News

Wheat up in spot market post import duty.

Flour millers in South India will continue importing wheat from Australia and the Black Sea region even with the 10% duty imposed this week as its cheaper than locally grown supplies. Imports may reach as much as 2 million tonnes in 2017-18 with 80 to 85% likely coming from Australia and the remainder from the Black Sea. Importers will initially try to sell 250,000 tonnes to 300,000 tonnes of wheat stored near Tuticorin Port in the southern state of Tamil Nadu. India is seeking to rebuild stockpiles that plunged 44% in March from a year earlier to 9.43 million tonnes. India has been purchasing high-protein grain from Australia, Russia and Ukraine.

Japan Ministry of Agriculture said it would buy 120,000 tonnes of feed wheat to be loaded by July31 and arrive in Japan by Sept. 29, via a simultaneous buy and sell auction that will be held on April5. The tender is usually conducted weekly, but the ministry skipped the tender this week due to an adjustment at the end of the fiscal year that will end on March31. Japan buys and sells its feed wheat via simultaneous buy and sell auction, in which end-users and importers specify the origin, price and quantity of grain, allowing millers to meet their varied needs for the feed grain.

CBOT wheat prices declined (-3.44%). In the spot market, the supply price for US wheat (April delivery) lost USD 6. Despite the information on winter wheat conditions worsening in the largest producing states of the USA–Oklahoma and Kansas, the wheat futures continued to go down. The prices were pressured by a weather factor–a rain forecast in the regions of winter wheat production in the USA, which will refill soil moisture reserves.

Prices of wheat rise in major wholesale markets of the country after the govt levied 10% customs duty on import of wheat. Demand from bulk buyers was higher as the duty is expected to restrict imports, which will affect supply in the domestic market. The impact is likely to be offset by high arrivals of the new crop. In Kota, about 70,000 bags (1bag=100kg) arrive every day and supplies are likely to cross 100,000 bags in the next 15 days. Wheat prices also rise in Delhi. Prices remained unchanged in Indore market as arrivals were high and traders do not expect the import duty to have an immediate impact on supplies.

Amendment to Notification No.12/2012-Customs, dated the 17th March 2012, so as to impose basic customs duty of 10% on wheat with immediate effect.

Govt has imposed a 10% customs duty on import of wheat with immediate effect to restrict fall in their prices following a bumper crop in the country this year. Govt had scrapped the 10% import duty on wheat as supply in wholesale markets had dried up and prices had hit a record high. In the benchmark Indore market, wheat was sold lower than the MSP. After the removal of the duty in December, imports of wheat rise to a record 5 million tonnes in the current financial year.

Syria has received 50,000 tonnes of Russian wheat as humanitarian aid. Russian govt said in November their country plans to send around 100,000 tonnes of wheat as aid to Syria. A deal struck in October for Syria to buy 1 million tonnes of Russian wheat with little known firm Zernomir is in jeopardy.

Govt decided to purchase Rs225 billion worth of 7.05 million tonnes wheat, allow export of 200,000 tonnes of sugar and to pay one-month salary to Pakistan Steel Mill employees. The decisions were taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet presided over by Finance Minister Ishaq Dar.