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World wheat market waits to be tapped, but India falters
New Delhi, Sept 10: India`s global competitiveness and its large wheat stocks - which many countries are prepared to buy - have failed to make any large impact on the global trade in the last few months, all due to shortage of rail-rakes.
New Delhi, Sept 10: India's global competitiveness and its large wheat stocks - which many countries are prepared to buy - have failed to make any large impact on the global trade in the last few months, all due to shortage of rail-rakes.
With government not making any fresh allocations of wheat to traders, India's presence in the world market is only in the form of TOCs (transfer of contracts) with old buyers being substituted with new ones at a revised price for the same quantities.
"It is a case of sheer irony. There is no dearth of buyers, world supply scenario is tight, Indian wheat is highly competitive, stocks with the government are ample; yet we are unable to export", independent grains analyst Om Prakash Chopra told a news agency from Patiala. Even at remunerative rates of 143 dollars a tonne, free on board (FoB), India is quite competitive vis-a-vis France, UK and Canada but traders cannot enter into new contracts in absence of rail-rakes for delivery from godowns to port, an MNC trading house official added.
Managing director, Food Corporation of India, V K Malhotra, said fresh allocations to traders for export are unlikely before December when commitments for grains transport to meet the requirement of ration shops is expected to ease.
The MNC official said Australian crop is expected only in December and that too at a price of around 165 dollars a tonne. The US soft red winter wheat is also quoting upwards of 150 dollars a tonne fob. Having made in the world market, Indian what is now fetching around 144 dollars a tonne, the highest so far. Bureau Report
"It is a case of sheer irony. There is no dearth of buyers, world supply scenario is tight, Indian wheat is highly competitive, stocks with the government are ample; yet we are unable to export", independent grains analyst Om Prakash Chopra told a news agency from Patiala. Even at remunerative rates of 143 dollars a tonne, free on board (FoB), India is quite competitive vis-a-vis France, UK and Canada but traders cannot enter into new contracts in absence of rail-rakes for delivery from godowns to port, an MNC trading house official added.
Managing director, Food Corporation of India, V K Malhotra, said fresh allocations to traders for export are unlikely before December when commitments for grains transport to meet the requirement of ration shops is expected to ease.
The MNC official said Australian crop is expected only in December and that too at a price of around 165 dollars a tonne. The US soft red winter wheat is also quoting upwards of 150 dollars a tonne fob. Having made in the world market, Indian what is now fetching around 144 dollars a tonne, the highest so far. Bureau Report