Edible oil markets have turned wayward following government's delay in following up its announcement of a cut in import duties with a relevant notification, industry observers said. However, the department for sugar and edible oil denied the charge saying there is no reason for trade to be paralysed in view of the government's statement. ``Edible oil trade has become wayward and government's failure to follow up its statement with a finance ministry notification has created uncertainty in domestic market," Malayasian Palm Oil Promotion Council's India representative Ashima Raheja said. "It is obvious that the move to come up with a statement and not follow it up, is to reduce prices," she said. J Choudhary, secretary, sugar and edible oils, wondered why trade was troubled if the government did not follow up its announcement with a notification. "We cannot understand why trade should be bothered if the notification has not followed our statement," he said. Last week, thedepartment of sugar and edible oil said the government had initiated the process to cut edible oil import duty by 10 to 15 per cent which could lead to prices of imported oil dipping by Rs 3,000 a tonne.

Liffe grains futures

Liffe wheat futures closed lower on Friday, with new-crop down due to an early rise in sterling and old-crop dented by oversupply concerns, said brokers. The market was relatively quiet ahead of an extended holiday weekend in the UK and after a national holiday on Thursday across most of Europe. Only 170 lots of wheat were traded. Brokers active on the Liffe wheat contract said a rise in sterling set the tone for new-crop early in the session, with expectations of a large crop in 1998 adding to the downward pressure. "We lost our impetus from Thursday," said a Scotland-based broker. "So we drifted off when sterling rose." Sterling was a touch higher late Friday at just above 2.87 deutsche marks, forcing domestic prices lower to maintain export competitiveness against the Frenchmarket. Old crop also drifted lower due to the continued over-supply in the market. Liffe barley futures also closed lower. A total of 4 lots traded. Matif wheat futures at 1540 GMT are higher. September is up two French francs at Frf795 a tonne. November is up Frf3 at Frf 833 a ton. March 1999 is unchanged. A total of 218 lots are traded so far wheat futures on the Chicago Board of Trade opened mostly lower on Friday due to concerns of harvesting progress and wet weather pressuring the market.

Syria to buy 52,000 T sugar

Syria's general foreign trade organisation for chemicals and foodstuffs (Geza) on Saturday issued a tender to buy 26,000 tonnes of white sugar and 26,000 of raws for delivery in July, a Geza spokesman said. He told Reuters that June 3 was set as final date to receive price offers and results would be announced on June 4. Geza bought on Wednesday 13,000 tonnes of white sugar at $298.9 per tonne for delivery between June 20 and July 20. But, it cancelled the purchase of 13,000tonnes of raws that were contained in the same tender issued on May 9 because price offers did not meet Geza's conditions.

UP sunflower harvesting in doldrums

Unfavourable harvesting conditions deter the efficient sunflower farming in Uttar Pradesh even as the encouraging government support has made the state an emerging cultivation belt for the oilseeds. High temperatures during the harvest time in June each year and unpredictable pest attach have made reaping of oilseeds a taxing task in Meerut which stands second only to Kanpur in t he district-wise distribution of area under sunflower cultivation in Uttar Pradesh. Traditionally, a kharif crop in the south Indian states and Maharashtra, sunflower farming became a major economic activity in Uttar Pradesh following a government drive in mid 80s. The area under oilseeds cultivation is 32,692 acres. The seeds dried from high heat of Uttar Pradesh are sold in the New Delhi market at rates ranging between Rs 1,100 and Rs 1,200 per quintal, From thecapital they are then consigned to Mumbai and south Indian towns which have sunflowerseed oil mills. Incidentally, sunflower cultivation was introduced in the early 80s as an interim crop after the kharif crop of paddy and rabi crop of potato. However, despite the efforts of the government under the technology mission on oilseeds, the crop does not seem to bear desired results.

Rice exporters plan team to Indonesia

Thailand's decision to suspend rice shipments to Indonesia and Vietnamese ban on fresh exports could force Indonesia to turn to India for supplies, Indian grain traders feel. Exporters are booking a lot of orders to Indonesia, Africa and Bangladesh, said a leading rice exporter. Thai rice exporters have decided to suspend shipments to Indonesia unless backed by letters of credit from third countries. Drought-stricken Vietnam has suspended all new rice export contracts, but has said the ban might be lifted if rainfall improves. "As two main rice suppliers are out, and with Pakistan alsonot having enough non-basmati rice supplies, Indian rice is the only and right alternative available now, said Gurnam Arora, president All India Rice Exporters' Association. Indian rice exporters, therefore, plan to send a delegation to Indonesia this year to try to get the ban removed. "Our delegation will try to sort out the problems regarding quality and other related aspects"

Mexico's sugar harvest up

Mexico's sugar harvest for 1997-98 crop year has reached 4.67 million tonnes, surpassing the initial government forecasts of a total crop of 4.5 million tonnes. In a weekly harvest update released last week, Mexico's Agro industry Sugar Committee statistics showed the 1997-98 sugar harvest (November-June) to May 16 was well ahead of schedule and 12.2 per cent higher than the same period in 1996-97 crop. The Mexican agriculture authorities and industry officials initially forecast the current sugar crop to reach between 4.8 and five million tonnes compared to the total of 4.5 million tonnes reachedin 1996-97 crop year.

Panna mine capacity to rise

The National Mineral Development Corporation (NMDC) proposes to increase the capacity of Panna diamond mine from 30,000 carats per annum to 84,000 carats per annum within the next two years. NMDC, apart from operating three large scale iron ore mines, is also operating the only mechanised diamond mine in India at its diamond mining project, Panna in Madhya Pradesh. The rough diamonds mined at panna are regularly auctioned to diamond merchants at Mumbai or Panna. Presently, 200th auction of diamonds is going on at Mumbai this week, in which about 15,000 carats of diamonds are placed for auction. In the year 1997-98, NMDC realised Rs 18.46 crore from auction of rough diamonds. NMDC, in its bid to diversify and expand its activities, has also augmented its diamond production in the last seven years. The plan is already on the anvil to increase its capacity from 30,000 carats presently to 84,000 carats in about two years. The Panna Diamond Mine whichwas a loss making unit for several years, has turned the corner and started making profits since four years back.

Euro cotton prices higher

Raw cotton prices rose slightly in the European cotton market on Friday. Traders reported demand in certain European markets, including Italy, for central Asian descriptions. "Some business has been arranged for shipment nearby and well forward. Spain has recently noted the first offers to that market of Chinese supplies, for shipments through to next spring," said Cotlook Ltd., the Liverpool-based cotton information company. Cotlook reported that African `Franc zone' strict middling, Sudan barakat and Sudan acala all remained unchanged from Thursday a 66.00 cents per pound, 84.50 C/lb and 62.50 C/lb respectively Friday. However, US Texas middling and US Memphis middling both rose from Thursday by 0.75 C/lb to 69.25 C/lb and 72.50 C/lb.

(Reuters and agencies)