india pulses report january 2012

7/30/2019 India Pulses Report January 2012

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Indian Market Report on Pulses

Report Prepared by

Western Australia Trade OfficeIndia

Mumbai93, Jolly Maker Chambers 2225, Nariman PointMumbai - 400 021

Phone: 91-22- 6630 3973 76Fax: 91-22- 6630 3977

January 2012


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TABLE OF CONTENTS

Contents Page No

Executive SummaryMarket Synopsis

Indian Pulses Productiona) Pulses Growing Seasonsb) Indian Pulses production datac) Productivity per h/ad) Integrated Pest Managemente) Post harvest Mgmt technologiesf) Indian Govts Minimum Support

Price (MSP)Consumption

Region wise Pulse Preferences in India

Quality Standards

Marketing Chain

Import Policy

Imports of Pulses

Import Permits

Indian Import Duty

Indian Plant and Quarantine (PQ)RegulationsInternational Quality Standards andGrading SystemStrategic Direction for WA Pulses

SuppliersLocal Representation for Market Entry

Promotional Event

Conclusion

Annexure I Map of Indian States

Annexure II- list of Potential IndianImporters of Pulses

Annexure IIIGlossary of Pulse Varietiesin India

Annexure IV MMTC Tender for Pulses

Annexure V STC Tender for Dun Peas

Disclaimer: Whilst every care has been taken in compiling the information in this report,the Department of State Development and its contractors neither warrant nor representthat the material published herein is accurate or free from errors or omissions. To theextent permissible by law the Department of State Development and its contractors shallnot be responsible or liable for any errors, omissions and misrepresentations madeherein.


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EXECUTIVE SUMMARY

India is now ranked as the single largest producer, importer and consumerof pulsesin the world.Pulses are cultivated and imported to some extent to supplement indigenousproduction solely for human consumption and not for cattle feed.With steadily increasing demographic pressures (total population est. 1.14 billionbased on 2001 census with an annual increase of 18 million) and stagnant acreageand pulses production, domestic crop output is inadequate to meet the entiredemand necessitating annual imports in excess of two million tonnes on a regularbasis

A larger proportion (est.65%) of the Indian population has vegetarian dietaryhabitswith pulses figuring prominently in their daily menu, leading to heavy dependence onpulses as a staple food and primary source of proteins and calories.

Annual total consumption of all types of pulses countrywide is estimated at 17milliontonnes.

As pulses are consumed almost daily by the economically vulnerable sections of the

Indian society more than the middle classes and the affluent, the Indian Governmentmonitors the price situation in the volatile wholesale/retail markets and resorts tocorrective measures to ensure availability at affordable prices by increasing thelocal availability through large scale imports through IndianGovernment tradingorganizations such as the NAFED, MMTC, STC and PEC.

Apart from the Indian Government trading organizations importing pulses againstglobal tenders from time to time, private firms are also allowed to import fromsources of their choice, on their own by securing import permits from the IndianMinistry of AgricultureImport permits contain the names of the overseas supplier, the FOB/C&F prices atIndian discharge ports plus the Plant and Quarantine Stipulations to befulfilledbythe shipper such as the Phyto-Sanitary Certificates, Treatment withMethyl Bromide

etc.Pulse imports into India do not at present attract any Customs or other duties toensure local availability of imported pulses at competitive prices to the commonmasses in this countryThere exists a region-wise preference for specific pulses. Chick peas, Kidney beansand black-eyed beans are popular in Northern India whereas Dun peas, pigeon peasand black matpe are consumed in large quantities in Southern India. Nevertheless asthe Indian pulse market is highly price-conscious, the consumers switch over fromone pulse to another depending upon the relative pricing.Indias imports of pulses during 2006/7(April/March) totaled 2.527 million tonnes ofwhich dried peas including Dun Peas accounted for .1.388 million tonnesWhileAustralia shipped Dun peas totaling 106,841 tonnes worth US$32 million

during 2006/7 and43,885 tonnes worth US$17.88 million during the nine monthsended April/Dec 2007, Canada supplied 862,419 tonnes of Yellow peas ($A218.53million) during 2006/7 and 466,442 tonnes ($A325 million) during April/Dec 2007.WhileAustralia enjoys the monopoly supplier position for Dun Peas, the lower pricedCanadian yellowpea poses stiff competition as Indian importers more often preferthe latter on grounds of pricing.The consensus of opinion amongst pulses commodity analysts is that Indias totalimports might exceed at least three million tonnes per annum by 2010with aproportionate increase in the demand for Dun Peas in which WA is interested.


