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