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Iranian importers to buy Indian rice

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Iranian rice importers could open letters of credit in Indian rupees to pay for Indian rice this week, the president of the All India Rice Exporters Association said on Wednesday.

India said last week its exporters should be able to receive payments in the restricted rupee currency for sales to Iran to help maintain trade, despite US banking sanctions.

"I think it will be operational this week," Vijay Setia told Reuters on the sidelines of a grains conference in Dubai.

"The trouble that Indians are facing is that most of Iranian trade is indirect through Dubai and it is on the basis of long term 90 to 220 days credit," Setia said.

He said a weakening Iranian currency was making it even more difficult for Iranian buyers to pay for staple food imports.

One Iranian rice importer, who had not moved rice from India in two months because of large exchange rate fluctuations, said rupee payments might help revive trade.

"It is going to happen but it is not yet functional...we are waiting for the people to start with small quantities," Shahrokh Khazaei, executive director of Mohsen Line Trading, said.

Khazaei, whose firm trades around 200,000 tonnes of mostly Indian rice per year, said he had cargoes ready in India but was waiting for more clarity on payments before resuming imports to Iran.


Iraq seeks to buy 30,000 tonnes of rice

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Iraq's state grain board has issued an international tender to purchase at least 30,000 tonnes of rice, European traders said on Tuesday.

Any origin will be accepted.

The bidding deadline is February 13 and offers must remain valid until February 17.

Volumes in Iraq's grain tenders are regarded as nominal and the country frequently buys more than the tender volumes.

Shipment dates were not given.

Iraq's grain board has this year raised its quality standards for rice purchases, making it difficult for some origins, especially India, to compete in tenders.

The board increased the minimum length of rice grain to 6.8 millimeters from 6.0 millimeters and reduced permitted broken grain content to 3 percent from the previous 5 percent level.

In Iraq's last rice tender reported on February 2, the state board provisionally purchased about 150,000 tonnes from Vietnam, Uruguay, Thailand and India but the purchases will depend on supplies meeting the new quality standards.

Iraq seeks to buy 30,000 tonnes of rice

Posted by Flora Sawita Labels: , , , ,

Iraq's state grain board has issued an international tender to purchase at least 30,000 tonnes of rice, European traders said on Tuesday.

Any origin will be accepted.

The bidding deadline is February 13 and offers must remain valid until February 17.

Volumes in Iraq's grain tenders are regarded as nominal and the country frequently buys more than the tender volumes.

Shipment dates were not given.

Iraq's grain board has this year raised its quality standards for rice purchases, making it difficult for some origins, especially India, to compete in tenders.

The board increased the minimum length of rice grain to 6.8 millimeters from 6.0 millimeters and reduced permitted broken grain content to 3 percent from the previous 5 percent level.

In Iraq's last rice tender reported on February 2, the state board provisionally purchased about 150,000 tonnes from Vietnam, Uruguay, Thailand and India but the purchases will depend on supplies meeting the new quality standards.

Bhutan happy over Indian exemption of export ban on milk powder, wheat

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(FnB News) Bhutan has expressed happiness over acceptance of its request of exemption from application of any export bans on essential commodities.

Anand Sharma, minister of commerce, industry and textiles, during his meeting with Lyonpo Khandu Wangchuk, minister for economic affairs of Bhutan, recently, informed that director-general of foreign trade has issued notification exempting Bhutan from the application of export ban on milk powder, wheat, edible oil, pulses and non-Basmati rice with annual limits indicated by the Bhutanese side.

“India values the special relationship with Bhutan and we will be happy to expand our multifaceted cooperation which already covers key sectors such as hydropower, health, education, human resource development, media, telecom, ICT and infrastructure,” said Sharma.

Total trade between the two countries has been increasing. Total exports to Bhutan were $176 million while total imports from Bhutan were $201.57 million during 2010-11. India’s trade balance with Bhutan has turned negative from 2006 i.e. India imports more than it exports to Bhutan. Both the minister expressed the confidence that the trade could be diversified and also be doubled in less than 5 years.

Bhutan happy over Indian exemption of export ban on milk powder, wheat

Posted by Flora Sawita Labels: , , , , , ,

(FnB News) Bhutan has expressed happiness over acceptance of its request of exemption from application of any export bans on essential commodities.

