India's palm oil imports hit 27-month low, buyers pick cheaper soft oils: Dealers - Exportify Pulse Edition - June 09, 2023

India's palm oil imports hit 27-month low, buyers pick cheaper soft oils: Dealers

India's palm oil imports sank to a 27-month low in May as buyers cancelled expensive cargoes of the edible oil and replaced them with cheaper soyoil and sunflower oil, six dealers told Reuters on Tuesday.

Palm oil imports by India fell to 441,000 tonnes last month, down 14% from 510,094 tonnes in April, according to average estimates from the dealers. May imports were the lowest since February 2021, the dealers added.

The drop in purchases by the world's biggest importer of vegetable oils could weigh on palm oil prices, which are already trading near their lowest level in 30 months.

India buys palm oil mainly from Indonesia, Malaysia - the top two producers - and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.

Price-sensitive Asian buyers typically rely on palm oil because of the low cost and quick shipping times.

But the edible oil started trading at a premium to soyoil and sunflower oil over the past few months, prompting buyers to shift to the cheaper soft oils, said Sandeep Bajoria, CEO Sunvin Group, a vegetable oil brokerage and consultancy firm.

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Wheat prices jump following collapse of major dam in southern Ukraine

WASHINGTON: Global prices for wheat and corn soared Tuesday after a major dam in Ukraine collapsed, renewing market fears about the fragility of the country's ability to ship food to Africa, the Middle East and parts of Asia as it fights a war with Russia.

Wheat prices gained 2.4% in early trading Tuesday on the Chicago Mercantile Exchange, to $6.39 a bushel. The cost of corn rose more than 1%, to $6.04 a bushel, and oats gained 0.73%, to $3.46 per unit. Prices were higher earlier in the day but faded.

The destruction of the Kakhovka dam and hydroelectric power station, which sits in a Russian-controlled area on the Dnieper River, raised concerns about disruption to Ukraine's affordable supplies of wheat, barley, corn and sunflower oil getting to developing nations where people are struggling with hunger and high food prices.

“Anytime this war shows signs of getting further escalated, there’s a lot of concern,” said Joseph Glauber, senior research fellow at the International Food Policy Research Institute. “Markets react to that.”

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EEPC to focus on WANA region for engineering goods exports

Engineering Exports?Promotion Council on Wednesday said it would focus on the West Asian and North African countries for enhancing exports to the WANA region. The?EEPC, in a statement, said there is ample scope for increasing bilateral trade with the WANA countries, especially for engineering exports.?The council is also holding an exhibition 'INDEE' at?Jordan, which is India's fourth largest trading partner in the region.?In 2022, India's engineering exports to Jordan stood at $136.4 million, which was 33 per cent higher than the target of $109 million for the period.?"Jordan is strategically located in the western Asian region," the statement said, quoting EEPC chairman?Arun Kumar Garodia.

He said India and Jordan share vibrant social, economic and business ties with expanding trade and investment flows between the two countries.?

According to him, Jordan has a?free trade agreement?with the US for which most products exported from the former to the latter attract zero customs duty.?

As a consequence of this, it is beneficial for Indian companies to export to the US via Jordan besides shipping out to the neighbouring countries of Syria, Lebanon, Iraq and Israel among others.

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Indian rates at three-month high on low supplies, paddy price hike

Prices of rice exported from top hub India jumped to their highest since early March this week, driven by tight supplies and a move to raise the government-mandated price for paddy, while rates for the staple from Thailand eased on lower demand.

India's 5% broken parboiled variety was quoted at $388-$395 per tonne, up from last week's $375-$380.

India on Wednesday raised the price at which it will buy new-season common rice paddy from farmers by 7% to 2,183 rupees per 100 kg.

"Paddy prices have gone up in the local market in the last one month anticipating a hike in support prices. It is ultimately pushing up rice export prices," said Himanshu Agarwal, executive director at Satyam Balajee, an exporter.

Neighbouring Bangladesh imported 634,000 tonnes of rice to ensure food security in the first 11 months of the current financial year ending in June, data from its food ministry showed.

Bangladesh, which often requires imports to cope with shortages caused by natural calamities, doesn't need to import rice in the coming fiscal year given good domestic yield, Food Minister Sadhan Chandra Majumder had said.

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Editor's Note

5 EMERGING TRENDS IN SUPPLY CHAIN MANAGEMENT

Artificial Intelligence and Automation

The use of AI and automation is becoming increasingly common in the supply chain industry, mostly geared toward streamlining and optimizing the supply chain process, by automating mundane and repetitive tasks.

AI-based systems can also be used to identify and address potential issues in the supply chain such as delays, bottlenecks, and disruptions from unforeseen circumstances. These systems can also be used to improve the accuracy and speed of inventory management and forecasting.

In addition to AI and automation, the use of robotic process automation (RPA) is also becoming increasingly popular in the management of supply chains globally. RPA enables the automation of repetitive tasks such as data entry, document processing and order tracking, thereby reducing manual labor and increasing efficiency in the supply chain process.

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Supply Chain as a Service

The concept of Supply Chain as a Service (SCaaS) is also gaining traction in the industry. The idea is to outsource supply chain operations to an external provider, who will manage the entire process from procurement to delivery. This enables organizations to focus on their core competencies and reduce their overhead costs.

SCaaS also enables organizations to take advantage of the latest technologies and innovations, without the need to invest in the necessary infrastructure. For example, they can use cloud-based solutions, such as predictive analytics and machine learning, to gain insights into the supply chain process and make informed decisions.

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Circular Supply Chain

The concept of the circular supply chain is also gaining ground in the industry. The idea is to create a closed-loop supply chain, which is more sustainable and efficient. This is done by reusing and recycling materials and reducing waste.

The circular supply chain is becoming increasingly important due to increasing global focus on sustainability and environmental protection. Organizations are looking for ways to reduce their carbon footprint and become more ecofriendly. And the circular supply chain is a great way to achieve this.

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Risk Management and Resiliency

Risk management and resiliency are steadily becoming prominent in the supply chain domain. Organizations need to be able to anticipate and manage risks to prevent disruptions in the supply chain process. This can be done by implementing risk management processes such as scenario planning, risk assessment and risk mitigation.

Organizations are also focusing on building resilient supply chains that are better equipped to handle disruptions and unexpected events. This is done by implementing strategies such as diversifying the supply chain, improving communication and investing in alternative suppliers.

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Increased Focus on Sustainability

Sustainability is becoming a key focus area for all industry verticals, and not just limited to supply chain. Organizations are looking for ways to reduce their environmental impact and become more ecofriendly. This can be done by implementing green initiatives such as renewable energy sources, energy-efficient technologies and waste reduction.

Organizations are also focusing on ethical sourcing, by ensuring that their suppliers are following ethical practices. This includes ensuring that their suppliers are not using child labor or engaging in any other unethical practices.

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Conclusion

The supply chain industry is constantly evolving, with new trends and technologies emerging every day. It is important for organizations to stay up to date with the latest trends in order to remain competitive and improve efficiency, effectiveness, and resiliency of supply chain operations.

Source: gep