Kochi, Sept. 10 Permits issued for import of white poppy seeds from China, probably for the first time, has pushed down its prices in the domestic market from Rs 350 to Rs 190 a kg. It is expected to drop further to Rs 150 once imports begin from other origins in the coming weeks.
Much of the Indian demand is met by imports as the indigenous production used to remain far below the requirement of estimated 15,000 – 20,000 tonnes a year.
Market sources told Business Line that international prices of white poppy seeds have dropped from $3,400 a tonne to $2,900 in Turkey, a major producer in the world. The prices of blue poppy seeds are expected to fall to $800 a tonne once the Czech produce enters the market. Czech has offered white poppy seeds at $2,200 a tonne.
Poppy seed imports from China is said to be for the first time and it has quoted $2,400 a tonne and at this rate, price in the domestic market would come to Rs 160 a kg, they said. Since the Czech crop is ready for shipments and once they reached the Indian markets, the prices would drop further. Add to this, there are 60 importers spread over the country which will result in tough competition leading to cut in prices benefiting the consumers, they pointed out.
Chinese output
The output of white poppy seeds in China is estimated at 10,000-15,000 tonnes. Following the issuance of import permits last week, “we are getting huge offers from China for minimum 500 tonnes, there are a lot of big sellers due to less offtake,” they said. At the same time, according to reports, poppy seed crop in Turkey, Czech Republic, Spain are said to be huge this year, they said.
Trading sources said once the Free Trade Agreement is signed between India and Turkey, in a bid to enhance the bilateral trade, import duty on poppy seeds is likely to be reduced from the present 25 per cent to 15 per cent. Such a step will result “in more free imports, less hurdles, more trade, lesser prices for consumers”, they said.
“Now, we can import poppy seeds from Turkey, Czech Republic, China and Spain, for which import permits are expected to be issued this week, so monopoly is over now and anybody can import any quantity,” they said.
Unsold stocks
Meanwhile, some of the trading sources said huge stocks are lying unsold, nearly 300 full container load (fcl) of poppy seeds are in transit from Turkey and arrival of this cargo will see the poppy seed prices declining further from Rs 170 a kg.
They alleged that “this year, illegal growing of poppy seeds in Jammu and Kashmir has increased as the climate in the valley is similar to Afghanistan and this crop is catering to the needs of north India markets.”
This factor would also pave the way for drop in poppy seed prices further as the output is believed to be somewhere between 2,000 and 4,000 tonnes, they claimed.
Source : Business Line