Anand Sharma, minister of commerce, industry and textiles, during his meeting with Lyonpo Khandu Wangchuk, minister for economic affairs of Bhutan, recently, informed that director-general of foreign trade has issued notification exempting Bhutan from the application of export ban on milk powder, wheat, edible oil, pulses and non-Basmati rice with annual limits indicated by the Bhutanese side.

“India values the special relationship with Bhutan and we will be happy to expand our multifaceted cooperation which already covers key sectors such as hydropower, health, education, human resource development, media, telecom, ICT and infrastructure,” said Sharma.

Total trade between the two countries has been increasing. Total exports to Bhutan were $176 million while total imports from Bhutan were $201.57 million during 2010-11. India’s trade balance with Bhutan has turned negative from 2006 i.e. India imports more than it exports to Bhutan. Both the minister expressed the confidence that the trade could be diversified and also be doubled in less than 5 years.

Kenya to import 67,500 tonnes of maize by June

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Kenya is expected to import 67,500 tonnes of maize in the six months to June to boost its stocks, its Agriculture ministry said, a move likely to put weakening pressure on the shilling.

The east Africa nation said it planned to import three quarters of a million 90-kg bags of maize from regional and international markets to bolster supplies despite bigger harvests following recent good rains.

The ministry said the national maize stocks as at December 31, 2011 stood at 18.7 million bags from 16.58 million the previous month.

"If anticipated short rains production is achieved, and imports sustained at current rates with no exports, the national stocks level as at June 30 is estimated to be a surplus of 7,354,275 bags," the ministry said in a brief seen by Reuters.

"The stocks are however expected to diminish by the end of August ...

but will be replenished from the early harvests from the 2012 long rains from South Rift, and inflows from neighbouring countries and importations," the ministry said.

The ministry said the surplus is expected to ease pressure on the prices of the main staple food, handing relief to east Africa's largest economy where rising food, fuel and electricity prices are putting pressure on consumers.

Kenya's high inflation rate slowed year on year in December to 18.93 percent for the first time in 13 months and is projected to cool further partly due to favourable farming weather.

Prolonged drought in early 2011 slashed the output of most food cereals in the east African nation, leading to shortages that triggered major hikes in consumer prices.

Kenya in June removed import duty on maize and wheat to spur inflow from neighbouring countries and plug production deficits caused by drought.

The taxes will be reinstated by June this year.

John Muli, a trader at African Banking Corporation, said importation of maize would put pressure on the shilling, which plunged last year to a record low of 107 per dollar mainly due to a widening balance of trade deficit.


Kenya to import 67,500 tonnes of maize by June

Posted by Flora Sawita Labels: , , , ,

Kenya is expected to import 67,500 tonnes of maize in the six months to June to boost its stocks, its Agriculture ministry said, a move likely to put weakening pressure on the shilling.

The east Africa nation said it planned to import three quarters of a million 90-kg bags of maize from regional and international markets to bolster supplies despite bigger harvests following recent good rains.

The ministry said the national maize stocks as at December 31, 2011 stood at 18.7 million bags from 16.58 million the previous month.

"If anticipated short rains production is achieved, and imports sustained at current rates with no exports, the national stocks level as at June 30 is estimated to be a surplus of 7,354,275 bags," the ministry said in a brief seen by Reuters.

"The stocks are however expected to diminish by the end of August ...

but will be replenished from the early harvests from the 2012 long rains from South Rift, and inflows from neighbouring countries and importations," the ministry said.

The ministry said the surplus is expected to ease pressure on the prices of the main staple food, handing relief to east Africa's largest economy where rising food, fuel and electricity prices are putting pressure on consumers.

Kenya's high inflation rate slowed year on year in December to 18.93 percent for the first time in 13 months and is projected to cool further partly due to favourable farming weather.

Prolonged drought in early 2011 slashed the output of most food cereals in the east African nation, leading to shortages that triggered major hikes in consumer prices.

Kenya in June removed import duty on maize and wheat to spur inflow from neighbouring countries and plug production deficits caused by drought.

The taxes will be reinstated by June this year.

John Muli, a trader at African Banking Corporation, said importation of maize would put pressure on the shilling, which plunged last year to a record low of 107 per dollar mainly due to a widening balance of trade deficit.


