Gulfood ConclusionGanesh Agro
Since last report, the weather at the major producing centers in India is very good, which might have a positive effect on the yield and on the quality of the product.
SIT investigation for business done under advance licence had mentally and financially disturbed the major players of the trade, they are facing lot of issues due to customs action and the fact that IEC licences are placed under the caution list, which means their exports are being verified and only if the custom approves the cargo it can move out of the country which had also slowed down the off take of Kabuli Chickpeas in the international market
Chick peas market is down in Gulfood sellers are selling 9 mm from USA at $750 or less, and also Turkish chick peas are down. Most of the buyers for big calibres at this time are silent and holding steady. We expect the market to come down after the Gulfood exhibition, so it is advised to create your position by looking at the global market. Business in the exhibition for Major products is very dull due to the effect of corona virus in China, it will have a serious effect on world supply chain and on the payment module of the companies.
Majority of the products in spices have hit rock bottom prices, since there is lack in trading we advise you to keep yourself away from any speculative position, which may be easier said than done.
Since last 2 years in Indian, In Kabuli we have observed that the market is starched to a level where sales are beyond imagination, projecting that there will be a big export demand. However, the buyers have become smarter and in the end the supply chain suffers.
As per our sources, stock of chickpeas in Algeria is somewhere between 8000 tons of Indian and Mexican chickpeas for big sizes, which would be enough to fulfil the demand In Ramadan. There is a big payment crisis as most of the cargo from India & Mexico have not yet received payments of the goods that were delivered in December. Among other things Indian ports have received almost 30,000 tons of small chickpeas in past 20-25 day’s period from various origins like Russia, Argentina, Turkey and USA, which the Indian importers had to clear by paying the import duty.
It is also noticed that if the prices of the big size chickpeas move up very sharply internationally, buyers don’t mind to switch to other alternatives like buying smaller size chickpeas.