The incidence of rice smuggling into the country has not only made business difficult for genuine rice importers but also denies government of valuable revenue that would have been generated through proper payment of duties and levies at the ports
A survey has shown that the major rice markets in Daleko, Iddo, and Ebute Ero markets in Lagos among others are over flowing with smuggled rice of various brands.
Mufutau Gbadamosi, President of Rice Importers and Distributor Association of Nigeria (RIDAN), said that the smugglers have almost driven the importers into extinction because they evade duty and taxes and sell at cheaper prices. “You know that the margin on a bag of rice is quite small, a maximum of N150 per bag. For those of us that import into the country through sea ports pay duties, levies and pay wages, one would see that the smugglers are sabotaging the economy.
“Beside the smuggling activities, the Federal Government has increased the value per tone of rice to $640 from $590 while duties on it had increased to 32 per cent in accordance with international benchmark,”
Following the negative impact of these unbridled smuggling of goods, especially rice, association o has raised alarm that smuggling of the commodity into the country through Seme and Idiroko border is threatening their business. He noted that the situation is so bad now adding that it was act of patriotism and the need to contribute to the revenue of the government that was keeping them in operation.
According to him, in the past, the smuggling of the commodity into the country was not a serious threat to importers, but now, with smuggling assuming a much more frightening dimension, the challenges have become enormous. “With these increases, importers now pay $205 as against $190 per tone besides the benchmark of $640 and the cost of freight and other ports charges,’’ Mohammed said.
John Akigbe, a nutritionist, said that since rice is the staple food of Nigerians, the Nigeria Customs Service seems to be paying lip service to smuggling activities because the end cost of rice is borne by the common man. Akhigbe said that the ugly aspect of the issue is that the lives of many Nigerians are at risk because most of the smuggled rice is unwholesome for human consumption. He explained that all imported rice into the country was duly tested and certified by NAFDAC as well as had an approved brand.
Gbadamosi, the president of the rice importers noted that about 560, 000 tonnes of parboiled rice imported into Republic of Benin in 2009 have found their way into the Nigerian market, resulting in a loss of N16.3 billion to the economy. “We all know that the Beninoies do not eat parboiled rice,’’ he said. He equally remarked that the quantity of rice smuggled into the country through the nation’s borders was increasing by the day.
He added that the increase, which started as far back as 2005, had continued to increase astronomically. He said if the activities of the smugglers remained unchecked it would cripple the activities of genuine importers. A survey at the Seme and Idiroko borders posts showed that the big-time smugglers now have long queue of specially built trailers to carry 72 tonnes of goods mostly rice as against the 32 tonne trailer. He also noted that apart from the huge revenue loss and the hazard such products pose to the Nigerians, the excessively loaded trailers damage the nation’s roads further creating huge maintenance cost to the government.
It was observed that the small time smugglers at the Seme and Iiroko border posts have become virtually lawless as they result to all manners of mischievous activities to circumvent the law and smuggled such products into the country. The security agencies at the borders include the Nigerian Custom Service (NCS), Nigeria Immigration Service (NIS), the
Nigerian Police Force (NPF), Nigeria Army Intelligence, Quarantine Agency, The State Security Service (SSS), and Nigeria Drugs Law Enforcement Agency (NDLEA) etc.
Joesph Akin, an importer of rice, said that any increase in duty, tariff, levies and benchmark always triggers an increase in the importation of such products into the Republic of Benin and Togo ports with the intention to smuggle such products into Nigeria In addition, he said such government inconsistency in policy create room for fraud and gives opportunity for security agencies to take undue advantage. “It makes security agencies to connive with smugglers to evade taxes and flood the Nigeria markets with such products. “Most of the security agencies use all means of influence to remain at the lucrative border posts. Even when they are posted out, they wangle their way back within the shortest possible time,’’ he said
Chukwu Okoro, another importer of rice, suggested that the Anti-Graft Commission should monitor and investigate NCS officers. “They should start to prosecute and jail such officer to serve as deterrent to others. “Nigeria can not achieve 48 hours cargo clearance without proper reform and sanitisation of the customs,’’ he said.
Thursday, March 4, 2010
Wednesday, February 24, 2010
NDDB may be asked to import skimmed milk powder, butter oil to meet shortage- Foreign Trade-Economy-News-The Economic Times
NDDB may be asked to import skimmed milk powder, butter oil to meet shortage- Foreign Trade-Economy-News-The Economic Times
NEW DELHI: India, the world’s largest producer of milk, is looking to allow import of skimmed milk powder and butter oil to address the rising shortage of milk and milk products, which has led to a sharp increase in prices.