Trading Corporation of Pakistan (TCP) awards Urea Contract

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TCP awards import contracts for 250,000 metric tonnes urea

Trading Corporation of Pakistan (TCP), in response to its international Gallop Tender Notice floated on January 11, 2012, awarded import contracts for a total of 250,000 Metric Tonnes (MTs) of Urea at $431.45 per metric tonne (PMT) C&F, to four different responsive bidders on the lowest bid price basis.

13 bidders participated in the tender and quoted prices ranged from $431.45 to $448.14 PMT (C&F). Eleven (11) bids were found responsive in terms of prescribed evaluation criteria. M/s. CHS Europe offered the lowest price of $431.45 PMT C&F for 50,000 MT which was accepted and the contract was awarded to them accordingly.

To complete the procurement of total targeted quantity of 250,000 MT Urea, the import contracts for balance quantity were awarded to three other bidders, who had quoted higher rates but agreed to match the lowest bid price of $431.45 PMT C&F.

They are M/s. Dreymoor Fertiliser Pte Ltd. Singapore, for 100,000 MT, M/s. Incitec Pivot Ltd. Australia and M/s. Globle Energy and Commodity Exchange, Italy for 50,000 MT, each. Permission to seek matching of the lowest price had been provided by the competent authority with a view to ensuring earliest arrival of imported urea in the country to cater for Rabi 2011-12.



Trading Corporation of Pakistan (TCP) awards Urea Contract

Posted by Flora Sawita Labels: , , ,

TCP awards import contracts for 250,000 metric tonnes urea

Trading Corporation of Pakistan (TCP), in response to its international Gallop Tender Notice floated on January 11, 2012, awarded import contracts for a total of 250,000 Metric Tonnes (MTs) of Urea at $431.45 per metric tonne (PMT) C&F, to four different responsive bidders on the lowest bid price basis.

13 bidders participated in the tender and quoted prices ranged from $431.45 to $448.14 PMT (C&F). Eleven (11) bids were found responsive in terms of prescribed evaluation criteria. M/s. CHS Europe offered the lowest price of $431.45 PMT C&F for 50,000 MT which was accepted and the contract was awarded to them accordingly.

To complete the procurement of total targeted quantity of 250,000 MT Urea, the import contracts for balance quantity were awarded to three other bidders, who had quoted higher rates but agreed to match the lowest bid price of $431.45 PMT C&F.

They are M/s. Dreymoor Fertiliser Pte Ltd. Singapore, for 100,000 MT, M/s. Incitec Pivot Ltd. Australia and M/s. Globle Energy and Commodity Exchange, Italy for 50,000 MT, each. Permission to seek matching of the lowest price had been provided by the competent authority with a view to ensuring earliest arrival of imported urea in the country to cater for Rabi 2011-12.



Apple juice made in America? Think again

Posted by Flora Sawita Labels: , , , , ,


NEW YORK (AP) - Which food revelation was more shocking this week?

Did it blow you away that low levels of a fungicide that isn't approved in the U.S. were discovered in some orange juice sold here? Yawn. Or was it the news that Brazil, where the fungicide-laced juice originated, produces a good portion of the orange pulpy stuff we drink? Gasp!

While the former may have sent prices for orange juice for delivery in March down 5.3 percent earlier this week, the latter came as a bombshell to some "Buy American" supporters. But that's not the only surprise lurking in government data about where the food we eat comes from.

Overall, America's insatiable desire to chomp on overseas food has been growing. About 16.8 percent of the food that we eat is imported from other countries, according to the U.S. Department of Agriculture, up from 11.3 percent two decades ago. Here are some other facts:

- Not all juices are treated the same. About 99 percent of the grapefruit juice we drink is produced on American soil, while about a quarter of the orange juice is imported; more than 40 percent of that is from Brazil.

- About half of the fresh fruit we eat comes from elsewhere. That's more than double the amount in 1975.

- Some 86 percent of the shrimp, salmon, tilapia and other fish and shellfish we eat comes from other countries. That's up from about 56 percent in 1990.

Better communication (thank you, Internet) and transportation (thank you, faster planes) play a role in all the food importing. And in many cases, it's just become much cheaper to pay for shipping food from distant countries, where wages are often lower and expensive environmental rules often laxer than in the U.S.

