Commodity Markets Stable; DDG's - a valuable source of protein & energy; Hygiene standards for Indian Street Food

Commodity markets stable

Due to good rains in Khariff season and better prospects in Rabi crops has raised the estimates for agriculture growth to over 4% in 2007/08. As the Minimum Support Prices (MSP) of wheat has been increased, there are expectations that farmers will grow more wheat (75.5 MMT) and sell it to government at the higher price.

Maize

For the past two weeks the maize prices at the market yard have been stable at Rs.6600 – 6650 per MT and higher than the MSP offered by GOI of Rs.6200 per MT. The prices are similar to last year prices. There are strong indications of export of maize to SEA region and reports indicate FOB (India port) prices of USD 220 – 230 (Rs.8690/9085) per MT or CNF values of USD 240 – 245 (Rs.9480 – 9677) per MT. Markets are experiencing higher arrivals after the festival season, which is keeping the prices stable despite higher demand by poultry/starch and exporters.

Pearl Millet (Bajra)

The prices have remained stable for last two weeks at Rs.6500 per MT and this week are down by 18% over last year. Against maize prices, Pearl Millet is trading at 2% lower values.

Sorghum (Jowar)

This week sorghum prices are down by 3% over last week to Rs.9450 per MT, but are still higher than last year by almost 27%. There have been some queries for export of Sorghum, but due to poor availability and high prices, it will be difficult to export sorghum from India. Prices are also higher than maize by 43%.

Barley

Prices have short up to Rs.11000 per MT at the market yard. Availability is poor due to higher exports. Prices are over 30% higher than last year prices. Market reports indicate an increase in malt demand by brewery industry as the growth is estimated at 15-20% and this growth is likely to continue for the next couple of years.

USDA in its last report dated Nov 09, 2007 has reduced the maize production in US from 338.29 MMT to 334.48 MMT due to lower anticipated yields. The average price to the US farmer though has been increased from USD 114.16 – 137.78 per MT to USD 125.97 – 149.59 per MT.

The maize prices on CBOT were down for Dec / Mar deliveries at $149.36 and $156.05 per MT against last week’s $156.26 and $159.05, down by 4.4% and 1.88% respectively.

Dried Distiller’s Grains with Soluble – a valuable source of protein and energy

New reports indicate that the energy value of DDG’s is close to 3000 Kcal/kg (through fat) and the protein value is about 27 – 28% and fibre is about 5.8 – 6%. Though the product is low in Lysine, it can be used in layer, dairy, swine, and broiler rations without any problems and lysine can be added. On a recent visit to some of the dairy farms in USA, the DDG’s was being used at 5% levels in milking and dry animal rations. Current prices are about 95% of corn values, and this is likely to remain as the corn prices are going up and demand is also soaring.

There are still some issues that might need to dealt with – like flow-ability – which experts tell is not a problem if the product is cooled for at least 24 -36 hrs before dispatch. In addition, making pellets of DDG’s prior to dispatch will solve the problem of handling and flow-ability to a great extent. Work is being done at Northern Crop Institute, Fargo, North Dakota, under Dr.Kim Koch to pellet DDG’s. On the product consistency, It is recommended that buyers should source the material from one / two ethanol plants so as the product is consistent. As the new technology of fractionalization comes online and other plants start using the same, the product will be more consistent.

Hygiene standards for street food in India

Indian love to eat out – specially on the streets, be in tangy traditional North Indian ethnic foods or omelette's, boiled eggs in winter or meat soups in winter or other dishes year round, which may or may not contain meat. Ministry of Food Processing Industries along with Ministry of Health is working on hygiene standards for street food, wherein the vendors will need to have special carts which will have surfaces that could be cleaned, water for cleaning the utensils (or use throw away) and also have some systems to keep the cold food cold like meats etc and hot food hot.

The question still remains on the sourcing of food. If the food raw material like mat including chicken etc is not sourced from a certified supplier, keeping it in clean environment is not going to do much good as the bacterial contamination at the point of slaughter or delivery would be enough to make the product unsuitable for consumption. It is important that the ministry looks at the complete package to make street food more safer and making it mandatory for vendors to source food raw material like meat etc from certified suppliers.

The implementation of the integrated food law is one step in this direction and it would be beneficial for companies to sponsor such street food carts.

Amit Sachdev

India Representative

U S Grains Council

bluecross303@gmail.com