A committee of secretaries on prices is expected to take up the proposal shortly, a government official told ET. As per the proposal, the National Dairy Development Board (NDDB) may be asked to import 30,000 mt of skimmed milk powder and 15,000 mt of anhydrous butter oil on an urgent basis.
India produces about 105 mt of milk every year, roughly of the same order as the domestic demand. The tightly balanced demand-supply equation has caused demand to exceed supply, following the drought-related drop in production of milk. There is also apprehension that government policies have made cattle rearing for meat more lucrative, causing growth in production of milk to drop in recent years.
Prices of milk have already gone up in the range of Rs 4 a litre and ghee or butter oil by about 5% in the past six months due to shortage of the commodity. Milk cooperatives all over the country are expected to further raise prices in wake of shortfall and higher procurement prices.
Gujarat Cooperative Milk Marketing Federation, the retailer of the popular Amul brand of milk and milk products, recently raised the price of its full-cream milk by Rs 2 a litre.
Some states such as Maharshtra have already increased procurement price of milk, following a sharp rise in price of fodder.
Union food and agriculture minister Sharad Pawar had recently highlighted the issue of milk procurement by states in view of the shortage of commodity. He had said states looking to procure milk will have to increase the procurement price of milk. Of the total milk produced, about 50% is consumed by the village households, while the remaining 50% is considered marketable surplus. The organised sector accounts for about 30% of the marketable surplus. Most of the dairy cooperatives build their quota of milk powder in winter, when supply of milk is good.
This is then used as a buffer in summer to deal with any shortfall. But, this year, cooperatives have been unable to build this buffer due to the drought forcing the government to resort to imports.
NEW DELHI: India, the world’s largest producer of milk, is looking to allow import of skimmed milk powder and butter oil to address the rising shortage of milk and milk products, which has led to a sharp increase in prices.
A committee of secretaries on prices is expected to take up the proposal shortly, a government official told ET. As per the proposal, the National Dairy Development Board (NDDB) may be asked to import 30,000 mt of skimmed milk powder and 15,000 mt of anhydrous butter oil on an urgent basis.
India produces about 105 mt of milk every year, roughly of the same order as the domestic demand. The tightly balanced demand-supply equation has caused demand to exceed supply, following the drought-related drop in production of milk. There is also apprehension that government policies have made cattle rearing for meat more lucrative, causing growth in production of milk to drop in recent years.
Prices of milk have already gone up in the range of Rs 4 a litre and ghee or butter oil by about 5% in the past six months due to shortage of the commodity. Milk cooperatives all over the country are expected to further raise prices in wake of shortfall and higher procurement prices.
Gujarat Cooperative Milk Marketing Federation, the retailer of the popular Amul brand of milk and milk products, recently raised the price of its full-cream milk by Rs 2 a litre.
Some states such as Maharshtra have already increased procurement price of milk, following a sharp rise in price of fodder.
Union food and agriculture minister Sharad Pawar had recently highlighted the issue of milk procurement by states in view of the shortage of commodity. He had said states looking to procure milk will have to increase the procurement price of milk. Of the total milk produced, about 50% is consumed by the village households, while the remaining 50% is considered marketable surplus. The organised sector accounts for about 30% of the marketable surplus. Most of the dairy cooperatives build their quota of milk powder in winter, when supply of milk is good.
This is then used as a buffer in summer to deal with any shortfall. But, this year, cooperatives have been unable to build this buffer due to the drought forcing the government to resort to imports.
Tuesday, February 23, 2010
Sri Lanka Political News | Online edition of Daily News - Lakehouse Newspapers
Sri Lanka Political News | Online edition of Daily News - Lakehouse Newspapers
Govt says no to milk powder price increase
Irangika RANGE
The Cabinet Sub Committee to control and reduce the Cost of Living headed by President Mahinda Rajapaksa which met at Temple Trees on Tuesday, has decided not to permit an increase in milk powder prices after long deliberations on the prevailing milk powder prices in the local and international markets.
Trade, Marketing Development, Co-operatives and Consumer Services Minister Bandula Gunawardena addressing a media-briefing in Colombo yesterday, said a request from milk powder importing companies for an increase in prices was taken at the meeting. The milk powder importers had requested an increase of Rs 135 on a one kilo packet and Rs 35 on a 400 g packet. But, we did not permit this giving thought to the consumer,” he said.
The Minister said the Finance Ministry has promised to provide relief to milk powder importers by way of tax adjustments on milk powder imports.
