Corn prices advance up in India
Corn prices continue to rule higher and with no sign of relief in near future. Prices in areas like Sangli, Miraj which are the producing areas are ruling at Rs.6000 ($138) per MT delivered to the feed factory. Prices in other areas of Karnataka are also higher and arrivals are very slow. Arrivals in only few markets of Andhra Pradesh and Bihar are about 100 tons, while in Karnataka one or two markets are reporting arrivals of higher than 500 tons. Prices range from a low of Rs.4785 ($110) per MT in Bihar to a high of Rs.7130 ($164) per MT in Gujarat. Bihar Maize is available in Delhi at Rs.5900 ($135) per MT.
On the futures market, the prices for July and August delivery were quoted at Rs.5687 ($131) and Rs.5745 ($132) per MT respectively. On the spot markets the prices were close to Rs.5555 ($128) at Nizamabad and Rs.5275 ($121) at Davangere.
The monsoon on the other side has advanced, but it is not enough. Some areas of Maharashtra are covered, but the major area is left out. Monsoon also surpassed Hyderabad and reached Calcutta. The north is probably the most severely affected due to high temperatures and parched land. Only small areas seem to be cultivated where irrigation is available.
As the sowing gets delayed by over two weeks in most parts of the corn belts in south India, the production is likely to be effected, though it is very early to predict.
The US corn prices also continued to up and the CBOT closed at $2.35 per bushel ($92.51) per ton. The FOB US Gulf prices were hovering around $101 per MT. With freight prices coming down as well, trade to Asia is much cheaper.
The International Grains Council (IGC) at its recent meeting in London released crops outlook for the year 2005/06.
The Council reviewed the outlook for various grains, including, wheat and corn. With regard to wheat, the latest available forecasts pointed to some downturn from last year’s exceptional yields but global production would likely remain above-average. Official crop forecasts had recently been lowered in Australia, India, Europe and the United States, mainly because of excessively dry conditions, although timely rains had improved prospects in Australia.
As regards coarse grains, the world coarse grains harvest in 2005 is expected to decline from the previous year, even though yield assumptions in some countries, notably the United States, were above-trend. World closing stocks of maize at the end of 2005/06 were expected to increase again. Stocks were forecast unchanged in China, after large falls in recent years. In the longer term, these were likely to decline further as China’s domestic demand outstripped maize output. World trade in maize was forecast to rise in 2005/06, with Brazil expected to turn from an exporter to a net importer, and with higher exports for Argentina and the United States.
A recent study by the council, shows that trade in meat had steadily and substantially risen in recent years and that this represented some 45 MMT of indirect grain trade in 2004. IGC expects a continued strong growth in meat demand, especially in feed-deficit developing countries, and this would boost the meat trade rise further, with the grain equivalent projected to climb by an additional 10 MMT between now and 2010.
As per the “Food Outlook” report from FAO, the world grain trade is set to decline slightly in the 2005-06 marketing season.
FAO puts global cereal trade in 2005-06 at 230 million tonnes, or 1.3% below the previous season, mainly because of lower wheat import demand.
All you wanted to know about white sorghum
Must of us are aware of Jowar (Sorghum) as a poor man’s food. In India the production of grain sorghum has been declining, thus leading to price increases. Current prices of white sorghum are close to Rs.8000 to 8300 per MT ($184 – 191).
World over interest has been generated in white sorghum, especially in areas where people wish to lead a healthy lifestyle. Even in India there is a population who would like to eat products made out of white sorghum as there is a general belief that it is healthy to eat sorghum.
There are many people in the world who suffer from gluten allergy. Gluten is a collection of proteins found in wheat and other cereal grains. In the popular imagination, proteins are the safe and desirable components of food. Unfortunately, wheat and its close relatives, barley, rye and oats can also be cause of allergies. Immune responses do develop to gluten proteins.
Coeliac Disease (also known as gluten-sensitive enteropathy or coeliac sprue) is the best-recognized form of gluten allergy. It is a condition of the small intestine and is sometimes associated with other conditions. People with insulin-dependent diabetes, thyroid problems and ulcerative colitis, have an increased chance of developing coeliac disease
There is evidence that gluten allergy in some people contributes to or causes a surprising number of diseases. A short list includes asthma, eczema, hives, arthritis, chronic fatigue, fibromyalgia, cerebellar ataxia, diabetes 2, depression, migraine headaches, Crohn's disease, irritable bowel, lymphoma and gastrointestinal cancers. There is a distinct possibility that gluten allergy contributes to the development of autism, schizophrenia, several autoimmune disorders and glomerulonephritis.
U S Grains Council though its office in Japan has is working closely with Japan Confectionery Association to provide more information on white sorghum and the products that can be made from it. In a recent seminar, the participants tasted six different sorghum sweets without wheat, including pistachio and walnut cake, pumpkin roll, fresh cheese cake, peach and cream tart, strawberry chocolate sorghum puff, and walnut cookie.
If there is any interest in white sorghum and what to make from white sorghum, please download the handbook from the council’s website: www.grains.org, or directly go the link below.
http://www.grains.org/buying/publications/Sorghum%20Handbook.pdf
More than half of the world Cotton will be GM (from Bloomberg.com)
As per the report from Rabobank, more than half the world's cotton may be grown from genetically modified crops within the next two years as farmers in India and Brazil embrace the new technology that promises increased incomes and higher output.
