960424

Indian exporters to

gain by high U.S.

wheat prices

NEW DELHI: Indian exporters are set to gain by U.S. wheat futures peaking at a new all-time high but port constraints could dampen export efforts, traders and officials said on Wednesday.

"Naturally India stands a good chance," said Mulraj Tanna, a leading Bombay foodgrains trader.

The export market had already improved, Tanna said. "In the last couple of days Indian wheat was being quoted at $176/177 per tonne compared to $172/173 earlier."

Hard red winter wheat futures ended at a new all-time high at the Kansas City Board of Trade on Tuesday. Concerns about significant crop damage and a U.S. Agriculture Department report rating 45 percent of the crop in poor condition have fuelled the rally.

KCBT May wheat ended up the 25-cent-per-bushel daily limit at $6.84-1/2 per bushel, surpassing Monday's all time-high for a KCBT wheat contract of $6.59-1/2.

"Indian quality wheat is by and large accepted and we can hope to get substantial U.S. business share," Tanna said.

India allowed exports of 2.5 million tonnes of non-durum wheat in fiscal 1995/96 (April-March). Last week it permitted fresh wheat exports of one million tonnes in 1996/97.

Navneet Sharma of the state-owned Agricultural and Processed Food Products Export Development Authority (APEDA), which clears the country's wheat exports, said India stood to gain by the firming up of U.S. wheat prices.

APEDA officials said most of the 2.5 million tonnes for export in 1995/96 has been contracted for sale. All applications received through April 26 for the fresh one million tonnes of wheat exports will be considered for issue of permits.

"Shipping agents tell us we have shipped only about 800,000 tonnes," Sharma said.

Actual shipments have lagged because of congested ports and bottlenecks in movement of wheat from marketing depots to the ports.

"The problem is how our ports are going to cope with the demand during monsoon starting in June when only major ports would work," Tanna said.

Tanna said India had a geographical advantage in selling wheat to the Middle East and Far East.-Reuter