He said that false propaganda was being spread in the country that milk powder importers are engaged in creating an artificial milk powder shortage on the basis that the Consumer Affairs Authority had not permitted a price hike.
The Minister rejecting this false reports said milk powder importers have agreed to continuously supply adequate milk powder stocks to the market by using the tax relief provided by the Government.
He said the maximum retail prices of Rs 225 for a 400g milk powder pack and Rs 550 for a one kilo pack will not be changed since the Government has declared milk powder as an essential item.
The Government has continuously intervened to reduce milk powder prices on several occasions to provide relief to the people. Milk powder importers requested to increase the price up to Rs 320 for a 400g milk pack during the global economic crisis in 2008. Despite the negative impact, the Government took measures to remove all taxes imposed on the milk powder importers providing relief for both consumers and milk powder importers at that same time. Then the price was reduced to Rs 275 for a 400g milk pack. Again the milk powder prices were reduced twice upto Rs 245 in July 2009 and Rs 225 in November 2009.
Govt says no to milk powder price increase
Irangika RANGE
The Cabinet Sub Committee to control and reduce the Cost of Living headed by President Mahinda Rajapaksa which met at Temple Trees on Tuesday, has decided not to permit an increase in milk powder prices after long deliberations on the prevailing milk powder prices in the local and international markets.
Trade, Marketing Development, Co-operatives and Consumer Services Minister Bandula Gunawardena addressing a media-briefing in Colombo yesterday, said a request from milk powder importing companies for an increase in prices was taken at the meeting. The milk powder importers had requested an increase of Rs 135 on a one kilo packet and Rs 35 on a 400 g packet. But, we did not permit this giving thought to the consumer,” he said.
The Minister said the Finance Ministry has promised to provide relief to milk powder importers by way of tax adjustments on milk powder imports.
He said that false propaganda was being spread in the country that milk powder importers are engaged in creating an artificial milk powder shortage on the basis that the Consumer Affairs Authority had not permitted a price hike.
The Minister rejecting this false reports said milk powder importers have agreed to continuously supply adequate milk powder stocks to the market by using the tax relief provided by the Government.
He said the maximum retail prices of Rs 225 for a 400g milk powder pack and Rs 550 for a one kilo pack will not be changed since the Government has declared milk powder as an essential item.
The Government has continuously intervened to reduce milk powder prices on several occasions to provide relief to the people. Milk powder importers requested to increase the price up to Rs 320 for a 400g milk pack during the global economic crisis in 2008. Despite the negative impact, the Government took measures to remove all taxes imposed on the milk powder importers providing relief for both consumers and milk powder importers at that same time. Then the price was reduced to Rs 275 for a 400g milk pack. Again the milk powder prices were reduced twice upto Rs 245 in July 2009 and Rs 225 in November 2009.
Friday, February 19, 2010
SK Foods Former Owner and CEO Salyer Indicted in Sacramento | Press Releases @ Your Story
SACRAMENTO, Calif., Feb. 18
Vice President for Operations Agrees to Plead Guilty to Related Charges
SACRAMENTO, Calif., Feb. 18 /PRNewswire-USNewswire/ — U.S. Attorney Benjamin B. Wagner announced today that a federal grand jury has returned a seven-count indictment charging Frederick Scott Salyer, 54, of Pebble Beach, Calif., with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), in connection with his direction of various schemes to defraud SK Foods' corporate customers through bribery and food misbranding and adulteration, and with wire fraud and obstruction of justice.
Additionally, SK Foods former Vice President for Operations Steven James King, 46, of Visalia, Calif., was charged this morning with one count of food adulteration and misbranding. He has agreed to plead guilty and to cooperate in the ongoing investigation and prosecution.
These cases are the product of a joint and extensive investigation by the FBI, the IRS-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and the U.S. Department of Justice's Antitrust Division.
According to Assistant U.S. Attorney Sean C. Flynn, who is prosecuting the case with Barbara Nelson and Richard Cohen of the San Francisco Field Office of the Antitrust Division, between 1990 and 2008, Salyer was the owner and served as chief executive officer of SK Foods LP, a grower, processor and distributor of tomato products and other food products for sale nationwide. SK Foods declared bankruptcy in May 2009, and its assets were purchased by the Singapore-based Olam International.
