Wheat prices expected to fall further

NEWS DIGEST

Wheat prices, which had moved up in the recent past, have started easing and will come down further as fresh import consignments start reaching the country, Akhilesh Prasad Singh, minister of state for food and public distribution said on Thursday.

In the last two months, wheat prices in some major wholesale markets rose by about Rs 60-70 a quintal to Rs 860 a quintal.

"Prices of wheat might have risen on news of imports. Prices will fall further with the arrival of imported wheat," Singh told reporters on the sidelines of a seminar on 'Opportunities in Booming Commodities Market', organised by the Associated Chambers of Commerce and Industry of India. India is importing 1.3 million tonne of wheat from Australia's monopoly wheat exporter AWB and Agrico Trade and Finance SA of Switzerland to shore up its fast depleting buffer and curb prices.

The government also plans to float another tender soon to import 2.2 million tonne more wheat as the last tender floated by the State Trading Corporation to import 3 million tonne elicited lukewarm response due to rigid import norms. (CMW)

Cardamom prices up in CPMC auctions

Cardamom prices rose on improved buying at the season's last auctions held by Cardamom Processing and Marketing Company in Kumily on Wednesday.

Prices rose on demand from exporters and north Indian traders, dealers said. Exporters bought 3 tonne at the auctions this week compared to nil at the previous auction.

Bold varieties fetched a maximum price of Rs 502 a kg, up from Rs 344 a kg the previous week. Bulk of the bold varieties that came for auction was of superior quality compared with previous week and this helped in higher bids, a dealer said.

Bulk of medium grades also belonged to better quality, which fetched Rs 240 a kg, up Rs 10-15 compared with a week ago, he said.

The auctions will resume on July 12 after a month-long lean season holiday, CPMC general manager P C Punnoose said.

Auction houses are closed during June due to monsoon as well as tight supply due to lack of fresh supply. Fresh supply will commence only after next season's harvest, expected to begin from July end or early August, a dealer said. (CMW)

Lanka vanaspati units close import norms

Ten vanaspati export units in Sri Lanka closed from Sunday demanding India scrap the move to route all vegetable fat imports through National Agricultural Cooperative Marketing Federation. New Delhi allows vanaspati imports, under the India-Sri Lanka Free Trade Agreement, duty free.

"It has been decided by all the ten units to stop all exports and production with immediate effect until the government of India removes the notification," a report on Lankan Business Online quoted Sajad Mawzoon, president, Sri Lankan Vanaspati Manufacturers Association.

The report said Sri Lanka's department of commerce is still not sure how the new norm will take effect and are planning ministerial level representation to India shortly.

Duty-free vanaspati imports from Sri Lanka has been the sore point of trade relations between the two nations for the past several years. India's vanaspati industry blames Sri Lanka for flooding the country with cheap vanaspati because of low duties on palm oil in Sri Lanka. (CMW)

India's crude oil basket eases to $67.34

India's crude oil basket on Wednesday eased further to $67.34 a barrel from $67.62 a barrel on Tuesday in line with softening global prices, data from the petroleum ministry said.

Crude for July delivery on Wednesday ended 1.7 per cent lower at $70.82 a barrel on the New York Mercantile Exchange. The price of the Indian crude basket had hit an all-time high of $71.13 a barrel on May 2.

India's crude oil basket has averaged $67.43 a barrel in June so far, compared with $66.29 in May and $67.15 in April.

The basket comprises Oman-Dubai sour grade of crude and Brent dated sweet crude in a 58:42 ratio. Brent crude closed at $67.61 a barrel, while the Dubai and Oman benchmarks were at $66.55 and $67.46 respectively, the data released on Thursday said.