The Hindu Business Line : US wheat body sees imports at 30 lakh tonnes

Dr Akhilesh Prasad Singh, Minister of State for Consumer Affairs and Public Distribution (right), and Mr B. Shantilal, Chairman, Wheat Products Promotion Society, at the International Seminar on Wheat and Wheat Products - Vision 2020 in Bangalore on Friday.

M.R. Subramani

Bangalore, Feb. 8 Though the Union Minister of State for Consumer Affairs, Dr Akhilesh Prasad Singh, has ruled out import of wheat during 2008-09, a representative of the US wheat growers is of the view that shipments into the country could be around 30 lakh tonnes.

“We are basing our projections on our feedback on the crop and use of fertiliser. The use of fertiliser has come down by 30 per cent plus the area under wheat is down by five lakh hectares. Then, there has been late sowing in many parts. If all this is taken into consideration, then production will be lower than the Government’s estimates,” said Mr Mark Samson, Vice-President for South Asia, US Wheat Associates.

“The import will be required to ensure adequate buffer stocks with the Government,” he told Business Line, when asked to elaborate on his statement at the 2-day International Seminar on Wheat and Wheat Products here. “We have also discussed the prospects of Indian wheat with Government officials and the trade,” he said.

On Thursday, the Centre estimated wheat production at 74.81 million tonnes (mt), a little lower than the initial and trade estimates of 75 mt.

On the other hand, Mr Samson said the country was paying a higher price for buying wheat from the global market in view of its rigid import standards.

‘Use us for price discovery’

“We think, India has paid at least $150 million more in 2006. Actually, India set off the rise in wheat prices with its demand and standards,” he said.

US, whose wheat isn’t considered for imports by India in view of weed problems, is still hopeful of a solution.

“India need not buy wheat from the US but still it can use us for price discovery,” he said. This means, in case the US bids for an Indian tender, competitors may lower their price at which they offer their grain.

World stocks

Earlier, speaking on ‘Global wheat production, trade and commerce’, he said world carryover stocks were at 25-year low and supply would be tight in the international market.

Mr Alok Sinha, Chairman and Managing Director, Food Corporation of India, said domestic prices had witnessed a fall since the beginning of this month and it was a good sign.

Mr G. Chandrashekhar, Associate Editor, The Hindu Business Line, said wheat demand was consumption driven with the grain going for feed and ethanol production. Supply, on the other hand, was affected by weather uncertainties and competition for acreage of other crops.

Mr Amit Thakkar of Adani Enterprises said building of silos would eliminate gunny packaging and save spillage and wastage.

Mr Francois Gatel, Director, France Export Cereals, said France would be willing to export wheat to India.

Dr Louts Popper of Muhlenchemie Gmbh and Co, Germany, said attempts should be made to grow coconut and wheat in the same ecosystem.

Area under wheat

On the domestic wheat scenario, Dr B. Mishra, Project Director, Directorate of Wheat Research, said area under wheat could come under pressure in the coming days in view of rapid urbanisation. One of the major problems witnessed in wheat production was consistent fall in yield since 1999, he said.

Mr Jasvinder Singh Sethi of ITC Ltd – IB division, said the private sector could play a crucial role in empowering farmers with knowledge.

Mr Ravi Gupta, CEO, AWB Ltd, said whenever the area under wheat went up, the yield also rose and vice-versa and added that the current cold weather spell in the wheat growing areas was “phenomenally helping wheat”.

Mr Kamalakannan, President, Tamil Nadu Roller Flour Mills Association, said bulk handling of wheat could save the industry Rs 2,100 crore every year. He said while Rs 1,200 crore could be saved on moving wheat from the farmgate to the mills, Rs 900 crore could be gained in moving flour in bulk from the mills to user industries.

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