According to the indictment, SK Foods and its related corporate entities constituted a racketeering enterprise, an organization that Salyer directed, and other SK Foods leaders and employees helped to further through a variety of illicit activities. It is alleged that over a period of 10 years, Salyer orchestrated a number of wide-ranging schemes whereby SK Foods regularly paid bribes to the purchasing managers of many of its customers such as Kraft Foods Inc., Frito-Lay Inc., B&G Foods Inc., and Safeway Inc., to ensure that those customers purchased processed tomato products from SK Foods rather than from its competitors, and that they purchased the product from SK Foods at elevated, above-market prices. The indictment alleges that some bribes were made in order to wrongfully obtain its competitor's proprietary bid information.
As the racketeering enterprise's leader and primary decision maker, Salyer is also alleged to have directed a widespread practice of selling and shipping processed tomato product that did not meet contractual specifications, contained mold levels in excess of the thresholds established by the FDA and was thus unsalable domestically. The indictment alleges that at Salyer's direction, various individuals at SK Foods falsified both internal and customer-bound documentation to make the product appear as if it were legal and contractually compliant when, in fact, it was not.
Salyer is also charged with obstructing justice by ordering the alteration and falsification of certain SK Foods' corporate records after the government's investigation of the company became known. Specifically, the indictment alleges that two weeks after former SK Foods sales broker and Director Randall Lee Rahal pleaded guilty to racketeering, money laundering, and antitrust charges in December 2008, Salyer ordered certain individuals to alter the minutes of a Dec. 14, 2007, SK Foods Board of Directors meeting to eliminate any reference to Rahal as a director of the company.
On Feb. 4, 2010, FBI Special Agents arrested Salyer at Kennedy International Airport in New York City, based on a criminal complaint charging him with 20 counts of mail and wire fraud. According to that complaint, Salyer left the United States in October 2009, following the guilty pleas of several employees of SK Foods and some of its customers, intending to relocate abroad permanently. Salyer had instructed a subordinate to sell many of Salyer's belongings and had transferred millions of dollars from bank accounts formerly associated with SK Foods entities to bank accounts in the Caribbean and Liechtenstein. The complaint alleged that Salyer spoke with a former SK Foods employee about obtaining permanent residence status in Uruguay, Paraguay, Andorra and France because he believed he would not be extradited from these countries. Salyer had booked a flight back to Europe the next day, Feb. 5, 2010. Instead, Salyer made his initial appearance before U.S. Magistrate Judge Steven Gold in Brooklyn, N.Y., that afternoon. Judge Gold denied Salyer bail, stating that Salyer's efforts constituted one of the "most elaborate schemes to flee he had ever seen."
According to the charges filed against King, between 1994 and 2009, he served in a variety of positions, most recently as SK Foods' Vice President for Operations. In that role, he was responsible for overseeing and managing SK Foods production facilities in Williams and Lemoore. He also assisted in managing SK Foods' inventory of processed tomato and other food products, and arranging for the shipment of those food products to SK Foods customers. King has agreed to plead guilty to falsifying and directing other SK Foods employees to falsify various SK Foods' quality control documents and to ship adulterated and misbranded tomato product to various SK Foods customers. He has admitted that his actions were conducted at the express instruction and direction of Salyer, and with the assistance of other senior leaders and directors of SK Foods, and were intended to make it appear to customers as if particular shipments of processed tomato product were compliant with USDA and FDA standards, and with customer specifications, when in fact they were not. King is expected to appear in U.S. District Court in Sacramento in the near future to enter his guilty plea.
The current charges against Salyer and King are the latest in the ongoing investigation of conduct at SK Foods. See attached chart for details. That investigation has not yet been concluded.
The maximum statutory penalty on racketeering charges against Salyer is 20 years in prison, a fine of up to $250,000, and the forfeiture of any interest, property or proceeds acquired or maintained as a result of the racketeering activity. The wire fraud and obstruction charges against Salyer also are punishable by up to 20 years in prison. The food misbranding and adulteration charges against King carry a three-year maximum sentence. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
SOURCE U.S. Department of Justice
Vice President for Operations Agrees to Plead Guilty to Related Charges
SACRAMENTO, Calif., Feb. 18 /PRNewswire-USNewswire/ — U.S. Attorney Benjamin B. Wagner announced today that a federal grand jury has returned a seven-count indictment charging Frederick Scott Salyer, 54, of Pebble Beach, Calif., with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), in connection with his direction of various schemes to defraud SK Foods' corporate customers through bribery and food misbranding and adulteration, and with wire fraud and obstruction of justice.
Additionally, SK Foods former Vice President for Operations Steven James King, 46, of Visalia, Calif., was charged this morning with one count of food adulteration and misbranding. He has agreed to plead guilty and to cooperate in the ongoing investigation and prosecution.