Currently about 35% of the cotton produced in the world is GM, mostly from Monsanto’s Bollgard II and other gene related varieties. The share will increase to 50% by 2006-07 as per the report.
The new technology strains can withstand pest attack, require less pesticide and a lower pesticide cost will reduce costs of production, boosting incomes. Rising sales of the biotechnology in countries such as Brazil may bolster supplies amid a global glut of the fiber.
“`The expansion of GM production, particularly in regions which already operate under a fairly low-cost production system, will have long-term implications upon the marginal cost of production and, subsequently, prices,”' Rabobank said in a May cotton industry report.
Prices on the New York Board of Trade, the world's biggest cotton futures market, slumped 40 percent last year after larger crops in the U.S. and China swelled global supplies. As per USDA report, the global output may exceed consumption by 2.5 million tons in the year ending July 31.
India, the world's third-largest cotton-grower, planted 550,000 hectares (1.36 million acres) of biotech crops last year, up 460 percent from a year earlier, Rabobank said.
“Some estimates indicate that this area may officially double in 2005-06 to 1 million hectares and, coupled with a higher proportion of better performing seeds, there is talk of India surpassing U.S. production in the near future to become the second-largest cotton producer globally behind China,”' the report said.
In the U.S., 54 percent of cotton crops were planted with gene-altered seeds, according to Rabobank. The proportion rises to 76 percent in China and 80 percent in Australia.
Brazil, the world's fifth-largest cotton-grower, will probably become the largest growth market for biotech cotton after the government officially approved the release of genetically modified varieties in March, Rabobank said.
“The uptake is likely to be quick,” the bank said. “The inherent cost savings will encourage the use of GM seed”' and strengthen the South American country's cotton exports.
According to the report, the cost of producing a pound of cotton in Brazil has risen to 50 U.S. cents from 43 U.S. cents two years ago, partly as higher energy prices drove up the cost of ammonia and other fertilizers,
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Friday, June 24, 2005
Monday, June 20, 2005
Poor raw material availability, leads to higher prices; Cascading effect of delayed monsoon; Food Standards – code of hygiene practices
Poor raw material availability, leads to higher prices
The prices of almost all grains are on the rise, affecting the profitability of all end user sectors. The wheat and corn situation is probably most alarming of all.
Wheat prices in most a parts are ruling above Rs.7650 ($ 176) per MT. In Madhya Pradesh the prices are at Rs.7950 ($183) per MT. The wheat prices on CBOT were $3.23 per bushel ($118) per MT.
Based on the current estimates provided by GOI, the production of wheat is estimated at 72 MMT (trade puts the estimate lower than 70 MMT). Based on a 72 MMT production and assuming all of this will get consumed, the per capita availability of wheat will be 183 gm per person per day if all 1.06 billion people were to be fed. If 20 percent of the population is discounted the per capita availability will be 232 gm per person per day.
Food Corporation of India has procured 14.7 MMT of wheat this season (the target was fixed at 17 MMT) and had 4.1 MMT of stocks as on April 1, 2005. Already 4.3 MMT of stocks has been allocated and despatched, which would mean 14.5 MMT of stocks as on date. This would effectively mean 1.45 MMT of allocation per month for the next 10 months (Last 2 month allocation 2.15 MMT).
During the period 2000 – 2003, India exported some 14 MMT of wheat. This was due to the huge amount of stocks that were piled up due to faulty distribution system. Some of the FCI wheat was also made available to the poultry and livestock sector. With the distribution system in place now and people getting wheat, there is little hope for the surplus let alone any buffer stocks at the end of the year.
The corn situation is also alarming as the prices are higher than June 2004 prices, specially in states of Bihar, Gujarat, Maharashtra, Rajasthan, Tamilnadu and Uttar Pradesh. The average price in mid June 1004 was Rs.5307 ($122) per MT, while this year the average prices are higher by approximately Rs.500 per ton and averaged Rs.5785 ($133) per MT.
GOI estimates the production at 14.5 MMT for the year 2004-05, while the trade estimates the production at 12.1 – 12.5 MMT during the same period. While the average productivity by GOI has been estimated at 2.07 tons per hac, the trade estimates the productivity at 1.78 tons per hac. Based on the current usage in poultry, livestock, starch and food the requirement will range from 12.9 – 13.3 MMT, without taking into account exports to Bangladesh, Nepal and Sri Lanka.
Corn prices in US closed higher on Friday. CBOT closed higher at $2.29 per bushel ($90.15) per ton fir July delivery. This is higher by $7.48 per ton in one week. (Close on June 10 was $2.10 per bushel - $82.67 per ton). The FOB values were $100 per ton for July delivery. The freight is also steady and going down on almost all routes, which is a very encouraging sign.
The detailed USGC report on US prices can be found at
http://www.grains.org/buying/market_perspectives/mp_6-17-05.pdf
Under certain circumstances, poultry and livestock farmers have used wheat, sorghum and bajra (Pearl Millet) in diets. But these materials can not replace corn completely though some replacement is possible which also compromises the efficiency of production. With the wheat situation so alarming and prices much higher than maize, it will be almost impossible to include wheat in poultry rations. As regards Bajra (Pearl Millet) and Sorghum, the prices are higher than or similar to corn, which does not allow poultry farmers to use these commodities on a large scale.
