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1 USA DRY BEAN COUNCIL MONTHLY REPORT FEBRUARY & MARCH PRESENTED TO USDA/FAS FOOD & GRAIN DIVISION 14 th & 15 th INDEPENDENT AVENUE, SW WASHINGTON, DC PREPARED BY SHAKUN DALAL SD CONSULTANTS C-101 SOMVIHAR, SANGAM MARG, RK PURAM, PHONES: ; S: 1
2 SHAKUN DALAL - SD CONSULTANTS C-101 SOMVIHAR, SANGAM MARG, RK PURAM, NEW-DE TRADE SERVICE WITH INDIAN PULSE TRADE Shakun, kept in touch via s and phone calls with Indian pulse trade during the month of February & March Total of eight Newsletters were sent on a regular basis to importers, brokers, and wholesalers. Shakun, also kept in touch with few food manufacturers, retailers, & food service companies via s. Shakun, kept in touch with Indian Pulse trade and IPGA for information on PPQ issues and market intelligence on Indian pulses market, besides attending a short meeting with Federation of Imports/Exports Organization on this subject, which was addressed by PPQ senior Managers. INDIA FOOD FORUM-2017 India Food Forum is India s largest food retail intelligence event, which was held from January 31 st to 2 nd February This was 10 th edition at the Bandra Kurla Complex in Mumbai. USDBC procured samples of US black eye beans from a loyal and trusted trader in Mumbai and displayed product sample through US Consulate in Mumbai. India Food Forum is an all-access platform to connect with every component that a food business -- from rich market knowledge to consumer research to upcoming product innovation and retail technology trends to smart business networking AAHAR TRADE FAIR MARCH 7 th, - 11 th, 2017 The 32 nd edition of Aahar, the international Food & Hospitality trade Fair took place in Delhi from March 7 th to March 11 th, Aahar is regarded as the largest trade fair in the food & hospitality sector in India Aahar 2017 was demarcated in to two separate but concurrent exhibitions- Hospitality India covering hotel & restaurant equipment and supplies and Food India covering food, processed food and beverage products. From USDBC, we showcased US small Red beans and black eye beans through US Embassy. 2
3 Shakun visited on March 7 th and placed US products on the US Embassy booth/counter. Shakun also visited the entire exhibition and left some product literature and her card for future talks. On March 9 th, 2017, Shakun attended the seminar at Aahar, organized by All India Food Processor s Association. Here she met some canners, bakers and snack food manufacturers. Here also we distributed around 30 Directory of USDBC. AGRICULTURAL SCENARIO-INDIA A lot is happening here right now!!! GRANT OF MBR FUMIGATION WAIVER On March 28 th, an official letter was released regarding fumigation waiver till June 30 th, 2017 on Bill of Lading. It was a sigh of relief for every one dealing in pulses business. IMPORT DUTY ON PULSES There was speculation all over the pulses market that government has decided to put import duty on pulses and announcement is just to be made before end of fiscal year-march 31 st, It is proved that the speculation was just a speculation and only Pigeon peas are subjected to Import duty. India on Tuesday, March 28 th, 2017 imposed 10% import duty on Pigeon peas from immediate effect to protect domestic growers from cheaper produce available from overseas markets. Pigeon peas are imported from-myanmar, Tanzania, Kenya, Mozambique. Pigeon peas production is estimated/expected in to be 4.23 million MT as against 2.56 million MT in last year Source: Economic Times PROBLEMS OF PLENTY NOW In a strange development, at a time when India is harvesting a record pulse crop estimated at 22.1 million MT (kharif 8.7 million MT and rabi
4 million MT), Indian imports are also set to reach a new high of over 6.0 million MT during financial year From April 2016 to January 2017, total arrivals of imported pulses were an estimated 5.4 MT, and going by the frenetic pace of arrivals to beat the March 31 proposed deadline to ensure cargoes are fumigated with methyl bromide at the origin rather than at the discharge port in India, the projected import for the whole year is set to exceed the high of 5.9 MT by about 10% to make it to 6 million MT. In other words, the aggregate availability of pulses in India (domestic production plus import) is a massive 28 million MT this year. Admittedly, Indian crop production data is compiled on a crop year basis (October- September), while imports are on a financial year basis. But that is not going to dramatically alter the availability picture. Outlook So, what s in store for the pulses market in the coming months? Currently, there are two uncertainties for the market. One is the possibility of the government imposing an import duty (may be 10%) on pulses so as to discourage large-scale imports that are seen depressing domestic prices. The other is the non-tariff barrier in the form of compulsory methyl bromide fumigation at the origin (load port) instead of at destination (discharge port in India). Countries like Canada and the US have banned methyl bromide fumigation; and so they will not be able to comply with Indian plant quarantine condition. While this move by the government has created panic in the market, there are attempts to find a via media in the form of use of fumigant aluminum phosphide or phosphine as an alternative to methyl bromide. By its very nature, phosphine reacts slowly taking several days to exert its effect, unlike the rapidly acting methyl bromide. Another key uncertainty for the market (both domestic and international) is also the early sign of a developing El Nino in South-East Asia. It may take up to two months to obtain a credible forecast of the status of the weather phenomenon. By then, the government of India will have to be ready with an action plan to meet any contingency. Otherwise, the euphoria of record crops may vanish without a trace. Source: G Chandrashekhar, Independent analyst, Hindu BusinessLine. NOTE: IMPORT volume for (April 2016-March 2017) has reached 6 million MT by March
