Commodity prices stable; GM Food labeling in India

Commodity prices stable

This week GOI canalized maize exports. Till recently maize exports were open and traders were exporting maize to various locations, including South East Asian markets. With the new policy, all exports of maize will be though State Trading Corporation (STC), Project Engg. Company (PEC), NAFED or MMTC. The details can be found at the following link.

http://dgftcom.nic.in/exim/2000/not/not06/not5006.htm

This canalizing will sure be a deterrent to export and will work as a DEFACTO ban on maize exports from India.

New arrivals have of maize crop have started in Jharkhand, Orissa and a sentiment of a bumper crop in Andhra Pradesh, Bihar, rumours of expected ban on maize futures (similar to wheat and rice), is putting a pressure on the prices, which are stable.

The maize prices this week were just about 0.7% higher than last week, reaching Rs.7300 – 7400 per MT level. The prices though are about 24% higher than last year.

The future prices on maize were Mar Rs.7530; Apr Rs.7610, May Rs.7720, Jun Rs.7880. While the spot prices at various locations were Davangere Rs.7439, Nizamabad Rs.7413, Ratlam Rs.8400, Karimnagar Rs.7499 (All prices on per ton basis at the respective sites).

Pearl Millet (Bajra) prices were up by 3% over last week at Rs.7200 – 7300 per MT and just about 1.5% lower than Maize. Layer farmers in North India are using Pearl Millet at 10% levels in feeds, which has helped keeping the feed cost stagnant for almost one month. Pearl Millet prices were about 13.8% higher than last year.

Sorghum prices were 10.6% lower than last week at 8100 – 8150 per MT on the average, but the prices are higher than last year by 10.6% and also higher than maize by 10.5%.

Barley prices were 15% lower than last week at Rs.7000 – 7100 per MT at the market yard.

GM Food labeling in India

Based on the information available from the Ministry of Health, the ministry is keen to amend the Prevention of Food Adulteration Rules, 1955 to introduce the provision of mandatory labeling of genetically modified (GM) foods. The implantation of the law was deferred last year after the Foreihn policy was announced.

The new provision under the Foreign Trade (Development & Regulation) Act, 1992, defines the GM foods as those composed of or containing genetically organisms obtained through modern biotechnology. Even the GM processed food imported or produced domestically would be labeled, under the new law.

Big questions – would it mean all imported soy oil is labeled, also all vegetable oil which uses cotton seed oil will need to be labeled as well.

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

Mar 12, 2007