Under such circumstances, the cost of production of chicken is bound to go up in coming months, if the availability of coarse cereals does not improve and prices do not stabilize. The current cost of production of chicken in South India (under integration) is about Rs.27 ($0.72) per kg, while in North India the cost of production is estimated at Rs.31 ($0.71) per kg. A small increase in feed cost by Rs.0.50 ($0.011) per kg would increase the cost of production in South by Rs.0.87 ($0.02) per kg, while in the North the cost of production would increase by Rs.0.95 ($0.022) per kg.
Cascading effect of delayed monsoon
Under the current situation when monsoon is delayed and several predictions are being made with regard to its onward journey, probably the farmer (whose next years earnings depend on this monsoon) and the end user (whose growth is dependent on this monsoon) are most anxious to know what is going to happen and if and when the south-westerly winds will provide water to the parched Indian soil and the reservoirs.
As the Southwest monsoon gets delayed and takes its own time to revive, speculations on short term and long term effect of this delay can be seen in many of the reports, predicting slowdown of the economy.
Going by the targets fixed and estimates generated, the target for the growth in economy for the period 2002-07 was set at 8 percent on an average. In the first year of the tenth plan (2002-03) the growth was 4%, followed by 8.5% in the second year (2003-04) and a slow down in the third year (2004-05) to 6.9%. The average for the three years being 6.49%. For the current year (2005-06), the growth has been estimated at 6%, which will further bring down the average growth by a few decimal points.
The delay in monsoon affects the sowing, productivity of the crops and also the long term planning of all people who have a stake in India’s agrarian economy. Reports are already coming in of delayed sowing in South and Western parts of the country. If monsoon is further delayed, the GOI will have to be ready with scaling up the Food- for-Work program, which will put pressure on the Food Corporation of India to release more stocks of wheat.
Food Standards – code of hygiene practices
As the poultry industry grows, there will be a need for process chicken and market the same. Though there are national standards as well, prescribed by the Ministry of Food Processing Industries, Government of India under Meat Food Products Order (MFPO) of 1973. While the same has been amended and several changes made, the chilled and frozen chicken is still not covered under the order completely.
For those who wish to produce quality chicken, the code for Hygiene Practice in Poultry processing from Codex Alimentarius can be downloaded, following the link given below.
http://www.codexalimentarius.net/download/standards/163/CXP_014e.pdf
For those who are making value added products, the Recommended International code of Hygienic Practices for Processed meats and Poultry products can be downloaded, following the link given below
http://www.codexalimentarius.net/download/standards/162/CXP_013e.pdf
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
The prices of almost all grains are on the rise, affecting the profitability of all end user sectors. The wheat and corn situation is probably most alarming of all.
Wheat prices in most a parts are ruling above Rs.7650 ($ 176) per MT. In Madhya Pradesh the prices are at Rs.7950 ($183) per MT. The wheat prices on CBOT were $3.23 per bushel ($118) per MT.
Based on the current estimates provided by GOI, the production of wheat is estimated at 72 MMT (trade puts the estimate lower than 70 MMT). Based on a 72 MMT production and assuming all of this will get consumed, the per capita availability of wheat will be 183 gm per person per day if all 1.06 billion people were to be fed. If 20 percent of the population is discounted the per capita availability will be 232 gm per person per day.
Food Corporation of India has procured 14.7 MMT of wheat this season (the target was fixed at 17 MMT) and had 4.1 MMT of stocks as on April 1, 2005. Already 4.3 MMT of stocks has been allocated and despatched, which would mean 14.5 MMT of stocks as on date. This would effectively mean 1.45 MMT of allocation per month for the next 10 months (Last 2 month allocation 2.15 MMT).
During the period 2000 – 2003, India exported some 14 MMT of wheat. This was due to the huge amount of stocks that were piled up due to faulty distribution system. Some of the FCI wheat was also made available to the poultry and livestock sector. With the distribution system in place now and people getting wheat, there is little hope for the surplus let alone any buffer stocks at the end of the year.
The corn situation is also alarming as the prices are higher than June 2004 prices, specially in states of Bihar, Gujarat, Maharashtra, Rajasthan, Tamilnadu and Uttar Pradesh. The average price in mid June 1004 was Rs.5307 ($122) per MT, while this year the average prices are higher by approximately Rs.500 per ton and averaged Rs.5785 ($133) per MT.
GOI estimates the production at 14.5 MMT for the year 2004-05, while the trade estimates the production at 12.1 – 12.5 MMT during the same period. While the average productivity by GOI has been estimated at 2.07 tons per hac, the trade estimates the productivity at 1.78 tons per hac. Based on the current usage in poultry, livestock, starch and food the requirement will range from 12.9 – 13.3 MMT, without taking into account exports to Bangladesh, Nepal and Sri Lanka.
