Indian traders, in a bid to break the Turkish monopoly in supply of poppy seeds and make available the commodity at low prices in the domestic market, are trying to import blue poppy seeds from the Czech Republic, for which they have yet to receive the permission from the Indian Narcotic Control Board.
They said the prices of Czech blue poppy seeds are up from $1,100 to $1,500 a tonne, due to end of current crop. New crop, projected to be lower, will start in July. This year, Turkey has had a bumper crop of 18,000-20,000 tonnes against 7,000 to 8,000 tonnes last year and, consequently, prices are likely to dip to $2,500-$3,000 from the current $5,700 a tonne.
Awaiting clearance
According to traders, this year India might import blue poppy seeds from Czech, for which all required documents have been submitted to the Narcotic Control Board, Gwalior for clearance. “It is going to be a boon for the Indian consumers as it can be sold at Rs 180 a kg compared with Rs 430 a kg for white. The taste of both blue and white is same.”
India imports up to “90 per cent of Turkey’s crop every year and the Centre has reduced import duty on poppy seeds to 25 per cent from 47 per cent recently to encourage legal imports and stop smuggling through Pakistan and Nepal,” said the London-based the Public Ledger.
However, traders in Bangalore suggested that “the prudent solution to arrest smuggling and other fraudulent imports of poppy seeds is to fix kilo-duty at Rs 40 a kg for white and Rs 20 a kg for blue poppy seeds”.
Sporadic buying
According to the Public Ledger, sporadic buying by Indian traders in both origins is pushing up values. “Buyers who have stocks in India are also trying to buy higher to keep the price level high.”
Those holding stocks in India are also keen to keep prices at an elevated level. Limited availability in Turkey, where dealers are holding onto supplies as long as they can ahead of the new crop expected in July, is also supporting prices, the PL report said. “(The last remaining) stocks are finishing and people are trying to sell higher,” it said.
Poppy seed prices in the Czech Republic have jumped in the past week, tracking rises in the Turkish market, as increased demand from India reduced the remaining supplies from last year’s crop. Czech blue poppy seeds increased in value to €950 ($1,229) a tonne f.o.b. in the week ending May 25, up from €830 a tonne the previous week, but still considerably off the yearly high of €2,290 a tonne set at the start of the year, the PL said.
The rise in Czech prices was largely as a result of movement in the Turkish sector, where white 99.9 per cent pure f.o.b Turkey poppy seeds continued to gain in value to a 2009 high of $5,700 a tonne last week, compared with $4,800 a tonne in the week commencing May 11.
The 2009 Czech poppyseed crop is expected to be lower than last year’s volume of around 59,000 tonnes and these new stocks are unlikely to hit the market until August. Traders are, therefore, keen to keep the remaining volumes they have been selling at a decent price.
Fraudulent imports
Meanwhile, the Bangalore-based importers of poppy seeds alleged that fraudulent imports of white poppy seeds of Afghan origin via Turkey were taking place. They said that the authorities are yet to grant permission for import of blue poppy seeds from the Czech Republic, where it is grown 100 per cent legally, so as to cater to the need of the Indian consumers at low prices.
They said the Indian production of poppy seeds is also estimated to be significantly higher this year, but much short of the domestic demand.
Source : Business Line