Despite the duty cut, spot and futures prices rise by Rs 25 a quintal. | |
| Wheat prices in the spot and futures market have risen about Rs 25 per quintal since the announcement of duty cut by Agriculture Minister Sharad Pawar on Monday. |
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| At the National Commodity and Derivatives Exchange (NCDEX), wheat for September delivery rose from Rs 950 a quintal on Monday to Rs 973 (17.00 IST). October futures rose from Rs 970 a quintal to Rs 995 over the same period. |
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| At the Multi Commodity Exchange (MCX), the spot price of wheat increased from Rs 988 a quintal on Monday to Rs 999. |
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| "The duty cut notification has not come so far. Markets may soften once it gets notified. But the trade is still apprehensive, as there was a difference between the agriculture and finance ministry on the issue of duty cut", said a Karvy wheat analyst. |
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| Moreover, the high prices in the range of $223-270 per tonne quoted in the last State Trading Corporation (STC) tender mean that individual private importers would be able to buy wheat only in the range of $240-245 (Rs 11280-11515) and above. At this rate, not many traders would be willing to import, he said. |
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| "The duty cut should have come much earlier when the international price of wheat was lower than the domestic price. Now when the international price is ruling on a higher side, the landed price of imported wheat would be at par with domestic price and may not have any significant impact on the domestic price", said the chairman of All India Grain Exporters' Association DPSingh. |
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| On Tuesday, Pawar said the wheat import duty would be notified in a day or two. However, till late evening today, the duty cut was not notified. |
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| Meanwhile, the STC has shortlisted four bidders for the 16.7 lakh wheat import tender. |
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| Glencore, AWB, Toepfer and Concordia who offered 6.5 lakh tonne, 6.3 lakh tonne, 5.4 lakh tonne and 1.8 lakh tonne, respectively, have been shortlisted, according to an official source. The price offered by them are in the range of $225 to 267 a tonne. |
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