5 BUMPER CROP DOES LITTLE TO CHEER PULSES FARMERS BUFFER STOCK BY GOVERNMENT CUMMULATIVE DOMESTIC PROCUREMENT OF KHARIF PULSES THROUGH VARIOUS GOVERNMENT AGENCIES (ALL FIGURES ARE IN MT) AGRICULTURAL GROWTH EXPECTED AT 8% The government has forecast a robust 8% growth in farm output this year after bountiful monsoon rains, raising prospects of stronger rural demand for consumer goods, automobiles and gold, and strong economic growth. The strong growth comes after a drought ravaged the fields for two years and heightened rural distress. India's food grains production in 2016/17 is expected to rise by 8.1 percent from a year ago to a record high million MT as good monsoon rains improved yields, and various policy initiatives taken by the government, the country has witnessed record food grain production in the current year. Wheat output is pegged at million tones, an increase of 4.71% from the previous year. Output of pulses is projected at million MT compared with
6 million MT in the previous year an increase of over 35.41%. The first advance estimate was issued in September The third estimate will be released by May and the fourth and final one by August. Source: Ministry of Agriculture Higher food grain production is good news for economy especially rural. This should help stabilize prices," However, it was important to wait for the Rabi harvest to get a clear picture. The Rabi crop is progressing well, but it can suffer if there is unseasonal rain or hailstorms on the eve of the harvest. Source: Ashok Gulati, agricultural economist INDIA VISIT FOR BUSINESS BY A USDBC INDUSTRY MEMBER After IPGA in February 2016, this was a first visit by an industry member from US Beans industry. The visit took place from March 19 th, to March 24 th, 2017 in Delhi. As Beans are mostly consumed in North India and Delhi being the nerve center of business for North India, the visit was kept only for Delhi. From Monday, March 20 th to Thursday March 23 rd meetings were arranged and conducted. The best of the trade lot was arranged to meet with the visitor. Five container of business was asked during these meetings for trial purposes, hope this materializes from the visitor s company. 6
7 DELHI WHOLESALE MARKET VISIT DURING MARCH 2017 Shakun, USDBC representative in India, visited wholesale market at Delhi and met with almost all major players in Delhi during third week of March 2017 for ground information a) Almost every company was busy buying Desi gram from Australia even at a higher price of US$ 860 per MT at Mumbai port. This resulted in thinking that desi gram crop has to be shorter than expected earlier and announced by the government of India. b) Every one I visited had asked me if I could help them procure large caliber chickpeas/garbanzos from USA. I visited all large players of this market. c) I also saw trade negotiating for red lentils from Australia. d) Most of the trade was complaining about bad quality of Canadian cargo arriving in to Delhi. They were so vocal as if I have arranged those cargos and only I can help them to rectify the mistake. I just advised them all in one sentence- always buy Dark red kidney beans, Small red kidney beans, pinto beans, Lima beans, Black beans, Black eye beans, peas, lentils, chickpeas from USA and you will be happy, healthy and wealthy. WHOLESALE PULSES- FEBRUARY 2017 During the first week of February, Sluggish trend continued in pulses on slack demand and rise in arrival of new crop. During middle of the month, barring Pigeon peas and Mung beans, majority of pulses in Indore wholesale market edged up on slack arrival. WHOLESALE MARKET - MARCH 2017 RED KIDNEY BEANS MARKET Pune, Jammu and Tamil Nadu are the areas where red kidney beans are grown in India but volume of domestic crop is short so deficit is met with import. India red kidney beans market is around 80,000 to 100,000 MT but red kidney beans Consumption is more in whole of North India, but more in Delhi and surrounded areas plus Punjab. Most of the red kidney beans are imported from Myanmar and some excellent quality is imported from China. Myanmar red kidney beans are very well accepted in the wholesale markets and traders prefer this as sale is faster than expensive quality. Imports from Myanmar has another advantage is that shipments reach faster due to next door to India. Myanmar quality was procured from US$ 960 to 1,040 7
8 Some small red beans from USA were seen during the trip to wholesale market of Delhi, most of the traders who have received the cargo are satisfied by the quality sent. Large Speckled Kidney beans from China were also seen every where in the wholesale Market of Delhi. Black eye beans have arrived from USA but I did not see them around in this market at the time of this visit. Some inquiries were there for Pinto beans from USA, in fact 2-3 traders asked for it. At the time of this visit, more interest was shown in small reds. I have to make inquiries to understand this change. Best quality Beans from USA-when we say US grows the best quality beans, US industry needs to show their best samples. It was observed that samples shown were not best quality and there were defects seen with naked eyes, which were pointed to me. Price is a great factor in selling beans from the wholesale market. It was observed that traders who want to pack in consumer packs are the only one who showed some interest in better quality beans. USDBC, needs to send me the clear and good digital photos of dark red kidney beans, Small Red beans, Pinto beans, Black eye beans and black beans to show it to the Indian buyers fro Indian pulse industry. These photos can be displayed at some shows, opportunity of promotions through US Embassy in Delhi and US Consulates at Mumbai, Chennai, Hyderabad and Kolkata. 8
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