These cases are the product of a joint and extensive investigation by the FBI, the IRS-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and the U.S. Department of Justice's Antitrust Division.
According to Assistant U.S. Attorney Sean C. Flynn, who is prosecuting the case with Barbara Nelson and Richard Cohen of the San Francisco Field Office of the Antitrust Division, between 1990 and 2008, Salyer was the owner and served as chief executive officer of SK Foods LP, a grower, processor and distributor of tomato products and other food products for sale nationwide. SK Foods declared bankruptcy in May 2009, and its assets were purchased by the Singapore-based Olam International.
According to the indictment, SK Foods and its related corporate entities constituted a racketeering enterprise, an organization that Salyer directed, and other SK Foods leaders and employees helped to further through a variety of illicit activities. It is alleged that over a period of 10 years, Salyer orchestrated a number of wide-ranging schemes whereby SK Foods regularly paid bribes to the purchasing managers of many of its customers such as Kraft Foods Inc., Frito-Lay Inc., B&G Foods Inc., and Safeway Inc., to ensure that those customers purchased processed tomato products from SK Foods rather than from its competitors, and that they purchased the product from SK Foods at elevated, above-market prices. The indictment alleges that some bribes were made in order to wrongfully obtain its competitor's proprietary bid information.
As the racketeering enterprise's leader and primary decision maker, Salyer is also alleged to have directed a widespread practice of selling and shipping processed tomato product that did not meet contractual specifications, contained mold levels in excess of the thresholds established by the FDA and was thus unsalable domestically. The indictment alleges that at Salyer's direction, various individuals at SK Foods falsified both internal and customer-bound documentation to make the product appear as if it were legal and contractually compliant when, in fact, it was not.
Salyer is also charged with obstructing justice by ordering the alteration and falsification of certain SK Foods' corporate records after the government's investigation of the company became known. Specifically, the indictment alleges that two weeks after former SK Foods sales broker and Director Randall Lee Rahal pleaded guilty to racketeering, money laundering, and antitrust charges in December 2008, Salyer ordered certain individuals to alter the minutes of a Dec. 14, 2007, SK Foods Board of Directors meeting to eliminate any reference to Rahal as a director of the company.
On Feb. 4, 2010, FBI Special Agents arrested Salyer at Kennedy International Airport in New York City, based on a criminal complaint charging him with 20 counts of mail and wire fraud. According to that complaint, Salyer left the United States in October 2009, following the guilty pleas of several employees of SK Foods and some of its customers, intending to relocate abroad permanently. Salyer had instructed a subordinate to sell many of Salyer's belongings and had transferred millions of dollars from bank accounts formerly associated with SK Foods entities to bank accounts in the Caribbean and Liechtenstein. The complaint alleged that Salyer spoke with a former SK Foods employee about obtaining permanent residence status in Uruguay, Paraguay, Andorra and France because he believed he would not be extradited from these countries. Salyer had booked a flight back to Europe the next day, Feb. 5, 2010. Instead, Salyer made his initial appearance before U.S. Magistrate Judge Steven Gold in Brooklyn, N.Y., that afternoon. Judge Gold denied Salyer bail, stating that Salyer's efforts constituted one of the "most elaborate schemes to flee he had ever seen."
According to the charges filed against King, between 1994 and 2009, he served in a variety of positions, most recently as SK Foods' Vice President for Operations. In that role, he was responsible for overseeing and managing SK Foods production facilities in Williams and Lemoore. He also assisted in managing SK Foods' inventory of processed tomato and other food products, and arranging for the shipment of those food products to SK Foods customers. King has agreed to plead guilty to falsifying and directing other SK Foods employees to falsify various SK Foods' quality control documents and to ship adulterated and misbranded tomato product to various SK Foods customers. He has admitted that his actions were conducted at the express instruction and direction of Salyer, and with the assistance of other senior leaders and directors of SK Foods, and were intended to make it appear to customers as if particular shipments of processed tomato product were compliant with USDA and FDA standards, and with customer specifications, when in fact they were not. King is expected to appear in U.S. District Court in Sacramento in the near future to enter his guilty plea.
The current charges against Salyer and King are the latest in the ongoing investigation of conduct at SK Foods. See attached chart for details. That investigation has not yet been concluded.