Our expanding population - and bellies - also has made feeding people cheaply more important. The U.S. has about 309 million residents, as of the 2010 U.S. Census. In 1990, that number was about 249 million.

There's also a shift in our food psychology. New Americans - those who have immigrated from Latin America and other countries - want the foods that they enjoyed back home. Not to mention that Americans in general have come to expect that they should be able to buy blueberries, spinach and other things even when they're not in season in the U.S.

"This is about the expectation that we're going to have raspberries when it's snowing in Ithaca," said Marion Nestle, a food studies professor at New York University.

Of course, the U.S. government still has high standards when it comes to dining on vittles that were created elsewhere.

For instance, while 85 percent of the apple juice we drink is imported, only about 7 percent of the apples we eat are. Andy Jerardo, an economist at the USDA, says that's because the juice often comes from China, which produces apples that are inferior for snacking but good for drinking.

And we still get the majority of American dinner staples like wine, red meat and veggies from within the U.S. The U.S. is more inclined to import foods that can be easily stored and won't spoil quickly. For example, 44 percent of the dry peas and lentils Americans consume are imported.

Also, we're much less likely to import foods that we already grow a lot of here. Indeed, only about 1 percent of the sweet potatoes we eat - which grow plentifully in states like California and North Carolina - come from outside the nation's borders. And basically all of our cranberries are from U.S. places like Massachusetts and Oregon.

But stuff like fruit and fish can be a little trickier to gauge.

The USDA's Kristy Plattner says the percentage of imported fruit has grown because we're eating more tropical fruits. That's a result of two things: More Americans have ties to Latino cultures and as a nation, we're becoming more adventurous eaters.

So, even though we consume fewer apples than we did 30 years ago (about 15.4 pounds per person in the 2010-11 season, down from 19.2 pounds in 1980-81), we eat more mangos (about 2.2 pounds, up from about one-fourth of 1 pound). We also chow on more limes, lemons, kiwi, papayas and avocados.

Fish importing has risen for another reason. The U.S. isn't building its aquaculture industry, or fish farms, as aggressively as some other countries.

Fish farms supply about half the world's seafood demand, including about half of U.S. imports, according to the National Oceanic and Atmospheric Administration. But in the U.S., our seafood farms meet less than 10 percent of the country's demand for seafood.

Lorenzo Juarez, deputy director of the NOAA's aquaculture office, says the U.S. has stricter environmental and safety standards for its farms. But that's not to say that the NOAA is opposed to U.S. fish farms.

In fact, the agency sees them as the best way to feed an expanding country, especially in light of USDA recommendations that Americans should expand their seafood intake.

"The amount of fish that can be had sustainably from the wild fisheries is set," Juarez said. "If we need to increase per-capita consumption, the only way this can happen is through aquaculture."

In other words, there are only so many fish in the sea.

By CHRISTINA REXRODE 
AP Business Writer


Apple juice made in America? Think again

Posted by Flora Sawita Labels: , , , , ,


NEW YORK (AP) - Which food revelation was more shocking this week?

Did it blow you away that low levels of a fungicide that isn't approved in the U.S. were discovered in some orange juice sold here? Yawn. Or was it the news that Brazil, where the fungicide-laced juice originated, produces a good portion of the orange pulpy stuff we drink? Gasp!

While the former may have sent prices for orange juice for delivery in March down 5.3 percent earlier this week, the latter came as a bombshell to some "Buy American" supporters. But that's not the only surprise lurking in government data about where the food we eat comes from.

Overall, America's insatiable desire to chomp on overseas food has been growing. About 16.8 percent of the food that we eat is imported from other countries, according to the U.S. Department of Agriculture, up from 11.3 percent two decades ago. Here are some other facts:

- Not all juices are treated the same. About 99 percent of the grapefruit juice we drink is produced on American soil, while about a quarter of the orange juice is imported; more than 40 percent of that is from Brazil.

- About half of the fresh fruit we eat comes from elsewhere. That's more than double the amount in 1975.

- Some 86 percent of the shrimp, salmon, tilapia and other fish and shellfish we eat comes from other countries. That's up from about 56 percent in 1990.

