29-Aug-2013
India, the world’s second largest wheat producer, may resume exports after a gap of three months as a slump in the nation’s currency to a record lowers costs for importers from South Asia to the Middle East.
“Private traders may ship about 1 million metric tonnes by March,” said Tejinder Narang, an adviser with Emmsons International Ltd., a New Delhi-based exporter. “Sales may increase further if the government cuts the export price of grains from its stockpiles,” he said.
Resumption of Indian exports may add to global supplies and pressure prices in Chicago that have fallen 27% in the past year on prospects for the biggest crop ever. The rupee tumbled 19% this year, boosting export potential of everything from rice to wheat to sugar and cotton, while increasing costs for imports of gold and crude oil. “Indian wheat will compete with grain from the Black Sea region,” said Vijay Iyengar, managing director of Agrocorp International Pte.
“The weak currency will make Indian wheat more competitive in the world market,” Abdolreza Abbassian, an economist at the United Nations’ Food & Agriculture Organization, said in a phone interview on Wednesday. “There is potential to increase exports. To export more, or to be more competitive, Indian price has to be closer to the world market.”
“Indian supplies at about $260 a tonne free-on-board basis could compete with those from Russia and Ukraine,” Emmsons’ Narang said. “Egypt, the world’s biggest importer, bought 295,000 tonnes of wheat on Wednesday at prices from $250.44 a tonne and $254 a tonne,” said Mamdouh Abdel Fattah, vice chairman of the state-run General Authority for Supply Commodities.
Source:- livemint.com
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