Corn prices in US closed higher on Friday. CBOT closed higher at $2.29 per bushel ($90.15) per ton fir July delivery. This is higher by $7.48 per ton in one week. (Close on June 10 was $2.10 per bushel - $82.67 per ton). The FOB values were $100 per ton for July delivery. The freight is also steady and going down on almost all routes, which is a very encouraging sign.
The detailed USGC report on US prices can be found at
http://www.grains.org/buying/market_perspectives/mp_6-17-05.pdf
Under certain circumstances, poultry and livestock farmers have used wheat, sorghum and bajra (Pearl Millet) in diets. But these materials can not replace corn completely though some replacement is possible which also compromises the efficiency of production. With the wheat situation so alarming and prices much higher than maize, it will be almost impossible to include wheat in poultry rations. As regards Bajra (Pearl Millet) and Sorghum, the prices are higher than or similar to corn, which does not allow poultry farmers to use these commodities on a large scale.
Under such circumstances, the cost of production of chicken is bound to go up in coming months, if the availability of coarse cereals does not improve and prices do not stabilize. The current cost of production of chicken in South India (under integration) is about Rs.27 ($0.72) per kg, while in North India the cost of production is estimated at Rs.31 ($0.71) per kg. A small increase in feed cost by Rs.0.50 ($0.011) per kg would increase the cost of production in South by Rs.0.87 ($0.02) per kg, while in the North the cost of production would increase by Rs.0.95 ($0.022) per kg.
Cascading effect of delayed monsoon
Under the current situation when monsoon is delayed and several predictions are being made with regard to its onward journey, probably the farmer (whose next years earnings depend on this monsoon) and the end user (whose growth is dependent on this monsoon) are most anxious to know what is going to happen and if and when the south-westerly winds will provide water to the parched Indian soil and the reservoirs.
As the Southwest monsoon gets delayed and takes its own time to revive, speculations on short term and long term effect of this delay can be seen in many of the reports, predicting slowdown of the economy.
Going by the targets fixed and estimates generated, the target for the growth in economy for the period 2002-07 was set at 8 percent on an average. In the first year of the tenth plan (2002-03) the growth was 4%, followed by 8.5% in the second year (2003-04) and a slow down in the third year (2004-05) to 6.9%. The average for the three years being 6.49%. For the current year (2005-06), the growth has been estimated at 6%, which will further bring down the average growth by a few decimal points.
The delay in monsoon affects the sowing, productivity of the crops and also the long term planning of all people who have a stake in India’s agrarian economy. Reports are already coming in of delayed sowing in South and Western parts of the country. If monsoon is further delayed, the GOI will have to be ready with scaling up the Food- for-Work program, which will put pressure on the Food Corporation of India to release more stocks of wheat.
Food Standards – code of hygiene practices
As the poultry industry grows, there will be a need for process chicken and market the same. Though there are national standards as well, prescribed by the Ministry of Food Processing Industries, Government of India under Meat Food Products Order (MFPO) of 1973. While the same has been amended and several changes made, the chilled and frozen chicken is still not covered under the order completely.
For those who wish to produce quality chicken, the code for Hygiene Practice in Poultry processing from Codex Alimentarius can be downloaded, following the link given below.
http://www.codexalimentarius.net/download/standards/163/CXP_014e.pdf
For those who are making value added products, the Recommended International code of Hygienic Practices for Processed meats and Poultry products can be downloaded, following the link given below
http://www.codexalimentarius.net/download/standards/162/CXP_013e.pdf
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Sunday, June 12, 2005
Prices of coarse grains going up; Biotech controversy raked up again
Prices of coarse grains going up
As the summer peaks, the prices of coarse grains also seem to peak. Prices of almost all coarse grains including small grains is showing an upward trend in India, while in US the prices are softening due to good sowing and emergence reports. The report received in the first week of June reported over 95 percent sowing and 83 percent emergence. The CBOT prices were reported at $86.00 per MT, while the FOB values were $103 per MT for August delivery. This week the CBOT closed $2.11 per bushel, ($83.05 per MT) for July delivery. FOB values worked out close to $97 per MT.
The Indian prices on the other hand have been going up as the monsoon controversy heats up. Yellow Maize average rates were reported at Rs.6250 – Rs.6480 ($143 - $149) per MT at market yards. The price for Kesari (Dark Yellow) were reported little lower at Rs.6125 ($140) per MT. Added to this the mandi costs and delivery costs, the prices of yellow corn will be much higher than anticipated. The prices were the highest in Gujarat and touched Rs.6525 ($150) per MT at the market yard. Prices were however lower in Bihar and some parts of Andhra Pradesh and were report at Rs.4800 ($109) per MT and Rs.5100 ($117) per MT respectively.
With the wheat production, procurement and stock controversy currently ongoing, any discussion on maize prices and supplies would be a distant dream. While Shri.Sharad Pawar, Minister of Agriculture, Govt. of India has indicated that if need be wheat will be imported, the Managing Director of Food Corporation of India has indicated that there are ample stocks in the country to fulfil the needs.
Maize is the third most important crop in the country and the top coarse cereal and as prices go sky rocketing, the end users (Poultry farmers, starch manufacturers) get affected and not the consumers directly. Does that mean that the grain is not important? To the people involved in its production and use, it is probably more important than thought. At current FOB values and lower freight costs, importing maize for the costal areas without duty would be feasible and this will help the poultry as well as the starch sector.
