Congested ports delay wheat import clearing

About 2.5 lakh tonne of the total wheat imported by State Trading Corporation (STC) is estimated to be stuck at various Indian ports. Of the 55 lakh tonne wheat contracted by STC, about 17.2 lakh tonne has arrived at various ports of the country.

However, Food Corporation of India (FCI) has so far received only 14.75 lakh tonne of wheat.

"The ports are clogged and it is delaying the shipments," said a government official.

FCI has already started disposing wheat stocks under various government-sponsored public distribution schemes (PDS).

"We have disposed about 7 lakh tonne wheat to Maharashtra, Madhya Pradesh, Gujarat, along with the southern states," said an official with FCI.

STC had contracted import of 55 lakh tonne wheat on behalf of the government. This amount is meant exclusively for the PDS.

Meanwhile, the futures prices of wheat are witnessing an increase over those of the last one week. At the National Commodity and Derivatives Exchange (NCDEX), wheat for October delivery went up from Rs 963 a quintal on October 5 to Rs 1,011.

Wheat for November delivery also moved up from Rs 986 a quintal to Rs 1,025 over the same period.

"The festive demand has brought about a spurt in the futures prices. The shortage of wheat in the international market has also supported the prices. The arrivals in Delhi's Lawrence Road mandi is low, with only 7,000 one-quintal bags arriving on Thursday as against the average 10,000 bags," said a Karvy analyst.