Better communication (thank you, Internet) and transportation (thank you, faster planes) play a role in all the food importing. And in many cases, it's just become much cheaper to pay for shipping food from distant countries, where wages are often lower and expensive environmental rules often laxer than in the U.S.

Our expanding population - and bellies - also has made feeding people cheaply more important. The U.S. has about 309 million residents, as of the 2010 U.S. Census. In 1990, that number was about 249 million.

There's also a shift in our food psychology. New Americans - those who have immigrated from Latin America and other countries - want the foods that they enjoyed back home. Not to mention that Americans in general have come to expect that they should be able to buy blueberries, spinach and other things even when they're not in season in the U.S.

"This is about the expectation that we're going to have raspberries when it's snowing in Ithaca," said Marion Nestle, a food studies professor at New York University.

Of course, the U.S. government still has high standards when it comes to dining on vittles that were created elsewhere.

For instance, while 85 percent of the apple juice we drink is imported, only about 7 percent of the apples we eat are. Andy Jerardo, an economist at the USDA, says that's because the juice often comes from China, which produces apples that are inferior for snacking but good for drinking.

And we still get the majority of American dinner staples like wine, red meat and veggies from within the U.S. The U.S. is more inclined to import foods that can be easily stored and won't spoil quickly. For example, 44 percent of the dry peas and lentils Americans consume are imported.

Also, we're much less likely to import foods that we already grow a lot of here. Indeed, only about 1 percent of the sweet potatoes we eat - which grow plentifully in states like California and North Carolina - come from outside the nation's borders. And basically all of our cranberries are from U.S. places like Massachusetts and Oregon.

But stuff like fruit and fish can be a little trickier to gauge.

The USDA's Kristy Plattner says the percentage of imported fruit has grown because we're eating more tropical fruits. That's a result of two things: More Americans have ties to Latino cultures and as a nation, we're becoming more adventurous eaters.

So, even though we consume fewer apples than we did 30 years ago (about 15.4 pounds per person in the 2010-11 season, down from 19.2 pounds in 1980-81), we eat more mangos (about 2.2 pounds, up from about one-fourth of 1 pound). We also chow on more limes, lemons, kiwi, papayas and avocados.

Fish importing has risen for another reason. The U.S. isn't building its aquaculture industry, or fish farms, as aggressively as some other countries.

Fish farms supply about half the world's seafood demand, including about half of U.S. imports, according to the National Oceanic and Atmospheric Administration. But in the U.S., our seafood farms meet less than 10 percent of the country's demand for seafood.

Lorenzo Juarez, deputy director of the NOAA's aquaculture office, says the U.S. has stricter environmental and safety standards for its farms. But that's not to say that the NOAA is opposed to U.S. fish farms.

In fact, the agency sees them as the best way to feed an expanding country, especially in light of USDA recommendations that Americans should expand their seafood intake.

"The amount of fish that can be had sustainably from the wild fisheries is set," Juarez said. "If we need to increase per-capita consumption, the only way this can happen is through aquaculture."

In other words, there are only so many fish in the sea.

By CHRISTINA REXRODE 
AP Business Writer


Pakistan loses European rice market share to India

Posted by Flora Sawita Labels: , , , ,

Pakistani exporters have lost the European rice market share to their Indian counterparts, say REAP office-bearers.

Pakistan, which used to export 300,000 tons of rice to the European Union countries every year, exported only 20,000 tons of rice this year, as Indian rice is replacing Pakistani rice quickly due to New Delhi’s unfair trade practices, besides higher per acre yield and cheaper costs particularly energy cost.

A rice variety named “CRS 30”, developed by Indian scientists, is being sold in the foreign markets especially EU by Indian exporters with the label of “basmati”. This new variety has been developed by the Indian agri scientists as a substitute of basmati, and it gives high yield at low cost, wiping Pakistani basmati rice from the foreign markets.

The office-bearers of Rice Exporters Association of Pakistan (REAP) revealed these facts during a reception hosted in honour of the TDAP chairman.

They further said that government research institutes at Kala Shah Kaku or Ghotki had failed to produce results in this regard. They urged the govt to constitute a team which would start working on war-footings for producing a quality seed with more yield.

