India has its plate full meeting Gulf’s basmati rice demand
Indian basmati rice is getting a premium of $20-30 (₹1,550-2,330) per tonne from countries in the Middle East, as rumours spread that New Delhi may put a ban on the export of the commodity to help cool local inflation.
Exporters have received communication from buyers to urgently ship the aromatic, long-grain rice, trade sources said. A firm price trend in global markets has pushed up domestic basmati prices by up to 15% in the last two weeks. The export price of basmati rice, which was $1,200 per tonne in November last year when the crop began arriving, cooled slightly but increased again in the past two weeks to $1,350. Middle eastern buyers are paying the premium over this price.
“We are suddenly witnessing a huge demand from the Middle East,” said Gautam Miglani, who owns Haryana-based basmati rice exporter LRNK. “The buyers are offering exporters a premium for urgent shipping of the grain. Rumours are going around that the government might put an export ban on basmati rice after it had banned wheat exports. This is fuelling the exports.”
India opposes WTO process on fisheries sops
New Delhi: India has objected to a process followed by the chair of the fisheries subsidies negotiations at the World Trade Organization (WTO) wherein information on ways to achieve a possible outcome was collected through a questionnaire from ambassadors of 50 countries in their personal capacities.
Terming the process “grossly erroneous” that “lacks credibility”, New Delhi told the WTO in an informal meeting of the heads of delegations that it was unclear how the samplings were done, which members were called for and the criteria used to select them.
“Lack of transparency in the process can lead us nowhere, if any, it will only create mistrust and confusion. The whole process, therefore, to us lacks credibility,” India said at the meeting held earlier this month, adding that this approach is “quite problematic in a multilateral setting”.
Suppliers in spot as ITC, Cargill cancel wheat buying contracts
Export houses such as ITC and Cargill have begun cancelling wheat procurement contracts with local traders following the ban on overseas sales of the cereal, putting suppliers in a fix as they don’t have holding capacities.
ITC, the country’s largest wheat exporter, has invoked force majeure. “The government of India has prohibited exports of wheat with immediate effect… thus resulting in a force majeure event. As a result all our balance contract with you stands cancelled at par with immediate effect,” ITC said in an email to suppliers that ET has seen. “The purchase contracts of wheat entered between you and ITC for delivery at port locations were meant for exports from India.”
Cargill told wheat suppliers it will accept deliveries that were loaded until May 14. Any wheat loaded after that will not be accepted by the company.
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