Indian market to become more attractive to grain exporters – G Chandrashekhar

25.04.2018

By September 2018, pulses market in India may become really attractive to Ukrainian and other suppliers of respective commodities. This was supposed by global agri-market expert G. Chandrashekhar (India) at the XV Jubilee International Conference “Black Sea Grain-2018”, premiere event of the Black Sea region, recognized by global leaders of grain & oilseeds.

The speaker estimated India’s current need for pulses at 30 MMT. He stated that his country is far from self-sufficiency yet. The reason is that it grows just some 24 MMT of pulses. Therefore, India is forced to import 5-6 MMT annually. Moreover, the expert is confident that pulse consumption in the country will increase in the coming years. As less than six months are left until September, Mr. Chandrashekhar expressed an opinion that it is expedient to begin preparing already now for Ukrainian pulse imports to India. The country will use up its previously stockpiled pulse inventories by September, and the market will become balanced, the speaker said. That is when India will probably revise its tax policy towards commodity imports.

Also, in the opinion of the expert, it would be desirable to sign an intergovernmental Memorandum on fixed pulse deliveries from Ukraine to India (similarly to the already signed Memorandum between India and Mozambique).

The speaker reminded that India is one of the world’s largest wheat producers: its government forecasts the 2017/2018 wheat crop at 97 MMT. Although India’s need for imported wheat is small, Mr. Chandrashekhar believes this business is quite profitable. According to his forecasts, India will be a regular buyer of foreign wheat within the coming 5-8 years. In particular, the country imported some 2 MMT of this commodity in 2017. In addition, the expert says, India’s wheat belt is located in the north-west of the country. And it is cheaper to deliver grain to the southern regions by sea from Australia or Ukraine than transporting it by land from the north-west.  

XV Anniversary International Conference “Black Sea Grain: Moving Up the Value Chain”  took place on April 18-19, 2018 in InterContinental hotel, Kiev, Ukraine. Organizer – consulting agency UkrAgroConsult, General Sponsor – ACTAVA TRADING, Exclusive Financial Sponsor – Credit Agricole Bank, Exclusive Exchange Sponsor – CME Group, Official Sponsor – Sierentz Global Merchants. Sponsors -  Filhet-Allard Maritime, INTL FCStone, Intertek, Taban Grain, Tradomatic, Rietumu Bank. Supported by GAFTA and Ukrainian Grain Association.

The conference was attended by 700 delegates from 400+ companies and 50 countries. Participants are represented by international producers and crushers of grains and oilseeds, agri holdings, traders, banks and investment funds, shipping, brokerage, insurance, surveying, law and consulting companies etc.

 

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