Freight fall may not benefit commodity imports

Suresh P. Iyengar Mumbai, Oct 6 The fall in freight rates is unlikely to benefit commodity imports due to significant depreciation in value of rupee against dollar. In a bid to fight the spiralling inflation, the Government has banned exports of most agriculture commodities (barring sugar) and restricted metal and ore shipments. Given the fluid global economic conditions, import of edible oil seems to be thriving business while there is a good demand for Indian oil meal in the overseas market. Freight accounts for about 10 per cent of the total import cost of any agriculture commodity. Mr K.C. Bhartia, President, Pulses Importers Association of India, said the nominal reduction in freight cost has been offset by the rupee depreciation and high domestic transportation cost. Pulses imports In fact, Mr Bhartia said, pulses... [read full story]