They suggested that seed development task should be given to the private sector and incentives should be announced for the scientists who would produce required seed. “Incentives should be declared prior to assigning this task as it will encourage our scientists to work with more zeal,” they observed.

REAP members proposed exploring the possibilities of entering into a Counter Trade Agreement with Iran on mutually preferential terms for purchase of oil and sale of agricultural products including rice without the need for any hard currency.

They stressed the need for making laboratory QRC Rice Inspection Cell more effective besides getting achieving any international accreditation for this lab so that its certification is accepted by the importing countries worldover.

On the occasion, TDAP Chairman Tariq Iqbal Puri said that TDAP is setting up a study group to look into the potential commodities and products, which can be exported to India.

This group will interact with all the stakeholders including rice exporters to conduct an in depth research on Indian market and propose a list of items, which can be exported to Indian market from Pakistan.

Replying to the points raised by rice exporters, TDAP chairman admitted that presently this trade needs quality seed producing good yield. He said that all the stakeholders have to sit together taking this single item agenda.

Puri also stressed the need for awareness of rice growers and said even best marketing can not produce desired results if the product is below quality. He assured the exporters to arrange a meeting with the State Bank of Pakistan (SBP) next week to seek some relief in mark-up on export refinance as proposed by some of the REAP members.

TDAP Chief Executive also agreed with the proposal of the REAP members for focusing on China and Russia besides some other countries for increased export of Basmati rice. He said incomes and purchasing power of Chinese and Russian people are on the rise and Pakistani exporters should work hard to make inroads in these markets. He observed every product from Pakistan can be sold in Chinese market.

Puri also hoped that the government can not ask TCP and Passco to intervene in rice market to avoid any artificial increase in the prices.


Pakistan loses European rice market share to India

Posted by Flora Sawita Labels: , , , ,

Pakistani exporters have lost the European rice market share to their Indian counterparts, say REAP office-bearers.

Pakistan, which used to export 300,000 tons of rice to the European Union countries every year, exported only 20,000 tons of rice this year, as Indian rice is replacing Pakistani rice quickly due to New Delhi’s unfair trade practices, besides higher per acre yield and cheaper costs particularly energy cost.

A rice variety named “CRS 30”, developed by Indian scientists, is being sold in the foreign markets especially EU by Indian exporters with the label of “basmati”. This new variety has been developed by the Indian agri scientists as a substitute of basmati, and it gives high yield at low cost, wiping Pakistani basmati rice from the foreign markets.

The office-bearers of Rice Exporters Association of Pakistan (REAP) revealed these facts during a reception hosted in honour of the TDAP chairman.

They further said that government research institutes at Kala Shah Kaku or Ghotki had failed to produce results in this regard. They urged the govt to constitute a team which would start working on war-footings for producing a quality seed with more yield.

They suggested that seed development task should be given to the private sector and incentives should be announced for the scientists who would produce required seed. “Incentives should be declared prior to assigning this task as it will encourage our scientists to work with more zeal,” they observed.

REAP members proposed exploring the possibilities of entering into a Counter Trade Agreement with Iran on mutually preferential terms for purchase of oil and sale of agricultural products including rice without the need for any hard currency.

They stressed the need for making laboratory QRC Rice Inspection Cell more effective besides getting achieving any international accreditation for this lab so that its certification is accepted by the importing countries worldover.

On the occasion, TDAP Chairman Tariq Iqbal Puri said that TDAP is setting up a study group to look into the potential commodities and products, which can be exported to India.

This group will interact with all the stakeholders including rice exporters to conduct an in depth research on Indian market and propose a list of items, which can be exported to Indian market from Pakistan.

Replying to the points raised by rice exporters, TDAP chairman admitted that presently this trade needs quality seed producing good yield. He said that all the stakeholders have to sit together taking this single item agenda.

Puri also stressed the need for awareness of rice growers and said even best marketing can not produce desired results if the product is below quality. He assured the exporters to arrange a meeting with the State Bank of Pakistan (SBP) next week to seek some relief in mark-up on export refinance as proposed by some of the REAP members.

TDAP Chief Executive also agreed with the proposal of the REAP members for focusing on China and Russia besides some other countries for increased export of Basmati rice. He said incomes and purchasing power of Chinese and Russian people are on the rise and Pakistani exporters should work hard to make inroads in these markets. He observed every product from Pakistan can be sold in Chinese market.