Prices of other coarse cereals like Barley, Pearl Millet (Bajra) and Grain sorghum have also firmed up. While Barley was traded at highest value of Rs.6750 ($155) in UP, Pearl Millet was traded at highest value in Andhra Pradesh at Rs.6000 ($138) per MT. Grain Sorghum was traded at highest value in Rajasthan at Rs.7960 ($183) per MT. Grain Sorghum in Maharashtra was traded at Rs.7300 ($168) per MT.
USDA’s report estimates world ending stocks at 121 MMT for the year 2005-06, lower than 2004-05. China’s ending stocks have also been reported at 25.6 MMT for the year 2005-06, lower than 35.4 MMT for the year 2004-05.
Biotech controversy raked up again
While the world is going forward and countries like Kenya have started trials with GM maize to counter the attack of stem borer, which effect 20% of their production and also Zimbabwe which till last year had rejected the offer for food aid due to GM crops, pleaded with World Food Program for food aid.
NGO’s is India have raked up the controversy again by crying foul on the issue of biotechnology and have requested for a complete ban on biotech products, which is unrealistic.
Several reports suggest that the Indian R&D proposal is already delayed and with such calls, it is an effort to derail the growth of the country as a whole. Independent study done at University of Reading, UK, compares official bt hybrids, unofficial and also non bt varieties. The study suggests that:
a. Bt varieties significantly outperform unofficial varieties in terms of gross margin
b. Official Bt varieties produced the highest yields, from 20-37% greater than unofficial varieties
c. inorganic fertilizer costs are highest for MECH 162 seeds,
d. irrigation costs are lowest for MECH 12 seeds, and
e. bollworm spray use and cost is lowest for the official MECH 162 variety.
This also brings us to another study done by Centre for Science and Environment (CSE) which has found pesticides in the blood of farmers in Punjab. The pesticides are 16 – 605 times higher than those found in blood of US farmers. The connected news can be found at.
http://www.financialexpress.com/fe_full_story.php?content_id=93164
Evidence suggests that certain type of pesticides when used consistently over a long period can cause brain degeneration.
What does this conclude?
1. That the Indian farmers tend to abuse the pesticides and use more of it, more often than recommended?
2. Should India revert to organic farming? ….. will organic India able to feed the ever increasing population, OR
3. Should India adopt a technology which would enhance the productivity of agriculture is safe of the farmers, humans and the environment?
The facts is that the farmers world wide planted the billionth acre in genetically modified crops in May 2005 is a proof it itself that the technology is good and safe. The Genetically Modified crops are certified by the Food and Drug Administration (FDA) as safe to eat and plant. FDA is a highly respected regulatory agency that would not compromise the health of consumers of genetically modified food. Millions of humans have consumed commercially grown GM foods since 1996 without a single health problem. Because the products are safe and on the shelves of super stores like Wal-mart etc, no ‘Genetically Modified’ labelled products can be seen. This speaks highly of the safety measures taken by today's food scientists and seemingly underscores the credibility of the industry. AND still, the controversy continues.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
As the summer peaks, the prices of coarse grains also seem to peak. Prices of almost all coarse grains including small grains is showing an upward trend in India, while in US the prices are softening due to good sowing and emergence reports. The report received in the first week of June reported over 95 percent sowing and 83 percent emergence. The CBOT prices were reported at $86.00 per MT, while the FOB values were $103 per MT for August delivery. This week the CBOT closed $2.11 per bushel, ($83.05 per MT) for July delivery. FOB values worked out close to $97 per MT.
The Indian prices on the other hand have been going up as the monsoon controversy heats up. Yellow Maize average rates were reported at Rs.6250 – Rs.6480 ($143 - $149) per MT at market yards. The price for Kesari (Dark Yellow) were reported little lower at Rs.6125 ($140) per MT. Added to this the mandi costs and delivery costs, the prices of yellow corn will be much higher than anticipated. The prices were the highest in Gujarat and touched Rs.6525 ($150) per MT at the market yard. Prices were however lower in Bihar and some parts of Andhra Pradesh and were report at Rs.4800 ($109) per MT and Rs.5100 ($117) per MT respectively.
With the wheat production, procurement and stock controversy currently ongoing, any discussion on maize prices and supplies would be a distant dream. While Shri.Sharad Pawar, Minister of Agriculture, Govt. of India has indicated that if need be wheat will be imported, the Managing Director of Food Corporation of India has indicated that there are ample stocks in the country to fulfil the needs.
Maize is the third most important crop in the country and the top coarse cereal and as prices go sky rocketing, the end users (Poultry farmers, starch manufacturers) get affected and not the consumers directly. Does that mean that the grain is not important? To the people involved in its production and use, it is probably more important than thought. At current FOB values and lower freight costs, importing maize for the costal areas without duty would be feasible and this will help the poultry as well as the starch sector.
Prices of other coarse cereals like Barley, Pearl Millet (Bajra) and Grain sorghum have also firmed up. While Barley was traded at highest value of Rs.6750 ($155) in UP, Pearl Millet was traded at highest value in Andhra Pradesh at Rs.6000 ($138) per MT. Grain Sorghum was traded at highest value in Rajasthan at Rs.7960 ($183) per MT. Grain Sorghum in Maharashtra was traded at Rs.7300 ($168) per MT.
