Stability is commodity prices; Agri Biotechnology gearing to provide benefits to consumers; Labeling of GM products in India

Stability is commodity prices

Average corn prices for the week dropped another $3.8 per MT at the market yard to $122.5 per MT from last weeks $126.3 per MT. Also the price is lower than last year’s price of $126 per MT at the market yard. This is probably due to new arrivals and low demand from the poultry sector as an aftermath of Avian Influenza.

The average prices in some markets like Bihar, Maharashtra and Karnataka increased a bit. Major increase was seen in Karnataka of about $7 per MT and this could be an anomaly. Prices in Rajasthan dropped to $133 per MT from last week’s $141 per MT.

Barley prices averaged $144 per MT this week and is about $5 per Mt higher than last week. The price is also higher by 12.5% than last year’s $128 per MT at the same time.

Sorghum (Jowar) prices are stable at $159 per MT and be lower by 3.04% than last year’s $164 per MT

Pearl Millet (Bajra) prices moved up by $5 per MT to $155 per MT and is higher by 11.51% than last year’s $139 per MT.

Both Pearl Millet and Sorghum prices are still much higher than average corn prices in India by 27-30%, making it difficult for endusers to use these commodities.

Corn on CBOT for May delivery closed at $92.88 per MT, on Friday, lower by almost $2.76 per MT than its previous close a week ago.

Agri Biotechnology gearing to provide benefits to consumers

Companies are betting that the worldwide public will be less resistant to biotech crops that yield consumer benefits and to the use of biotech enzymes and microbes to aid in the production of foods, chemicals and biofuels, a field known as industrial biotechnology.

The biotech industry believes that the first set of crops aimed at the farming community is just a scratch on the surface and there are more products in offing specially for consumers. The new biotechnology developments are likely to sweep production agriculture, food manufacturing, the pharmaceutical industry and myriad industrial areas.

With crude oil touching $70 per barrel, there are more concerns about high oil prices, climate change etc and more work is being done in this direction.

In Australia, scientists are trying to breed a new type of sugar cane so the entire cane, not just the sugar, can be processed cheaply into ethanol. The cane would produce its own enzymes to break the fiber in the cane.

In the United States, biotech companies are working to breed crops that would produce the heart-healthy omega-3 fatty acids that are now found primarily in fish.

Then there will be milk, rather clear milk, made by using enzymes. The milk would not coagulate and can be used to blend with juices to make high protein fruit drink.

The above are just a few examples of the way that biotech sector is changing and is looking to alter crops and food products in ways that will be appealing to consumers and will be beneficial to them.

Labeling of GM products in India

The labeling of food products containing genetically modified products and food products prepared by using genetically modified products or food products containing additives that have been prepared by using genetically modified products is a contentious issue. How it will end up being implemented is still a question. GOI has come out with a draft notification which would make it mandatory for all food products (domestically produced or imported) of the above category to carry a label of GM food.

Few examples that could need to be labeled include, wine, cheese, breads as they are prepared using yeast or material which has been genetically modified, all vegetable oils including those containing imported (soy oil) and domestic (containing cotton seed oil).

Another question that needs to be answered is, will all products of animal origin particularly, milk, its value added products (butter, ice cream etc) and Indian milk sweets (Rossogulla, Ras Malais etc) and cottage cheese (paneer) will also need to be labeled as they are produced by using feed that contains cotton seed or cotton seed that is all co-mingled and is a genetically modified product.

In addition to the above labeling requirement, the import policy also stipulates that all GM products must be cleared by GEAC before they are sold in the market and each consignment must be cleared by GEAC. This would mean slow movement of oil in the market, prices hikes for the consumers and congestion at the ports for clearance of the consignments.

The big question though is, who will benefit from this labelling requirement and what will be the achievement, when there is enough knowledge in the place to suggest that the product is safe and was being imported or used domestically for some time. In addition, does India have the infrastructure to test all the consignments of products that contain GM products and are being manufactured using GM products.

An ideal situation would be to clear all GM products and events that are cleared in country of origin for marketing and use in foods and feeds.

Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com

April 14, 2006