Congested ports stifle trade

Wheat imports delayed

India's wheat import plan seems to have run into troubled waters due to congestion at ports.

Total imported consignments scheduled to arrive in the country by February 28, are now likely to reach only by mid-March or early April, a senior government official said today.

"We were looking at end-April. But now things are moving and we are targeting mid-March," the official said.

The official said movement of imported cargoes has been speeded up at Mundra and Kandla ports.

"Around 350,000-300,000 tonne wheat is lying at Mundra and Kandla and will be dispatched soon," the official said.

He said non-availability of adequate manpower, rail wagons, as well as slow bagging process has resulted in accumulation of imported wheat at the ports.

Wheat arrivals surged in the past one month, which led to congestion at ports.

Crisil MarketWire had earlier reported that Mundra and Kandla, the most heavily congested western ports, have hired extra manpower to clear stranded imported stocks.

India has received around 2.68 million tonne of wheat till date against the contracted deals of 5.5 million tonne.

A little over 1 million tonne is on its way to the country while the rest is being loaded at ports of origin. The official also said as and when imported wheat arrives the supplies in the country would ease.

As on November 1, the government had 5.99 million tonne wheat stocks in the central pool compared with 9.05 million tonne a year ago.

Citing the reason for the congestion, the official said the time of heavy arrivals coincided with festivals like Diwali and Id, which saw workers going on leave.

Meanwhile, the government will release 100,000 tonne additional wheat for above poverty line families in December, a senior government official said today.

The extra wheat would be released to ensure adequate supplies in the market, the official said.

The government had released 100,000 tonne additional wheat in September and October also to meet the festive demand and check prices.

Another official said additional wheat is being released keeping in view the stocks situation.

"According to the current projections, we will have more than the 4 million tonne wheat required for buffer on April 1, this is why we have decided to release more wheat for the consumers," the official said.

He said till now, however, there are no plans sell wheat under the open market sale scheme.

"We need to help consumers directly. Millers are already importing wheat to meet their requirements," the official said.

The government has been allocating only about 200,000 tonne wheat for the above poverty line families since June to conserve its dwindling wheat stocks as against the usual allotment of over 1 million tonne.

Since September, however, it has been releasing 100,000 tonne additional wheat for above poverty line families to ensure adequate supplies for consumers.

The official said with imports coming in, the government would have adequate stocks to last till March and still have a comfortable carryover.

As on November 1, the government had 5.9 million tonne wheat in the central pool, including 2 million tonne of imported wheat.With 3.5 million tonne more imported wheat scheduled to come in by February-end,the government would have enough stocks to last till March and have a comfortable carryover, if it maintains the monthly wheat offtake for public distribution and other state-run welfare schemes at about 1 million tonne.