India Extends MBR Exemption

NEW DELHI - Mar 30/17 - SNS -- India's agriculture ministry has extended its methyl bromide exemption for cargoes shipped before June 30.

The exemption will allow cargoes to be shipped from countries which have banned the use of methyl bromide without prior fumigation.

The extension covers cargoes with an bill of lading dated on or before June 30, 2017.

Canadian exporters were hoping for at least a six month extension, which would have allowed them to ship new crop product without fumigating them prior to shipment.

Government officials in India have firmly stated they will not continue to grant exemptions. However, if countries like Canada do not find an acceptable alternative to methyl bromide and if the Indian government becomes convinced pulse production will decline that position could change.

Even so, it is a mistake to assume such a change would occur because domestic availability of pulses is not expected to decline until the 2018 calendar year.

That mainly reflects the impact of weak internal grower markets for pulses, with prices falling below the minimum support price (MSP) in the face of harvest selling pressure.

A more speculative concern is the risk this year's monsoon will be below average, which would impact the quantity of pulses sown during the coming kharif period. The potential impact on rabi season area partly depends on the timing of the heaviest rains and follow on rainfall events leading into the rabi season planting window.