From Chairman's Desk

April 2019



Dear friends,

 

Exports in March 2019 were USD32.55 Billion, as compared to USD29.32 Billion in March 2018, exhibiting a positive growth of 11.02 per cent.

 

Cumulative value of exports for the period April-March 2018-19 was USD331.02 Billion as against USD303.53Billion) during the period April-March 2017-18, registering a positive growth of 9.06 per cent.

 

 

Exports of groundnut declined to 3,86,594 tons during April, 2018-February, 2019 from 4,50,285 tons during the corresponding previous period. In value terms also groundnut exports decreased to Rs. 2606.46 crores during this period from Rs. 3032.92 crores in the corresponding period.

 

The EU is looking at retaliating against the US on an ongoing dispute about Boeing at the WTO. The public consultation will last until May 31, 2019 at which point it seems the EU commission will make a decision on imposing or not tariffs on a list of US products including raw and roasted peanuts.

This could obviously have a dramatic effect on exports of US peanuts into the EU.  US exported a total of 1,45,852 tons during the period of March 2018 and February 2019. If the EU were to impose a tariff on US peanuts, one cannot expect the exports to fall to zero, but it goes without saying that exports to the EU would fall. It would give obviously an opportunity to largest competitor (Argentina and Brazil) to increase their price (hence their margins).

As to the new crop, plantings are under way. The hopes that cotton moves higher have faded, at least for the moment.

There is still lot of hopes that once the US/China trade issues get solved, cotton will move higher. If it was to move higher for next year, we could potentially see a sharp decline in peanut plantings for the 2020 crop in view of the current peanut oversupply.

Peanut plantings should end up being fairly similar to the 2018 crop, potentially slightly higher. This gives the US a potential to produce a 2.8 million tons crop with normal yields. That gives us an estimated carryover of 1.25 million tons for August 1, 2020 after an estimated 1.32 million tons for August this year. The current crop market remains extremely quiet. 

 

 

 

Sesame seed exports during April, 2018-February, 2019declinedto 2,86,760tons in comparison to 3,08,172 tons during corresponding previous period.However, in value terms, Sesame seed exports increased to 3405.56 crores from 2701.24 crores.

Sesame seed summer planting is under progress and we might see decline in acreages in Gujarat when we compare to previous years. In Eastern India farmers were happy at the price realisation of the previous season and we might see quantum jump in acreages in this region.

 

Imports of Sesame seed during the period April, 2018 to February, 2019 have been about 70,652 metric tons.

Niger seed exports during April, 2018-February, 2019 increased to 11,863 tons in comparison to 8155tons during corresponding previous period. In value terms, Niger seed exports increased to 84.32 crores from 62.74 crores.

The export of Sunflower seed during April, 2018 to February, 2019 was 2230tons and 5612 tons during full year 2017-18.

The export of Safflower seed during April, 2018 to February, 2019 was 4050tons and 6729 tons during full year 2017-18.

The export of Linseed seed during April, 2018 to February, 2019 was 10700 tons and 10042 tons during full year 2017-18.

The export of groundnut oil during April, 2018 to February, 2019 was 16984 tons and 12171 tons during full year 2017-18. The export was mainly to China.

The export of sesame oil during April, 2018 to February, 2019 was 9229 tons and 9452 tons during full year 2017-18. The export was mainly to Iran, China, Taiwan, Mexico, Netherlands, Singapore, UAE and USA.

The export of mustard and rapeseed oil during April, 2018 to February, 2019 was 3615tons and 3371 tons during full year 2017-18. The export was mainly to USA, UAE, Australia, Bhutan, Canada, Kuwait, Qatar and Sri Lanka.

The export of sunflower and safflower oil during April, 2018 to February, 2019 was 4094tons and3641 tons during full year 2017-18. The export was mainly to USA, UAE, Bhutan, Nepal, Ethiopia, Singapore, Sri Lanka and Netherlands.

The export of linseed oil during April, 2018 to February, 2019 was 255 tons and250 tons during full year 2017-18. The export was mainly to USA, Rwanda, Bhutan, Australia, Saudi Arabia, Serbia, Yemen, Malaysia, Myanmar and Bangladesh.

The export of castor oil during April, 2018 to February, 2019 was 5,65,733 tonsand6,13,633 tons during full year 2017-18. The export was mainly to China, USA, Netherlands, France and Japan.

