Govt Will Import 1.5 Million Tons Pulses

NEW DELHI: The government has decided to import 1.5 million tons of pulses in 2008-09 fiscal through public sector trading agencies, a move aimed at increasing the domestic availability and curb rising prices of the commodity.

"We will import 1.5 million tons of pulses during this fiscal through STC, MMTC, Nafed and PEC," a top government official said.

In last fiscal also, the government had announced that it would import 1.5 million tons of pulses and offered 15 per cent subsidy to these agencies. However, it has not been able to purchase the targeted quantity because of economic factors.

"You cannot just import to meet the target. Imports are to be made in phases so that international prices do not rise sharply. Besides, the domestic prices are also to be monitored," another government official said.

The PSUs have been able to contract nearly 1.4 million tons of pulses, including 0.9 million tons of yellow peas, till May 6 since April last year. Out of these contracted pulses, 1.19 million tons have already arrived in the country and 1.05 million tons are sold in the domestic market.

Giving details about the imports to be made during the current fiscal, the official said out of the 1.5 million tons target fixed for 2008-09, half the imports would be of yellow peas.

India imported 2.5 to 3 million tons of pulses during last fiscal, including purchase made by private traders, and the country is likely to contract similar quantities during 2008-09 fiscal, Pulses Importers Association President K C Bhartiya had said.

According to government's third advance estimate, pulses production is pegged at 15.19 million tons in 2007-08 against the estimated domestic requirement of 16.77 million tons.

Crude Oil Import Bill Jumps Over 29%

New Delhi: Crude oil import bill has jumped 29.5 per cent to $48.027 billion in the first nine months of current fiscal on increased volume of imports. India imported 91.224 million tons of crude oil for Rs 192,974 crore ($48.027 billion) in April-December 2007, as against import of 82.774 million tons for Rs 169,175 crore ($37.095 billion) in the corresponding period of last fiscal, according to latest data from the Petroleum Ministry. Run-up to Budget 2008-09

Import of 15.576 million tons of petroleum products cost the nation Rs 41,049 crore ($10.173 billion) in first nine months of current fiscal while export of 29.614 million tons of products earned the country Rs 78,286 crore ($19.395 billion).

The net oil import bill (crude oil import plus petroleum product import minus exports) in April-December was Rs 155,737 crore ($38.805 billion), as against Rs 134,655 crore ($30.359 billion) in the same period a year ago.

In April-December, India imported 4.79 million tons of naphtha for Rs 14,113 crore, 1.985 million tons of LPG for Rs 5,602 crore and 1.978 million tons of kerosene for Rs 6,445 crore.

Exports during the period were led by 10.869 million tons of shipments of diesel for Rs 29,208 crore and 7.612 million tons of naphtha for Rs 21,707 crore.

India Exploring Wheat Import Options

Mumbai: The global commodity markets are currently in a state of uncertainty. Prices remain volatile and outlook has turned increasingly uncertain in the backdrop of broader market concerns, especially in financial and energy markets. The global grains market is no exception. Wheat and soyabean prices spiked recently on the futures bourses to set new records. Corn (maize) too is tightening.

Investors are increasingly turning to agricultural commodities. The next 2-3 months are crucial. From now on, the focus of the global grains market participants would increasingly be on developments in the US. How the US farmers would respond to price changes in recent months, what would be their planting intentions and what considerations would weigh with them for any change in acreage allocation (including weather and disease outlook) are questions that would be pondered over.

The focus would also be on the northern hemisphere as a whole, with outcomes of crops in China and India being keenly watched. As far as the US is concerned, if the extent of price rally is the basis of decision by the farmers there, then wheat stands the best chance of an area expansion, followed by soyabean. Corn would be third in priority as its prices rallied less than the other two.

Volatility hook

However, until acreage numbers crystallise, the market would only be double-guessing the actual outcome. Therefore, a lot more choppy trading and volatility can be expected. According to the London-based International Grains Council (IGC), on current reckoning, the 2008 outlook for wheat is generally positive. Assuming reasonable weather in main producing areas, world wheat output is forecast to rebound by about 40 million tonnes (mt) to a record 642 mt.

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There is also strong expectation that soyabean production in 2008 would rebound by at least 10 per cent, especially in the US, from the previous year’s low of 70 mt (down 16 mt from 2006). Should that expectation materialize, and if combined with large oilseeds crop in China and India, the outcome will have price implications for the global vegetable oil market, notwithstanding the frenzy created by the bio-diesel sector.

Scouting for wheat

Meanwhile, there are reports about Indian wheat acreage having reached close to last year’s levels (27 million hectares). Official statements suggest expectation of crop size close to 2007 level of 75 mt. There are also reported statements that India would not need to import any more wheat.

Despite the brave assertions, it is believed that India is seriously scouting for wheat in the global market. The Government may be unwilling to take a chance as far as availability and prices are concerned, especially when elections are looming large.

Explorations are going on rather quietly because of the ruckus the last import contract created. The Government is currently engaged in examining various options. A barter deal with Russia is being studied. Exercising the ‘call option’ is another step that is under contemplation, although the last time it fizzled out.

Discussions with US

Importantly, discussions with even the US are currently on for wheat imports. It maybe recalled, the US could not supply to India because the latter refused to loosen the strict phyto-sanitary requirements. Meanwhile, the domestic trade has other ideas about the crop size.