The maximum statutory penalty on racketeering charges against Salyer is 20 years in prison, a fine of up to $250,000, and the forfeiture of any interest, property or proceeds acquired or maintained as a result of the racketeering activity. The wire fraud and obstruction charges against Salyer also are punishable by up to 20 years in prison. The food misbranding and adulteration charges against King carry a three-year maximum sentence. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
SOURCE U.S. Department of Justice
Thursday, February 18, 2010
Business Recorder [Pakistan's First Financial Daily]
TCP's second sugar tender: lowest bid of $585 per ton received
RIZWAN BHATTI
RIZWAN BHATTI
KARACHI (February 18 2010): A bid of $585 per ton (cost & freight) has come for the import of 50,000 tons of sugar, in response to Trading Corporation of Pakistan's second tender to import 200,000 tons of white refined sugar. After receiving an offer of $875 per ton in the first sugar import tender and rising trend in commodity prices in the world market due to massive shortfall, TCP and stakeholders were, therefore, expecting a higher bid in the second tender.
However, Corporation has received a bid of $585 per ton, which is even much lower than the world sugar price of some $700-750 per ton (Free on board). TCP's second and third tender, which were merged on the directives of Competition Commission of Pakistan (CCP), for the import of 0.2 million tons sugar was opened on Wednesday at TCP head office.
Second sugar import tender of 150,000 tons and third tenders of 50,000 tons were due to open on February 13 and 15, respectively, however, on Friday 13, the CCP conducting a hearing allowed containerised shipment of sugar and instructed TCP to merge these tender and open both tender on February 17, 2010.
Therefore, combined sugar tender for the import of 200,000 tons was opened jointly, in which some six international bidders have shown interest to supply the commodity at price of $585-849.15 per ton (C&F). While World Base Trading, the lowest bidder of first tender, has not participated in the tender. Surprisingly, two bidders have offered to supply at a low price of $585-699 per ton, which is almost matching the price of world market.
Interestingly, a pre-qualified supplier namely Sadan General Trading through its local agent KZK has offered to supply 50,000 tons of sugar at a lowest price of $585 per ton. The quoted price is very low then the first tender's lowest bid and as compared to world market prices. Sadan General Trading has also offered to supply another quantity of 8,500 tons of sugar at $649 per ton.
In the first tender a non-pre-qualified supplier World Base Trading the lowest offered to supply 50,000 tons of sugar at $723.2 per ton, however first tender was scrapped due to "defective" Standby Letter of Credit (SCBL) of bidder.
In this case lowest bidder is not only a pre-qualified bidder but also, as per TCP requirement, has deposited a bid bond, which is being scrutinised by Corporation.
The second lowest price is also lower then the first tender's lowest offer. State run grain trader has received second lowest bid of American Investment Group, a non-pre-qualified supplier, through its local agent L.A.J.D green, which is agreed to supply 200,000 ton of sugar at a price of $699.20 per ton.
Louis Dreyfus Trading Limited has participated in the tender with an offer of $824.48 per ton for the supply of 20,500 tons of sugar in break bag and 12,500 tons in containers.
Cargil International has shown interest to supply 200,000 tons of sugar at price of $834 per ton in break bulk and some quantity at $827 per tons in shape of containerised shipment. Al-Khaleej Sugar Company Dubai through its local agent United Resources has offered to supply 200,000 tons of sugar at $849 per ton in break bulk. While in case of containerised shipment it would supply sugar at $838 per ton. Agrocorp International Singapore has shown interest to supply 25,000 tons of sugar at $849.15 per ton and another quantity of 25,000 tons at $836.15 per ton.
Sources said that so far TCP is scrutinising the details submitted by the bidding parties and price evolution committee of TCP would meet on Thursday (today) to finalise the tender.
They said that following the directive of the ministry of commerce, the TCP had issued five tenders for the import of 0.5 million tons sugar. First sugar import tender of 0.15 million tons has scrapped, as the lowest bidder deposited a defective Standby Letter of Credit. Remaining tenders are scheduled to be opened this month, the next one due on February 18 for the import of 50,000 ton of refined sugar.
It my be mentioned here that Pakistan has decided to import some 1.2 million ton of sugar to meet the local demand and so far TCP has issued tender for the import of some 0.5 million ton. While reaming tender is likely to issue soon by TCP, if private traders refuse to import sugar.
Copyright Business Recorder, 2010
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However, Corporation has received a bid of $585 per ton, which is even much lower than the world sugar price of some $700-750 per ton (Free on board). TCP's second and third tender, which were merged on the directives of Competition Commission of Pakistan (CCP), for the import of 0.2 million tons sugar was opened on Wednesday at TCP head office.