Prices of various oilseeds (US$) are hovering around the levels as follows:

Sesame Seeds

Basis FOB

Price per MT

(April, 2019)

Natural Whitish 99/1/1

 Mundra / JNPT

1675-1750

Natural Whitish 98/2/2 

Mundra / JNPT

1695-1770

Hulled autodriedSortex regular 99.95%

 Mundra / JNPT

2100-2200

Hulled autodriedSortex Premium 99.97%

Mundra / JNPT

2200-2300

Black 99/1  Sortexed

Mundra

2600-2675

Black Jet Sortexed

Mundra

2700-2805

Ethiopian Whitish Humera

Djibouti  

1650-1675

Sudanese Whitish Gederaf

Port Sudan

1620-1640

Sudanese Reddish

Port Sudan

1420-1440

Nigerian Mixed

Lagos

1425-1450

Nigerian Maidiguri

Tin Can

1500-1520

 

Groundnut

Basis FOB

Price per MT

(April, 2019)

India

50/60 Java

Mundra

1065-1135

60/70 Java

Mundra

1040-1110

80/90  Java

Mundra

1000-1075

40/ 50 Bold

Mundra

1010-1080

50/60 Bold

Mundra

980-1050

60/70 Bold

Mundra

950-1035

50/60 Java

Chennai

1165-1280

60/70 Java

Chennai

1130-1250

80/90 Java

Chennai

1100-1220

 

Other Oilseeds/oils

Basis FOB

Price per MT

(April, 2019)

Safflower Seed 1%

JNPT

730-750

Niger seeds

JNPT

810-830

Linseed/Flax seed

JNPT

860-880

Black Sunflower Seed 99%

JNPT

640-660

Mustard seeds Bold 1%

Mundra

610-630

Mustard seeds small 1%

Mundra

660-680

Castor Seeds

Mundra

860-885

Castor Oil FSG

Kandla, in bulk vessel

1700-1725

Source: Trade Estimates

 

The Council is putting in all its efforts to resolve the difficulties faced by groundnuts and sesame seed exports to Russia due to the requirement of additional declaration (relating to Striga). The Joint Secretary - Plant Protection, Ministry of Agriculture had invited the Council to attend the meeting in this regard. Shri Khushwant Jain, Vice Chairman attended the meeting wherein it was decided that India would make a request to Russia to accept Phyto Certificate containing modified additional declaration which is practical from our perspective and satisfies the concerns of Russian authorities. This requirement emerges from the decision adopted by the Council of Eurasian Economic Union. Indian Embassy in Moscow is pursuing the matter. This may take time as our proposal would be discussed with the member states viz. Belarus, Russia, Kazakhstan, Armenia, Kyrgyzstan.

 

It was brought to the notice of the Council that sesame seed consignments imported from African countries are not being allowed clearance by the Plant Quarantine officials at the Port premises due to unnecessarily insisting on fumigation by Methyl Bromide. The Council took up the matter with Ministry of Agriculture and Ministry of Commerce. The delegation of IOPEPC met with Shri Atish Chandra, Joint Secretary, Ministry of Agriculture, Plant Protection department and Shri Santosh Sarangi, Joint Secretary , Ministry of Commerce - EP - Agri department. The prompt action from our side resulted into issuance of necessary instructions to the Phyto Department that the imported sesame seed cargo should be given clearance as per the procedure laid down in the PQ Order and should not insist on compulsory fumigation by Methyl Bromide.

 

The Ministry of Commerce has asked the Council to organise meeting in different states to sensitise farmers regarding agriculture export policy. The Council initiated this activity by organizing a Farmer Meet in Junagadh on 13th April, 2019. In addition to explaining key features of Agri Export Policy, the Council also mooted on cluster based production of pesticide-free sesame seed in Gujarat.

 

It is a matter of proud pleasure for me to inform you that M P government has shown its interest in cluster based production of pesticide-free sesame seed in the state. The government organized a stakeholder meeting in Gwalior on 8th May, 2019. We had extremely fruitful discussion with the state government and are willing to take it forward to make sure that we are able to achieve reasonable targets as early as possible.

 

The Gujarat Agriculture Ministry had also called us for a stakeholder meeting to discuss implementation of Agri Export Policy in the state on 8th May, 2019 in Gandhinagar. Shri Suresh Ramrakhiani, CEO, IOPEPC attended the meeting. With our consultation, a suitable Action Plan would be prepared for achieving objectives of Agri Export Policy.

 

As one of its export promotional activities, Council is organizing participation in international trade fairs -  World Food Moscow 2019, Anuga 2019, Gulfood Manufacturing 2019 and Gulfood 2020. Except Gulfood Manufacturing 2019 all the events are approved under MAI scheme by E&MDA Dept., Ministry of Commerce. The Council is offering stalls at subsidized rates. The Council has already sent invitations for World Food Moscow 2019, Anuga 2019 and Gulfood Manufacturing 2019 and have received excellent response. In order to organise maximum participation, the members are requested to apply for stall and take advantage of the opportunity. For any queries regarding availability of stalls, participation charges etc., members can contact Council’s office.

 

China is one of the most important markets for groundnut and sesame seed. In order to promote exports of oilseeds and oils from India, IOPEPC is planning to organize a Buyer-Seller Meet (BSM) in association with China Chamber of Commerce tentatively in September 2017. The details about the BSM will be shared shortly with the members.

 

Our Annual Trade Meet 2019 (ATM 2019) which is keenly awaited by the trade and Industry is tentatively planned during 19th – 21st October, 2019. Till date we used to organize this meet within India but this year we are planning to organize outside India viz in Dubai. The venue is being finalized. The final dates, venue and other details about the ATM 2019 will be intimated shortly.

 

 

 

With Best Wishes and Regards,

 

 

Sanjay shah

(Chairman)

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