USDA’s report estimates world ending stocks at 121 MMT for the year 2005-06, lower than 2004-05. China’s ending stocks have also been reported at 25.6 MMT for the year 2005-06, lower than 35.4 MMT for the year 2004-05.
Biotech controversy raked up again
While the world is going forward and countries like Kenya have started trials with GM maize to counter the attack of stem borer, which effect 20% of their production and also Zimbabwe which till last year had rejected the offer for food aid due to GM crops, pleaded with World Food Program for food aid.
NGO’s is India have raked up the controversy again by crying foul on the issue of biotechnology and have requested for a complete ban on biotech products, which is unrealistic.
Several reports suggest that the Indian R&D proposal is already delayed and with such calls, it is an effort to derail the growth of the country as a whole. Independent study done at University of Reading, UK, compares official bt hybrids, unofficial and also non bt varieties. The study suggests that:
a. Bt varieties significantly outperform unofficial varieties in terms of gross margin
b. Official Bt varieties produced the highest yields, from 20-37% greater than unofficial varieties
c. inorganic fertilizer costs are highest for MECH 162 seeds,
d. irrigation costs are lowest for MECH 12 seeds, and
e. bollworm spray use and cost is lowest for the official MECH 162 variety.
This also brings us to another study done by Centre for Science and Environment (CSE) which has found pesticides in the blood of farmers in Punjab. The pesticides are 16 – 605 times higher than those found in blood of US farmers. The connected news can be found at.
http://www.financialexpress.com/fe_full_story.php?content_id=93164
Evidence suggests that certain type of pesticides when used consistently over a long period can cause brain degeneration.
What does this conclude?
1. That the Indian farmers tend to abuse the pesticides and use more of it, more often than recommended?
2. Should India revert to organic farming? ….. will organic India able to feed the ever increasing population, OR
3. Should India adopt a technology which would enhance the productivity of agriculture is safe of the farmers, humans and the environment?
The facts is that the farmers world wide planted the billionth acre in genetically modified crops in May 2005 is a proof it itself that the technology is good and safe. The Genetically Modified crops are certified by the Food and Drug Administration (FDA) as safe to eat and plant. FDA is a highly respected regulatory agency that would not compromise the health of consumers of genetically modified food. Millions of humans have consumed commercially grown GM foods since 1996 without a single health problem. Because the products are safe and on the shelves of super stores like Wal-mart etc, no ‘Genetically Modified’ labelled products can be seen. This speaks highly of the safety measures taken by today's food scientists and seemingly underscores the credibility of the industry. AND still, the controversy continues.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Monday, June 06, 2005
Coarse grain prices and monsoon in India; Making consumers aware about safe meat handling; Big growth in crop biotechnology expected
Coarse grain prices and monsoon in India
The first week of June saw the first rally in prices of coarse cereals. Almost all the coarse cereals traded were at prices higher than in last week of May 2005.
Pearl Millet (Bajra) prices of different varieties reportedly were averaging between a low of 129 to a high pf 155 per MT. (Average $140 per MT). At the state level; Bajra was traded at highest value in Gujarat at $142 per MT, while in Karnataka the commodity sold for a lowest value of $120 per MT.
Maize prices were also reported higher than the last week and crossed the $200 per Mt limit in Gujarat, were stocks of yellow maize were reported to be traded at $201 per MT. Prices in other markets were ranging from a high of $147in Rajasthan to a low of $109 per MT in Bihar, where stocks are still coming in regularly. The Future markets also reported small gains. June supplies were traded at $123, while for July and August the values were $126 and $133 per MT respectively. US corn prices were reported little soft and CBOT closed at $2.185 per bushel ($86.00 per MT). FOB values (US Gulf) would be close to $103 per MT
Barley prices also showed an upward trend and the average prices based on different varieties available were traded at an average price of $130 per MT, which was higher than the last week average of $126 per MT. Within the states, Barley prices were highest in Punjab and the commodity was traded at $149 per MT. The lowest prices was in Haryana at $132 per MT.
Sorghum prices also went up and the hybrid sorghum which was trading at $112 per MT till few weeks back was traded at $123 per MT. Also prices in Gujarat went up by $20 to $178 per MT. US prices (FOB US gulf) are reported to be at $107 per MT.
As the commodity prices are going up, Confederation of Indian Industries (CII) in its annual forecast had projected the agriculture output to be higher by 3%, a one percent increase when compared to last year. This is based on the assumption that the monsoon would be near normal and the more quality seeds will be distributed this fiscal (2005-06).
Another report by the Centre for Mathematical Modelling and Computer Simulation has forecast lower rains in the first half of the monsoon season. According to the report, the monsoon is likely to be deficient by 34%. Its earlier forecast was for a 22% excess rainfall. In April the forecast by the meteorological department was for a 98% rainfall during Southwest monsoon. What would happen to agriculture will be a big question this year. India has a four month monsoon season and a large part of agriculture is dependent on monsoon.
