Commodity prices - a mixed bag; Rising Food prices - countries open to import GM Commodities; Retail Chains need to train personnel

Commodity prices - a bixed bag

Maize prices were down by about 1.3% this week to Rs.7450 per MT, possibly following the report of new outbreak of bird flu in West Bengal. The prices were about 3.6% higher than last year. Prices were lower at almost all delivery centres across the country.

Pearl Millet (Bajra) prices were down by about 3% this week to reach Rs.6748 per Mt at the market yard. The prices are lower than last year by about 3%. Against maize the prices are lower by 9.4%. The availability is good in northern part of the country, making is possible for the egg producers using the commodity in rations to reduce cost of feed and thus cost of production of eggs.

Sorghum (Jowar) prices have jumped to RS.9565 per MT, over 9.5% higher than last week and also 12.8% higher than last year. Against maize the prices are higher by 28.4%.

Barley prices came down this week to Rs.10060 per MT at the market yard, just about 2.1% lower over last week. Prices are higher than last year by 21.7%. Barley prices this week at Jaipur were down slightly to Rs.12094 per MT. Futures for April, May , June and July were up to Rs.10950, Rs.11360, Rs.11490 and Rs.10644 per MT.

Prices of Corn on CBOT was up this week for Mar, May and July to $214.71 (+4.71), $220 (+5.14), $224.87 (+4.87) respectively.

Rising food prices – countries open to import GM commodities

In the wake on increasing food prices countries like Korea have started accepting the Genetically Engineered Food crops, including corn.

South Korea, last month purchased its first GM corn for use in foods. Earlier GM products were allowed to be used in animal feeds. Korea will be using GM corn to produce starch and sweetener, ingredients that are widely used in a range of food products, like confectioneries, beverages and ice creams.

Demand for commodities like Soybean and corn in increasing for feeding livestock and increased use in bio-fuels production. In addition, farmers are also increasingly planting more GM crops, due to benefits offered by the technology, thus reducing the availability of non-GM commodities.
In countries like, Philippines, biotech corn is sold at premium prices because of the higher grain quality, encouraging farmers to invest in GM seeds.

In some cases the price differential between GM and non-GM is high, that making a decision in favour of new technology makes business sense.

The Korea Food and Drug Administration has designated crops such as soybeans, corn and bean sprouts and 31 foods made with them subject to GM labelling. But they are exempt from GM labelling if they contain less than 3 percent amount of GM substance or if their final products carry no GM DNA or protein. Cooking oil made with genetically modified soybeans is also exempt from GM labelling requirements, because only fat is extracted during the process and such cooking oil carries no GMO protein.

Korea allowed imports of the 23 GM corn varieties whose safety is guaranteed by U.S. food safety authorities and which are cleared for us in the countries of origin for feed and food.

GM crops covered 114 million hectares around the world last year, an increase of 13% over the year, according to ISAAA. Twenty-three countries have approved growing of biotech crops while 29 countries are allowed to import them. The US is the largest exporter of GM crops.
EU regulators are also likely to approve imports of a genetically modified (GM) maize type this month that should help livestock farmers secure extra supply of raw material to feed their animals.

Animal feed makers and livestock farmers have been unable to pass on soaring costs of grain over the past year to retail consumers.

Retail chains need to train personnel

While retail chains have come up across the country and there is no doubt have provided convenience to consumers to make shopping for food a good experience, it is important that the people managing the food SKU’s are trained properly on the issues that affect the product.

There are several occasions when the product is wrongly displayed (frozen product in chilled section or vice a versa), as was recently seen in Calcutta. Even vegetables that need to kept at Zero Degree C, if kept at 4 deg C, loose moisture and the quality deteriorates.

It is important for the staff to understand the temperature requirements of each and every fruit, vegetable that is available at the shop and the staff should read the labels on the product before it is put on display at the counter.

More information about the temperature requirements and postharvest techniques can be downloaded from the link below.
http://postharvest.ucdavis.edu/

If the product has gone bad, deteriorated due to the temperature shock, it must be removed from the shelf and the consumers advised that the product is no longer available for sale.

Amit sachdev
India Representative
U S Grains Council

bluecross303@gmail.com