ABB GRAIN TO EXPLORE INDIAN MARKETS
ABB Grain, one of Australia’s largest grain handling and storage companies, is exploring the market opportunities in the country. It is also considering consultancy and investments in grain storage infrastructure. While investments in infrastructure are a long-term plan, its immediate interests are in grain exports. However, tariffs and new quarantine regulations, which have hit the decades-old trade, are stifling growth, say company officials. Traders on both sides and government officials are in discussions to expand their relationship across borders. Trade is of immediate interest, and ABB, which handles a wide variety of grains, could supply these to India. According to John P Warda, General Manager – Storage and Handling, ABB Grain,“The Company also hopes to exploit the market for malt. With the increase in beer consumption there is a definite potential. But for now the 30 per cent tariff on the product line is a dampener.” India has one of the most stringent quarantine regulations, which have hit the trade in the last one-year. Some of the major points of contention relate to the levels of weed seeds in pulses and the gas used in fumigation. India is insisting on methyl bromide fumigation, while Australia is in the process of phasing out the usage of the gas because of environmental issues.

COTTON CONCERNS CRY FOR PROMPT ATTENTION
An unprecedented 16 per cent expansion in global cotton output forecast for 2004-05 combined with a modest rise of 2.5 per cent in world cotton consumption is set to play havoc in the market. All the major cotton p r o d u c i n g - countries in the n o r t h e r n hemisphere are in the process of harvesting their crop and in many cases the growth rate is double-digit. China’s output, the world’s largest cotton producer, is set to rise by a massive 32.3 per cent. US, the second largest, will see 18 per cent growth in output, while for Pakistan and Uzbekistan it is 16 per cent and 17 per cent respectively and Indian crop prospects have also turned out to be significantly better as per the reports from representatives of industry and trade analysts. But there are serious reservations about the veracity of the crop size estimated by the Cotton Advisory Board. It is estimated as 213 lakh bales, an increase of 36 lakh bales from the previous year’s 177 lakh bales. The Cotton Corporation of India has been directed to intervene and begin price support operations. To what extent it will succeed in arresting price decline remains to be seen..

NEW VANILLA AUCTION CENTRE OPENED IN KERALA
The eighth auction centre of the All-Kerala Vanilla Growers’ Association (AKVGA) will be opened by the District Collector, Rani George, at Ettumanoor. Three more auction centres will be opened soon, according to Asokan Ambalavayal, State General Secretary, AKVGA. The intention of the association is to ensure a remunerative price for vanilla, especially at a time when deliberate attempts are made to bring down the prices in the domestic market. Middlemen, private agencies will be eliminated from marketing of the crop. The Association has decided to dispense the practice of selling vanilla directly by growers at their homes. Vanilla procured at the auction centres could be sold to companies and purchase agents from there itself. If the purpose of such auction centres is defeated, vanilla could be centrally processed at Idukki and marketed from there without losing its quality. Vanilla is the world’s second most expensive spice(after saffron). Pure vanilla extract is at least 35 per cent alcohol, has a dark honey colour and a clean, rich aroma.

MALAWI FEARS THE TOBACCO TREATY IMMENSELY
Malawi, one of the biggest producers of tobacco, is coming under pressure to sign a new treaty limiting its production. 168 countries have signed the World Health Organisation’s (WHO) Framework Convention on Tobacco Control so far and nine more countries need to sign it, to make it an International law. Tobacco, or ‘green gold’, accounts for 70 per cent of Malawi’s export earnings, reported BBC’s Health Matters . Some government ministers are concerned that signing the convention could mean that millions of people are condemned to poverty. Malawi is the largest producer of burley – a type of tobacco particularly favoured by manufacturers as a filler in cigarettes. The crop accounts for up to one-third of the country’s Gross Domestic Product (GDP). WHO estimates that about five million people die from tobacco related illness each year in Malawi, which ranks among the 10 poorest nations on the world.

 

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