Second sugar import tender of 150,000 tons and third tenders of 50,000 tons were due to open on February 13 and 15, respectively, however, on Friday 13, the CCP conducting a hearing allowed containerised shipment of sugar and instructed TCP to merge these tender and open both tender on February 17, 2010.
Therefore, combined sugar tender for the import of 200,000 tons was opened jointly, in which some six international bidders have shown interest to supply the commodity at price of $585-849.15 per ton (C&F). While World Base Trading, the lowest bidder of first tender, has not participated in the tender. Surprisingly, two bidders have offered to supply at a low price of $585-699 per ton, which is almost matching the price of world market.
Interestingly, a pre-qualified supplier namely Sadan General Trading through its local agent KZK has offered to supply 50,000 tons of sugar at a lowest price of $585 per ton. The quoted price is very low then the first tender's lowest bid and as compared to world market prices. Sadan General Trading has also offered to supply another quantity of 8,500 tons of sugar at $649 per ton.
In the first tender a non-pre-qualified supplier World Base Trading the lowest offered to supply 50,000 tons of sugar at $723.2 per ton, however first tender was scrapped due to "defective" Standby Letter of Credit (SCBL) of bidder.
In this case lowest bidder is not only a pre-qualified bidder but also, as per TCP requirement, has deposited a bid bond, which is being scrutinised by Corporation.
The second lowest price is also lower then the first tender's lowest offer. State run grain trader has received second lowest bid of American Investment Group, a non-pre-qualified supplier, through its local agent L.A.J.D green, which is agreed to supply 200,000 ton of sugar at a price of $699.20 per ton.
Louis Dreyfus Trading Limited has participated in the tender with an offer of $824.48 per ton for the supply of 20,500 tons of sugar in break bag and 12,500 tons in containers.
Cargil International has shown interest to supply 200,000 tons of sugar at price of $834 per ton in break bulk and some quantity at $827 per tons in shape of containerised shipment. Al-Khaleej Sugar Company Dubai through its local agent United Resources has offered to supply 200,000 tons of sugar at $849 per ton in break bulk. While in case of containerised shipment it would supply sugar at $838 per ton. Agrocorp International Singapore has shown interest to supply 25,000 tons of sugar at $849.15 per ton and another quantity of 25,000 tons at $836.15 per ton.
Sources said that so far TCP is scrutinising the details submitted by the bidding parties and price evolution committee of TCP would meet on Thursday (today) to finalise the tender.
They said that following the directive of the ministry of commerce, the TCP had issued five tenders for the import of 0.5 million tons sugar. First sugar import tender of 0.15 million tons has scrapped, as the lowest bidder deposited a defective Standby Letter of Credit. Remaining tenders are scheduled to be opened this month, the next one due on February 18 for the import of 50,000 ton of refined sugar.
It my be mentioned here that Pakistan has decided to import some 1.2 million ton of sugar to meet the local demand and so far TCP has issued tender for the import of some 0.5 million ton. While reaming tender is likely to issue soon by TCP, if private traders refuse to import sugar.
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Wednesday, February 17, 2010
Average milk price increases - Weekly Times Now
Average milk price increases
DAIRY Australia has increased its end of year average farmgate price by 10c/kg milk solids, but will not be drawn on an estimated opening price for next season.
The Dairy Australia Situation and Outlook 2010 February update cites uncertainty and volatility surrounding the international market.
Dairy Australia knowledge and strategy manager, Joanne Bills, said an opening price range would not be clear until later this season.
"It is still really early to speculate where the price will be," Ms Bills said.
"It needs to be a couple more months down the track to see how the commodity price is tracking and how the exchange rate is placed in the last quarter of the year."
Last October, Dairy Australia forecast the end of season farmgate milk price of between $4 and $4.30/kg milk solids.
However, following a rise in world dairy prices and indications from major Australian processors of another two milk price step-ups, this figure has been revised to $4.40/kg milk solids or about 34c/litre.
The report also said spot prices for major dairy commodities have increased about 80 per cent over the past year as a result of a reduction in supply.
However, Australian export returns have increased by only 30 per cent, resulting in a lag in farmgate returns.
The strengthening Australian dollar and dairy companies' approach to selling export products has had a negative effect on farmgate prices.
Ms Bills said companies always sold a portion of their product via contract to long-term customers and this was often at a different price to the spot market, leaving the remaining product to be sold on the spot market.
"Spot prices move a lot faster up or down than contracts, which are usually in place for six months," she said.