Puri also hoped that the government can not ask TCP and Passco to intervene in rice market to avoid any artificial increase in the prices.


India: Cloves market revives on upcountry buying

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The cloves market in India showed some movements in recent days after a momentary hibernation in the closing weeks of 2011.

The market in Nagercoil in Tamil Nadu is said to have received some enquiries from upcountry buyers and the price there was Rs 900 a kg, trade sources in Nagercoil said. “There appeared to be an artificial panic created in the minds of traders here following reports of bearish sentiments in upcountry markets,” they said.

However, the market witnessed a revival last week and the prices moved up by Rs 50 a kg and this trend is expected to prevail, market sources in some of the upcountry markets claimed.

Some stockists who had exported their stocks when prices were ruling high in the international markets wanted to cover to replenish their stocks were trying to pull the market down, they alleged. A total quantity of an estimated 3,000 tonnes of cloves was shipped out last year from the country which is a net importer of the commodity. “Therefore, those who wanted to cover their sales resorted to bearish activities to depress the prices,” they told Business Line. “Some people are playing to manipulate the market,” a dealer in Nagerkoil alleged.

COSTLY IMPORTS

According to the trade in Nagercoil and Bangalore, the Sri Lankan crop is projected to be somewhere between 5 and 10 per cent only. They said the rupee has depreciated by around 20 per cent making the imports costly and consequently the landed cost has gone up substantially.

“Cloves markets in India came down due to a few bearish importers who sold blindly and wanted to cover goods,” market sources in Bangalore said. But the markets bounced back during the past few days. International markets are now at $11,000 to $13,000 and the import cost is above Rs 800 a kg, they said.

The traders claimed that there was no cloves stock in Zanzibar while Comoros reportedly sold out its entire crop and Indonesia was buying the entire Madagascar crop. Colombo crop failed totally and hence there continued to be a squeeze in availability, the sources claimed.

Meanwhile, the current Indian crop, according to growers, is going to be “around 70 per cent of the usual bumper crop”. Mr M Subramanian, a grower in Nagercoil said “Every alternate year we used to get bumper cloves crop but the current one is going to be somewhere between 60 and 70 per cent due to multiple factors,” Mr Subramanian, who is also the Joint Secretary of Cloves Growers Association of India (CGAI), told Business Line.

He said it is grown in Karumparai, Maramalai, Balmore and Belmalai region and the bumper crop normally ranges between 1,000 and 1,500 tonnes. Contrary to our expectations, the crop is estimated to be some where between 600 and 800 tonnes, he said. Consequently, the total availability this year of indigenous produce is likely to be around 1,500 tonnes, he said.

In Nagarcoil market, he said, cloves prices dropped from Rs 1,050 a kg to below Rs 800 a kg in recent weeks and there were no buyers.

However, growers in Tamil Nadu and Kerala, the major cloves growing States are hoping that prices would return to around Rs 1000 a kg in the coming days.


India: Cloves market revives on upcountry buying

Posted by Flora Sawita Labels: , , ,


The cloves market in India showed some movements in recent days after a momentary hibernation in the closing weeks of 2011.

The market in Nagercoil in Tamil Nadu is said to have received some enquiries from upcountry buyers and the price there was Rs 900 a kg, trade sources in Nagercoil said. “There appeared to be an artificial panic created in the minds of traders here following reports of bearish sentiments in upcountry markets,” they said.

However, the market witnessed a revival last week and the prices moved up by Rs 50 a kg and this trend is expected to prevail, market sources in some of the upcountry markets claimed.

Some stockists who had exported their stocks when prices were ruling high in the international markets wanted to cover to replenish their stocks were trying to pull the market down, they alleged. A total quantity of an estimated 3,000 tonnes of cloves was shipped out last year from the country which is a net importer of the commodity. “Therefore, those who wanted to cover their sales resorted to bearish activities to depress the prices,” they told Business Line. “Some people are playing to manipulate the market,” a dealer in Nagerkoil alleged.

COSTLY IMPORTS

According to the trade in Nagercoil and Bangalore, the Sri Lankan crop is projected to be somewhere between 5 and 10 per cent only. They said the rupee has depreciated by around 20 per cent making the imports costly and consequently the landed cost has gone up substantially.

