The Centre will take a call on easing plant quarantine restrictions currently applicable on wheat imports once a clear picture emerges on the size of the paddy crop due for harvest from next month.
“We are still awaiting reports from the States on their assessment of the standing crop, from which a reasonable estimate of total rice availability in the country can be drawn probably by the month-end. The Food Ministry can then indicate whether or not imports are required, following which the necessary relaxations in the Plant Quarantine (Regulation of Import into India) Order of 2003, may be issued by the Plant Protection Division in the Agriculture Ministry,” sources in the Krishi Bhawan told Business Line.
foodgrain stocks
The Centre’s foodgrain stocks position is more than comfortable now, with Food Corporation of India and the State agencies holding 316.23 lakh tonnes (lt) of wheat and 185.04 lt of rice as on July 31. The new marketing season from October 1 is likely to open with over 285 lt of wheat and 160 lt of rice stocks – well above the minimum buffer norm of 110 lt and 52 lt for that date.
Despite all this, there is a view within the Government favouring imports to forestall any possibility of price rise on account of the country’s rice output taking a hit of 100 lt (perhaps even more) this year.
One way to do this is to encourage flour mills in the South to import wheat rather than source it from Punjab, Haryana or Uttar Pradesh (UP). “Doing so will boost wheat availability in the North (by discouraging its movement to the South) and to that extent relieve the pressure on rice supplies,” the sources pointed out.
Wheat imports
At prevailing price parities, wheat imports are feasible. Southern mills are currently sourcing regular quality dara wheat from UP at around Rs 13,700 a tonne (mill delivered), with better quality ‘Lokwan’ grain from Madhya Pradesh and Gujarat costing Rs 800-1,000 more.
On the other hand, Black Sea (Russia/Ukraine) origin wheat can be imported at below $200 or Rs 9,592 a tonne (cost & freight), while the landed price of Australian Prime Wheat (which is comparable to ‘Lokwan’) in Chennai would be roughly $260 or Rs 12,470 a tonne.
“Even if you add Rs 1,000-1,200 a tonne towards port handling and freight charges, the imported wheat will today be Rs 1,500-3,000 a tonne cheaper than domestically sourced grain,” the sources added.
However, imports may not be possible in the current quarantine regime, which stipulates wheat consignments to be free from any ergot or Dwarf bunt fungal pathogens. The Plant Quarantine Order also disallows presence of 31 exotic weed species listed under a specific Schedule-VIII. On top of these is the requirement for imported cargo to be fumigated with methyl bromide at the port of loading.
These restrictions were significantly diluted during 2006-07 and 2007-08 when the country imported some 72 lt of wheat. The revised quarantine guidelines pertaining to wheat imports, issued on July 3, 2006, permitted the consignments to contain up to 0.01 per cent ergot and 0.005 per cent Dwarf bunt, besides an average 100 Schedule-VIII weed seeds for every 200 kg of samples drawn.
Further, overseas suppliers were given the option to spray aluminium phosphide (against the presumably less environment-friendly methyl bromide) before export. However, all these relaxations were valid only till June 30, 2007.
“The call to be taken is whether or not to restore the July 3, 2006 relaxations. The decision ultimately will have to be a political one,” the sources admitted.
Source : Business Line