, Kuwait at $435/t, while Egypt’s state procurement company bought wheat from domestic suppliers at $396/t C&F.
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“The global situation is still very tight and foreign traders may find it tough to offer India an extra 1 million tonnes,’’ said an industry watcher. Australia’s decimated harvest of only 12.1 MT has now been confirmed by the government’s Australian Bureau of Agricultural and Resource Economics.Wheat futures on the Chicago Board of Trade fell 1.5% on Tuesday, reversing from strong gains the previous day on the back of export rumours and soaring crude oil prices. Traders here said it was more due to profit booking and some necessary correction.
“All the fundamentals have been factored into the market and all the players are already there. So it would need some sudden new developments for the market to move up sharply,’’ said a trader here. “Funds overseas are moving away from wheat to soya because they see greater upside there," said a trader here.
According to an industry watcher, the government is wise to explore the possibility of more exports because the next year’s crop has yet to be sown. “Though there is hype of a good crop next year due to the hike in MSP, it remains to be seen whether it would actually translate into higher numbers. Weather will, as usual, be the joker in the pack,’’ he said.
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