“Cloves markets in India came down due to a few bearish importers who sold blindly and wanted to cover goods,” market sources in Bangalore said. But the markets bounced back during the past few days. International markets are now at $11,000 to $13,000 and the import cost is above Rs 800 a kg, they said.

The traders claimed that there was no cloves stock in Zanzibar while Comoros reportedly sold out its entire crop and Indonesia was buying the entire Madagascar crop. Colombo crop failed totally and hence there continued to be a squeeze in availability, the sources claimed.

Meanwhile, the current Indian crop, according to growers, is going to be “around 70 per cent of the usual bumper crop”. Mr M Subramanian, a grower in Nagercoil said “Every alternate year we used to get bumper cloves crop but the current one is going to be somewhere between 60 and 70 per cent due to multiple factors,” Mr Subramanian, who is also the Joint Secretary of Cloves Growers Association of India (CGAI), told Business Line.

He said it is grown in Karumparai, Maramalai, Balmore and Belmalai region and the bumper crop normally ranges between 1,000 and 1,500 tonnes. Contrary to our expectations, the crop is estimated to be some where between 600 and 800 tonnes, he said. Consequently, the total availability this year of indigenous produce is likely to be around 1,500 tonnes, he said.

In Nagarcoil market, he said, cloves prices dropped from Rs 1,050 a kg to below Rs 800 a kg in recent weeks and there were no buyers.

However, growers in Tamil Nadu and Kerala, the major cloves growing States are hoping that prices would return to around Rs 1000 a kg in the coming days.


Indonesia will not import rice in 2012: Bulog

Posted by Flora Sawita Labels: , ,


Indonesia will not import rice in 2012 and instead maintain high stock levels by buying 4 million tonnes of the staple grain from domestic sellers, state procurement agency Bulog said.

Southeast Asia's biggest economy and the world's third-largest rice grower, issued permits to import 1.9 million tonnes of rice last year, from Vietnam, Thailand and India.

"Our target in 2012 is no rice import," said Bulog's CEO Sutarto Alimoeso late on Wednesday.

"We are optimistic to procure all 4 million tonnes of rice domestically in 2012 - if the rice production target of 72.02 million tonnes can be achieved."

Indonesia's unmilled rice output is expected to rise 10 percent to 72.02 million tonnes this year as it expands plantation areas.

The world's most populous Muslim nation likes to keep large stocks of rice to guard against possible food inflation and production problems should they arise.

"In 2012 we also will distribute rice for the poor of 3.1 million tonnes," Alimoeso added.

"The rice will be distributed every month for the whole year."
Indonesia has about 240 million mouths to feed, with monthly rice consumption at around 2.7 million tonnes and growing.

The country was self-sufficient in rice in the early 1980s before farmland was turned into housing for a booming population, while rampant smuggling put pressure on local growers.



Indonesia will not import rice in 2012: Bulog

Posted by Flora Sawita Labels: , ,


Indonesia will not import rice in 2012 and instead maintain high stock levels by buying 4 million tonnes of the staple grain from domestic sellers, state procurement agency Bulog said.

Southeast Asia's biggest economy and the world's third-largest rice grower, issued permits to import 1.9 million tonnes of rice last year, from Vietnam, Thailand and India.

"Our target in 2012 is no rice import," said Bulog's CEO Sutarto Alimoeso late on Wednesday.

"We are optimistic to procure all 4 million tonnes of rice domestically in 2012 - if the rice production target of 72.02 million tonnes can be achieved."

Indonesia's unmilled rice output is expected to rise 10 percent to 72.02 million tonnes this year as it expands plantation areas.

The world's most populous Muslim nation likes to keep large stocks of rice to guard against possible food inflation and production problems should they arise.

"In 2012 we also will distribute rice for the poor of 3.1 million tonnes," Alimoeso added.

"The rice will be distributed every month for the whole year."
Indonesia has about 240 million mouths to feed, with monthly rice consumption at around 2.7 million tonnes and growing.

The country was self-sufficient in rice in the early 1980s before farmland was turned into housing for a booming population, while rampant smuggling put pressure on local growers.



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