NYBOT 11.50 cents per pound = US$254 per mt
Freight from Brazil to Middle East = US$ 95 per mt
Freight from India WC to Middle East = US$ 35 per mt
Discount of Indian raws = US$ 25 per mt
India's locational advantage = US$ 35 per mt
Mathematics say that Middle East must buy only from India, but it isn't exactly happening. Let me try and get some rationale behind this :
1. Non availability of containers and rakes for movement
2. Uncertainty over India's production which is resulting is speculative bull run in recent weeks.
3. Today it makes sense to sell in domestic market.
4. Operational/ procedural hurdles.
5 Lack of awareness and knowledge about international market and international trade.
whatever said and done, today India is lacking golden opportunity to establish itself as a reliable supplier. If India is able to do that then it can be a win-win situation for all be it farmer, miller, trader or even Govt. Till the time we attain that we'll continue to struggle with a cycle of glut to deficiency and keep burdening farmers with unknown future.
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