India Plans To Import 500,000 Tonnes Of Corn To Overcome Shortage

 India is considering importing an extra 500,000 tonnes of duty-free corn to overcome a shortage after a second straight drought cut output, a government source said on Wednesday.

India is traditionally a major corn exporter to Southeast Asia, but higher local prices because of the drought and rising domestic demand have halted exports and forced it to import.

In its first international tender, government-backed trader PEC awarded a contract to South Korea's Daewoo International to supply 250,000 tonnes of duty-free yellow non-genetically modified corn.

"Indian corn prices have shot up massively and actual users have asked us to facilitate corn imports. That's why the talk of another 500,000 tonnes of imports has started," the official said.

Local corn prices have jumped about 15 per cent so far in June.

The government source, who was not authorized to speak to the media, also said that India was likely to scrap its latest tender to import 50,000 tonnes of corn due to the high price quoted by the sole bidder.

The lowest offer in the tender was $254.55 a tonne on a cost and freight (c&f) basis for shipment to the Adani Tuna terminal in the port of Kandla followed by $255.30 a tonne c&f for shipment to other terminals in Kandla.

The agency was comfortable with price around $230 c&f, said the official, adding "Sourcing non-gm corn is very difficult and will continue to be difficult until at least September when the new crop will arrive in Europe."

India allows imports of only non-genetically modified varieties.

Indian farmers grow corn twice a year. The winter crop is planted in October, with harvests in March and April. The summer crop planting has started but supplies will become available only from end September.

"Supplies will remain limited until we get new crop. India has to import to check local prices," said a Mumbai-based dealer with a global trading firm.

"Quality of winter crop is not very good. Starch manufactures can not use a large part of the harvest. They will be the main buyers of overseas corn," the dealer said.

 

Source:economictimes.indiatimes.com
 

Fuel Consumption Grows 6.7% In May, Import Dependence Goes Up To 81.9%

 India's fuel consumption grew 6.7% in May over that a year ago, reflecting greater use of cars and increased air traffic in an expanding economy, while crude oil production fell 3.3%, increasing import dependence to 81.9% from 81.3%.

In May, India consumed 9.4% more diesel and 16.7% more petrol than it did a year ago, the latest data released by the oil ministry's Petroleum Planning & Analysis Cell shows. Aviation turbine fuel consumption grew 20% as lower prices and holiday travels boosted air traffic. Except for kerosene and naphtha, the consumption of all other petroleum products went up during the month.

Domestic output of oil and gas, however, did not pick up. In May, local crude oil production declined 3.3% to 3.1 million metric tonnes from a year ago. Natural gas production fell 6.9% to 2,656 million metric standard cubic meters. Increasing gas demand in the country was met by increased import of liquefied natural gas. India imported 2082 MMSCM of LNG, 43% more than it did a year ago.

The government has set a target to bring down oil imports to 67% of total consumption by 2022.

According to the Petroleum Planning & Analysis Cell's estimate, India's crude oil import will increase 2% to $66 billion in 2016-17 from $64 billion in the previous financial year considering crude oil price of $45 per barrel for the Indian basket and an exchange rate of Rs 67 to a dollar for the remaining part of this fiscal.

The prices of Brent crude averaged $46.88 per barrel in May, compared to $41.48 in April. The Indian basket crude oil averaged $44.97 per barrel in May, significantly higher than $39.85 a barrel in the previous month.

 

 

Source:economictimes.indiatimes.com