In a world of surplus wheat, the biggest importer Egypt has been negotiating prices and getting huge discount offers, but India, the second largest producer in the wor?ld, is nowhere on the scene.
Policymakers in India refrain from playing an active role in the world commodity trade fearing corruption ch?a?rges. “The Indian government just stops at removing curbs on imports, including scrapping of import duty, but Egypt has been pro-active to garner the cheapest ra?tes,” a flour miller from Ka?r?nataka said. The officials never involve themselves in negotiation except when the government imports, he added.
India is offered Ukrainian wheat at Rs 16,500 a tonne and the Australian variety at Rs 18,100 a tonne for the Tu?ticorin delivery. Though, the freight cost from Ukrai?ne and Russia to India is more, still Egypt has got it cheaper, he said.
The government on September 23 reduced import duty to 10 per cent from 25 per cent to boost supplies and again on December 8 scrapped the duty as wheat prices rose across the country. The private traders and flour millers have imported 1.7 million tonnes of wheat so far, and have contracted one million tonnes more, industry sources said.
According to a report, Egypt bought 235,000 ton?nes of wheat in a tender on December 29 by paying 82 cents a tonne less than the lowest offer it received. Tra?d?ers had boycotted tenders in September after officials changed regulations on qua?rantine. Earlier in the Dec?ember 20 tender, Egypt paid $1.73 a tonne less for wheat.
With big rise in production, exporters in Russia and the US are scrambling to offload their stock. While they need a buyer to sell, Egypt is bargaining hard to pay less amidst bumper output.
According to the International Grains Council estimates, global wheat stockpiles may reach a record 235 million tonnes at the end of 2016-17 season (October-September), which is six per cent above the last year. Glo?bally, wheat prices in benchmark Chicago Board of Tra?de fell 14 per cent in 2016. The rates in August had dip to the 10-year lows.
Egypt buys more than any other country as the Cairo government runs a programme providing food to its over 90 million population.
A government agency in Egypt had finalised deal to buy 60,000 tonnes of wheat from Ukraine at $197.20 a to?nne, which is 63 cents bel?ow the offer. It also bought 175,000 tonnes of Russian wheat at $197.35 a tonne and $197.95 a tonne. Glencore had agreed to sell at $1.45 a tonne lower than its own offer after Cairo negotiated the deal.
Meanwhile, wheat prices in commodity exchange NCDEX fell by 0.48 per cent to Rs 1,875 per quintal on Monday. The fall is attributed to muted demand from flour millers in the southern region who are buying from Ukraine, Russia and Australia due to cheaper rates.
prabhudatta.m@mydigitalfc.com
Policymakers in India refrain from playing an active role in the world commodity trade fearing corruption ch?a?rges. “The Indian government just stops at removing curbs on imports, including scrapping of import duty, but Egypt has been pro-active to garner the cheapest ra?tes,” a flour miller from Ka?r?nataka said. The officials never involve themselves in negotiation except when the government imports, he added.
India is offered Ukrainian wheat at Rs 16,500 a tonne and the Australian variety at Rs 18,100 a tonne for the Tu?ticorin delivery. Though, the freight cost from Ukrai?ne and Russia to India is more, still Egypt has got it cheaper, he said.
The government on September 23 reduced import duty to 10 per cent from 25 per cent to boost supplies and again on December 8 scrapped the duty as wheat prices rose across the country. The private traders and flour millers have imported 1.7 million tonnes of wheat so far, and have contracted one million tonnes more, industry sources said.
According to a report, Egypt bought 235,000 ton?nes of wheat in a tender on December 29 by paying 82 cents a tonne less than the lowest offer it received. Tra?d?ers had boycotted tenders in September after officials changed regulations on qua?rantine. Earlier in the Dec?ember 20 tender, Egypt paid $1.73 a tonne less for wheat.
With big rise in production, exporters in Russia and the US are scrambling to offload their stock. While they need a buyer to sell, Egypt is bargaining hard to pay less amidst bumper output.
According to the International Grains Council estimates, global wheat stockpiles may reach a record 235 million tonnes at the end of 2016-17 season (October-September), which is six per cent above the last year. Glo?bally, wheat prices in benchmark Chicago Board of Tra?de fell 14 per cent in 2016. The rates in August had dip to the 10-year lows.
Egypt buys more than any other country as the Cairo government runs a programme providing food to its over 90 million population.
A government agency in Egypt had finalised deal to buy 60,000 tonnes of wheat from Ukraine at $197.20 a to?nne, which is 63 cents bel?ow the offer. It also bought 175,000 tonnes of Russian wheat at $197.35 a tonne and $197.95 a tonne. Glencore had agreed to sell at $1.45 a tonne lower than its own offer after Cairo negotiated the deal.
Meanwhile, wheat prices in commodity exchange NCDEX fell by 0.48 per cent to Rs 1,875 per quintal on Monday. The fall is attributed to muted demand from flour millers in the southern region who are buying from Ukraine, Russia and Australia due to cheaper rates.
prabhudatta.m@mydigitalfc.com
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