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Commodity

News

Basmati exporters reap high profits

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asmati exporters' profits have surged for the June quarter over the corresponding period last year on higher shipments and prices. Almost all large players saw a significant growth in their topline mainly due to robust demand from traditional markets in West Asia and also aided by a weaker rupee. The profits of KRBL Ltd, the country’s largest basmati exporter, more than doubled to Rs 56.60 crore for the June quarter on higher overseas demand. Another large exporter, LT Foods Ltd, also saw profits double to Rs 7.72 crore. But, Kohinoor Foods' profits dipped by a fourth on account of higher finance costs and other expenses. “Our profits could have been higher, but for the forex

losses of Rs 16.95 crore,” said Anil Mittal, Chairman and Managing Director of “The price of basmati is $1,000-1,500 a tonne for different varieties this year, while last year it was close to $800-900 a tonne,” said Vijay Arora, Chairman and Managing Director, LT Foods Ltd. “Iran is coming up as a big importer and we are now scouting for new markets in the world. We have also signed up few distribution partnerships in Africa, which will further increase our sales in international markets,” Arora said in a statement. The country’s basmati shipments in 2011-12 surged 45 per cent to touch a record 3.21 million tonnes against 2.18 mt in the previous year. In value terms, the exports for fiscal 2012 were up 46 per cent at Rs 15,450 crore against Rs 9,600 crore.

The Government’s recent move to scrap minimum export price, resumption of direct shipments to Iran — the largest market — and China’s decision to import Indian basmati could further accelerate the export of the aromatic rice. Iran, Saudi Arabia and the United Arab Emirates were the large three markets for the Indian basmati during 2011-12.

Govt plans to release 60 lakh tonnes wheat

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uch to the respite of millers and food manufacturers facing wheat crunch, the government is planning to release 60 lakh tonne wheat in the open market this financial year. The government’s godowns are overflowing with grains due to a record carry-forward stock of 20 million tonne and further procurement of 38 million tonne. We will start with releasing 10 lakh tonne next month. Commission for Agricultural Costs and Prices (CACP) has recommended offloading 10 million tonne wheat from the government’s godowns this year, said a senior food ministry official.

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The government had earlier decided to sell 3 million tonne of wheat in open market in this financial year. The move is likely to ease the supply pressure. Spot wheat prices have risen by 15% over a week to Rs 1,700 a quintal in most of the markets. Traders are diverting stocks for export as the international prices have moved to $311-$ 325 a tonne on drought in US and Russia Millers are to be blamed for the price rise. They refrain from purchasing wheat during the procurement season thinking they will get it cheaper after the government stops buying. Now traders and farmers are holding stocks creating scarcity which is jacking the prices, the official said. He said that the government has so far released 13 lakh tonne of wheat in open market which is much more than the last year when the millers lifted only 12 lakh tonne out of the allocated 15 lakh tonne

AgriBusiness & Food Industry w October 2012

for the year. Allocations should not be based on the past year lifting. Last year the wheat was easily and freely available in the producing states as there was no export option available, said Naresh Ghai, president, Punjab Roller Flour Mills Association. The millers are blaming the government for not releasing sufficient quantity in the market despite sitting on huge wheat stock. They say that high prices of wheat may spike prices of flour and other wheat products like bread, biscuits, maida etc. The government should immediately release wheat for cooling of the prices. We are getting wheat at higher prices due to shortage which will further push food inflation, Ghai said. Millers are also demanding to stop private traders from participating in the tender, which Food Corporation of India invites for selling wheat in the open market. Private traders corner maximum quantity quoting higher prices to ship the grain outside the country. We are being left high and dry, said Ram Chander Singhal, president, UP Roller Flour Millers Association. The food ministry however says that the participation of private traders have eased subsidy burden.

AGRI BUSINESS & FOOD INDUSTRY  

India's only monthly magazine having maximum presence in National & International Exhibitions. Regular topics cover the food processing sect...

AGRI BUSINESS & FOOD INDUSTRY  

India's only monthly magazine having maximum presence in National & International Exhibitions. Regular topics cover the food processing sect...

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