Making consumers aware about safe meat handling
Providing safe food and meat to the consumers should be a priority and this is possible by following principals of GMP, GHP, HACCP in the place of slaughter and during supply to retail counters. While the company will try to do its best to make safe meat and meat products available to its consumers, the consumers also need to be made aware on how to maintain quality of meat and cook meat. Though the meat would leave the processor in good shape and will also be taken home is good condition, mistakes often happen in kitchen during storage and cooking leading to quality deterioration, bad product and sickness.
The American Meat Institute Foundation, National Chicken Council and National Turkey Federation have released a brochure which aims to bridge this key knowledge gap among consumers: the proper internal temperature to ensure safety.
The brochure addresses important strategies for ensuring food safety, including:
• Keep hot foods hot and colds foods cold — bacteria multiply when foods reach the temperature "mid-range."
• Don't cross contaminate — separate raw and cooked foods and wash any items that have touched raw meat and poultry, like cutting boards and utensils, with hot soapy water following use.
• Discard marinade used on raw meat and poultry.
• Use a clean plate to remove cooked foods from the grill. Never use the same plate that held raw meat and poultry unless it has been thoroughly washed in hot soapy water.
New research has indicated that colour is not a good indicator of doneness and that instant-read thermometers must always be used.
The brochure may be downloaded using the link given below:
http://www.meatsafety.org/safehandling/Brochuresafehandling.pdf
While in India, Pakistan and Bangladesh barbequed chicken (chicken tikka) and products from minced meats (minced meat kababs) are widely cooked and relished, it is always thought that the cooking method makes such products safer, which is not the case. Many a times it is seen that the meat remains raw from inside, with juices flowing. Whole, intact muscle cuts of meat and poultry are sterile inside and bacteria remains on the outside. However, when these cuts are ground, external bacteria can be distributed throughout the product, making it imperative ground meat and poultry is cooked thoroughly.
Use of proper systems during processing, retailing and handling during cooking will make products more safe.
Big growth in crop biotechnology expected
Bio Economic Research Associates, or bio-era™, a leading independent research and advisory firm providing analysis on the future of the global bio economy has released a new research report, entitled “Agbiotech 2005: Regional Trends in Adoption and Acceptance”
The report summarizes recent developments in Africa, Asia-Pacific, Latin America, North America and Europe—with in-depth coverage of key countries in each region, especially for rapidly developing countries in Africa, Asia-Pacific and Latin America.
Key Findings of the report include:
• New biotech policies likely to be introduced this year in India and China will be of tremendous importance to the future of GM crops and agriculture in Asia. GM crop acceptance is growing much faster in developing world, but there are controversies and opposition. If these controversial issues can be taken care of, companies and governments will be able to win sufficient public confidence to open the way for much greater and more rapid value creation. Most important the farmers will benefit from these news policies
• New legislation, regulations, and commercial agreements coming into place in 2005 in Latin America and Asia make this a momentous year for agricultural biotechnology. The frameworks now being put in place will pave the way for significant further expansion of GM crops in these regions. But key stakeholder groups, still have the potential to shift the trajectory of events.
• Based on an evaluation of technical, commercial, and regulatory factors affecting the business environment for GM crops, Bio era rates the United States, South Africa, Paraguay, Egypt, Canada, Brazil, and the Philippines as the nations most supportive of GM crop development.
• Despite the growth in GM crop adoption in some regions, the possibility of uniformly open markets for GM crops is fading. Regulations governing GM crops and food products in Europe and Japan remain highly restrictive, even as central governments take formal steps toward new GM crop approvals. These regulations cast a long shadow into the international market for key crops.
In a related development, the Confederation of Indian Industry (CII) has called for shorter regulatory approval of crop biotechnology meant for exports (through export zones), while ensuring that there is no leakage into the domestic market.
The confederation is of the view that export opportunities through SEZ/AEZ in crop biotech should be encouraged by following a shorter regulatory approval of one year duration while ensuring that there is no leakage into domestic environment of the GM crop meant for export.
The chamber is of the view that the laws should be harmonized to ensure a world-class regulatory and patent regime. Also the biotech laws need to be harmonized with the Draft Food Safety and Standards Bill 2005.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
The first week of June saw the first rally in prices of coarse cereals. Almost all the coarse cereals traded were at prices higher than in last week of May 2005.
Pearl Millet (Bajra) prices of different varieties reportedly were averaging between a low of 129 to a high pf 155 per MT. (Average $140 per MT). At the state level; Bajra was traded at highest value in Gujarat at $142 per MT, while in Karnataka the commodity sold for a lowest value of $120 per MT.
Maize prices were also reported higher than the last week and crossed the $200 per Mt limit in Gujarat, were stocks of yellow maize were reported to be traded at $201 per MT. Prices in other markets were ranging from a high of $147in Rajasthan to a low of $109 per MT in Bihar, where stocks are still coming in regularly. The Future markets also reported small gains. June supplies were traded at $123, while for July and August the values were $126 and $133 per MT respectively. US corn prices were reported little soft and CBOT closed at $2.185 per bushel ($86.00 per MT). FOB values (US Gulf) would be close to $103 per MT
Barley prices also showed an upward trend and the average prices based on different varieties available were traded at an average price of $130 per MT, which was higher than the last week average of $126 per MT. Within the states, Barley prices were highest in Punjab and the commodity was traded at $149 per MT. The lowest prices was in Haryana at $132 per MT.