A drop in production this season has resulted in less milk being available for export, more milk tied-up in contract sales and less available for opportunistic sales on the spot market.
The good news for dairy farmers, according to the report, is that grain prices remain at three-year lows, the European Union export subsidies are now set at zero and the US has abandoned its export subsidy scheme.
The potential for further interest rates rises could hinder dairy farmers in the coming months by providing support for a strong Australian dollar.
Ms Bills said rate rises could also push up the cost of financing and hurt dairy farmers who had to increase their short-term debt early in the season.
She said the fast rise of dairy product prices could hamper demand by turning consumers to cheaper dairy substitutes such as soybeans and palm oil.
Meanwhile, Fonterra announced a milk price step-up to all of its Tasmanian and Victorian suppliers last week of 12c/kg of butterfat and 30c/kg protein.
Fonterra's milk price is now $4.26/kg of milk solids.
The increase will be back-paid to the start of the season.
Corn and soybean Progress Report
Corn and soybean Progress Report
By Darrel Good
(AXcess News) Springfield, IL - In its February report, the USDA's World Agricultural Outlook Board revised the projections of 2009-10 marketing year corn and soybean exports. The marketing year is nearing the midpoint, so that prospects for the year are coming into better focus.
U.S. corn exports for the current marketing year are projected at 2 billion bushels, 50 million below the January projection, but 142 million above the very low level of a year ago. The projection is 437 million bushels below the record exports established in the 2007-08 marketing year. From September 1, 2009 through February 4, 2010, the USDA reported corn export inspections of 694 million bushels, 14 million more than the total of a year earlier. From September through December 2009, Census Bureau exports exceeded export inspections by 51 million bushels. Last year, Census Bureau estimates through February exceeded inspections by 35 million bushels. If the 51 million bushel margin has been maintained since December this year, cumulative exports are about 30 million larger than those of a year ago. To reach the USDA projection of 2 billion bushels for the year, weekly shipments need to average about 42.2 million bushels from now through August. To date, exports have averaged only 33.2 million bushels per week.
As of February 4, 2010, the USDA reported that 469 million bushels of corn have been sold for export, but not yet shipped. Unshipped sales a year earlier totaled only 373 million bushels. Export commitments (shipments plus sales) are currently near 1.21 billion bushels. Weekly sales now need to average about 26.6 million bushels per week in order for commitments to reach 2 billion bushels. For the 4 weeks ended February 4, sales averaged 41.1 million bushels. The pace of outstanding export sales is encouraging, but the pace of shipments will have to accelerate substantially to reach the projection of 2 billion bushels.
U.S. soybean exports during the current marketing year are projected at 1.4 billion bushels, 25 million bushels above the January projection and 117 million bushels above the record exports of a year ago. From September 2009 through February 4, 2010, the USDA reported export inspections of 978 million bushels, 262 million above the cumulative total of a year ago. From September through December 2009, Census Bureau soybean export estimates exceeded inspections by 15 million bushels. Through February last year, Census Bureau estimates exceeded inspections by 42 million bushels. If the 15 million bushel difference between the Census Bureau and inspections estimates has been maintained since December, current exports exceed those of a year ago by 235 million bushels. To reach the USDA projection of 1.4 billion bushels for the year weekly shipments need to average 13.7 million bushels per week from now through August 2010. To date, exports have averaged 44.3 million bushels per week.
As of February 4, the USDA reported that 313 million bushels of soybeans had been sold for export but not yet shipped. The total of those outstanding sales was 222 million bushels a year ago. Weekly sales now need to average only about 3.2 million bushels to reach total commitments of 1.4 billion bushels. Weekly sales have begun the seasonal decline, averaging 12.8 million bushels for the 2 weeks ended February 4. Sales should continue to decline as the record South American crop comes to market. That crop is now forecast at 4.754 billion bushels, 1.244 billion larger than the drought reduced crop of 2009.
The USDA projects 2009-10 marketing year soybean meal exports at a record 10 million tons, 17.5 percent larger than exports of a year ago. The Census Bureau reports exports during the first quarter of the year at 3.439 million tons, 65 percent above the first quarter total of last year. Soybean oil exports are projected at a record 3.25 billion pounds, 48 percent larger than exports of a year ago. For the first quarter of the marketing year, the Census Bureau reports exports of 952 million pounds, 164 percent larger than exports of a year ago. Last year, exports were small in the first half and large in the second half of the year. Like soybean exports, the pace of meal and oil shipments will slow with the availability of the South American crop.
Source: Darrel Good, Agricultural Economist, University of Illinois
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