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Global Grain and Feed Forum 20 th & 21 st June 2014, Goa Marriot. Opening Remarks. Amit Takkar CEO – Grains Ruchi Soya Industries Ltd. 5 Challenges facing Indian Grains Trade. 1 - Long term player. India consistently surplus in Wheat, Rice, Corn.
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Global Grain and Feed Forum20th & 21st June 2014, Goa Marriot Opening Remarks Amit Takkar CEO – Grains Ruchi Soya Industries Ltd
1 - Long term player • India consistently surplus in Wheat, Rice, Corn. • Are we a long term player as a reliable and trusted exporter • Surplus : Wheat – 8 million, Corn – 4 million, Rice – 10 million • Price competitiveness.. Average 8% depreciation in Rupee is insufficient in 2014 • Can we develop wheat varieties suitable for specific markets to be ling term player • India customarily deficient in Pulses • Will we be able to fix the SND gap • Yields being single largest factor.
2 - Quality • Inconsistent quality – farm commodities are farm dressed • Issues of high dockage & screenings, uneven moisture, toxins, damages, fungus etc. • Bagged cargo movements adds to woes by way of twines, torn bags etc. • Manual labor handling – free empty pouches, footwear, bag hooks etc. • Rice Industry on the other hand demonstrated high quality standards.
3 - Logistics • Lack of proper infrastructure at origin. • Bagged cargo movement – bag quality in many cases still an apology leading to very high losses. • Losses in storage and movements. • Poor load rates in some ports.. Some ports have done exceedingly well.
4 – ‘Quality’ Price Discovery • Lack of confidence and participation in commodity futures exchange. • Past experience led to market participants shying away from Grains
5. Yields, Weather dependence, motivation for farming • Lack of world class yields in practically every commodity – potential for growth • Draught resistance practices and back up plans in case of full blown El – Nino • Reality and urbanization boom making Agriculture less attractive in semi urban clusters.
Grain Trade Association • Strong and robust associations can provide • Default redressal and arbitration forum • Standardization of contractual terms • Trade body representation and participation to the policy makers. • Quality and Varietal standardizations • Promote Indian grains in world markets