Sorghum prices also went up and the hybrid sorghum which was trading at $112 per MT till few weeks back was traded at $123 per MT. Also prices in Gujarat went up by $20 to $178 per MT. US prices (FOB US gulf) are reported to be at $107 per MT.
As the commodity prices are going up, Confederation of Indian Industries (CII) in its annual forecast had projected the agriculture output to be higher by 3%, a one percent increase when compared to last year. This is based on the assumption that the monsoon would be near normal and the more quality seeds will be distributed this fiscal (2005-06).
Another report by the Centre for Mathematical Modelling and Computer Simulation has forecast lower rains in the first half of the monsoon season. According to the report, the monsoon is likely to be deficient by 34%. Its earlier forecast was for a 22% excess rainfall. In April the forecast by the meteorological department was for a 98% rainfall during Southwest monsoon. What would happen to agriculture will be a big question this year. India has a four month monsoon season and a large part of agriculture is dependent on monsoon.
Making consumers aware about safe meat handling
Providing safe food and meat to the consumers should be a priority and this is possible by following principals of GMP, GHP, HACCP in the place of slaughter and during supply to retail counters. While the company will try to do its best to make safe meat and meat products available to its consumers, the consumers also need to be made aware on how to maintain quality of meat and cook meat. Though the meat would leave the processor in good shape and will also be taken home is good condition, mistakes often happen in kitchen during storage and cooking leading to quality deterioration, bad product and sickness.
The American Meat Institute Foundation, National Chicken Council and National Turkey Federation have released a brochure which aims to bridge this key knowledge gap among consumers: the proper internal temperature to ensure safety.
The brochure addresses important strategies for ensuring food safety, including:
• Keep hot foods hot and colds foods cold — bacteria multiply when foods reach the temperature "mid-range."
• Don't cross contaminate — separate raw and cooked foods and wash any items that have touched raw meat and poultry, like cutting boards and utensils, with hot soapy water following use.
• Discard marinade used on raw meat and poultry.
• Use a clean plate to remove cooked foods from the grill. Never use the same plate that held raw meat and poultry unless it has been thoroughly washed in hot soapy water.
New research has indicated that colour is not a good indicator of doneness and that instant-read thermometers must always be used.
The brochure may be downloaded using the link given below:
http://www.meatsafety.org/safehandling/Brochuresafehandling.pdf
While in India, Pakistan and Bangladesh barbequed chicken (chicken tikka) and products from minced meats (minced meat kababs) are widely cooked and relished, it is always thought that the cooking method makes such products safer, which is not the case. Many a times it is seen that the meat remains raw from inside, with juices flowing. Whole, intact muscle cuts of meat and poultry are sterile inside and bacteria remains on the outside. However, when these cuts are ground, external bacteria can be distributed throughout the product, making it imperative ground meat and poultry is cooked thoroughly.
Use of proper systems during processing, retailing and handling during cooking will make products more safe.
Big growth in crop biotechnology expected
Bio Economic Research Associates, or bio-era™, a leading independent research and advisory firm providing analysis on the future of the global bio economy has released a new research report, entitled “Agbiotech 2005: Regional Trends in Adoption and Acceptance”
The report summarizes recent developments in Africa, Asia-Pacific, Latin America, North America and Europe—with in-depth coverage of key countries in each region, especially for rapidly developing countries in Africa, Asia-Pacific and Latin America.
Key Findings of the report include:
• New biotech policies likely to be introduced this year in India and China will be of tremendous importance to the future of GM crops and agriculture in Asia. GM crop acceptance is growing much faster in developing world, but there are controversies and opposition. If these controversial issues can be taken care of, companies and governments will be able to win sufficient public confidence to open the way for much greater and more rapid value creation. Most important the farmers will benefit from these news policies
• New legislation, regulations, and commercial agreements coming into place in 2005 in Latin America and Asia make this a momentous year for agricultural biotechnology. The frameworks now being put in place will pave the way for significant further expansion of GM crops in these regions. But key stakeholder groups, still have the potential to shift the trajectory of events.
• Based on an evaluation of technical, commercial, and regulatory factors affecting the business environment for GM crops, Bio era rates the United States, South Africa, Paraguay, Egypt, Canada, Brazil, and the Philippines as the nations most supportive of GM crop development.
• Despite the growth in GM crop adoption in some regions, the possibility of uniformly open markets for GM crops is fading. Regulations governing GM crops and food products in Europe and Japan remain highly restrictive, even as central governments take formal steps toward new GM crop approvals. These regulations cast a long shadow into the international market for key crops.
In a related development, the Confederation of Indian Industry (CII) has called for shorter regulatory approval of crop biotechnology meant for exports (through export zones), while ensuring that there is no leakage into the domestic market.
The confederation is of the view that export opportunities through SEZ/AEZ in crop biotech should be encouraged by following a shorter regulatory approval of one year duration while ensuring that there is no leakage into domestic environment of the GM crop meant for export.
The chamber is of the view that the laws should be harmonized to ensure a world-class regulatory and patent regime. Also the biotech laws need to be harmonized with the Draft Food Safety and Standards Bill 2005.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
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