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While import prospects seem to be quite promising for WA pulses especially DunPeas in the medium to long term in this market, the Indian Plant and QuarantineRegulations with amendments from time to time announced by the Indian Ministry ofagriculture prove to be a major non-tariff barrier.In view ofgeographical proximity and WA reputation as a reliable and consistent

pulses supplier to the Indian market for a long time, there is no reason why WA

cannot increase its existing market share subject to overcoming the PQ non-tariffbarrier.


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INDIAN MARKET REPORT ON PULSES

MARKET SYNOPSIS

India is ranked as the largest producer, importer and consumer of pulses in the world

accounting for nearly 25 % of global production, 15 % of international trade and 27 % ofworld consumption

A significant percentage of Indias total population of over 1.1 billion and growing at over1.7 % per year (Indian official census 2001) depends on pulses to meet their dailyprotein and calorie requirements. Pulses are the staple diet of a large number of Indiansmainly due to vegetarian food habits with religious taboos on meat.

Decades of stagnant acreage under pulses cultivation (20 23 million h/a), low yields(500 600 kgs/ha) and fluctuating production (13 -15 million tonnes per annum) haveled to a steep decline in per capita pulses consumption , a little over 12 kgs at currentlevels.

With a steadily-increasing population, more and more people opting for vegetarianpulse-based food in lieu of meat on health grounds and rising income levels of themiddle classes (exceeding 350 million), demand for pulses shows an upward curve witha widening gap between flagging indigenous output and mounting consumption. Theabove factors put together necessitates large scale imports of pulses averaging 1.5million to 2 million tones each year on a regular basis.

According to pulses trade circles, imports constitute around 10 to 15% of domesticoutput depending upon the local crop in a given year. The import potential in the short,medium and long term seems to be quite promising as sagging local production has tobe supplemented by large scale imports to meet the essential requirements of the Indianmasses. On the basis of population increase and stagnant pulses production, tradesources are of the opinion that annual imports of all varieties of pulses may averagenearly three million tonnes by 2010 from the current existing level of more than twomillion tonnes.

The Indian Governments declared policy is to ensure domestic pulse prices do notincrease in a volatile market so as to be affordable and well within the reach of theeconomically vulnerable sections of Indian society who depend on pulses for their staplediet. The Indian Government keeps a close watch on the price movements from time totime and takes appropriate corrective measures such as large scale bulk importsthrough the Indian Government trading organizations on the basis of global tenders.This exercise is especially undertaken there is less than a year for the next IndianParliamentary Elections. It is politically imperative for the Indian Government to ensurethe domestic availability of pulses at affordable prices. The Indian Department of CivilSupplies has recently issued instructions to the country-wide Fair Price Shops (FPS) toissue pulses at subsidized rates to the economically weaker sections of the societyalong with wheat, rice, edible oils, sugar, kerosene oil and other items of massconsumption.


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INDIAN PULSES PRODUCTION

Total acreage of cultivated land under pulses cultivation has remained stagnant overrecent years at 22 to 23 million hectares.

The country produces a variety of pulses as follows

Type of pulses % of total productionChick peas 40%Pigeon peas 18%Mung bean (Green gram) 9%Lentils (Masoor) 8%Field peas 5%Urad bean (Tur) 11%(Source Indian Institute of Pulses Research, Kanpur

Five Indian States account for more than 80 % of total production as follows.

Indian State % of total outputMadhya Pradesh (Central India) 23Uttar Pradesh (North-East India) 18Maharashtra (Western India) 14Rajasthan (North-West India) 11

Andhra Pradesh (South East India) 9Karnataka (South West India) 6(Source Indian Institute of Pulses Research Kanpur)

In the absence of adequate irrigation facilities, pulses are grown as rain-fed crops in theabove Indian States and the output hinges upon adequate rainfall and precipitation

during the South-west monsoon (May/September). This in turn determines the level ofimports each year to supplement local production. The irrigated area accounts for lessthan 10 % of the total pulse growing area in India. Pulses production in the rain-fedareas is often marred by frequent occurrence of drought and other abiotic stresses.Occasional floods also wash away the standing pulse crops in some regions.

According to the Indian agricultural scientists, pulses own a strategic position in intensiveas well as extensive agriculture as they are an excellent source of dietary protein formillions of people, nutritious food for livestock and a mini-nitrogen plant having profoundameliorative effect on the soil.

The production and acreage under pulses cultivation remained more or less stagnantand has not kept pace with the increase in population each year, primarily due to shiftingof area under pulses cultivation to other more remunerative cereal crops andhorticultural products. The Indian Agriculture Ministrys announcement of MSP (MinimumSupport Price) of Rs.10, 000 ($A300 approx) per tonne earlier this year for the currentwheat crop is likely to influence the Indian farmers decision on crop diversion.


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(a) Pulses growin g seasons:-Pulses in India are harvested in both the Kharif (Sep/Oct)and Rabi (Mar/Apr) seasons.

Kharif Season - The major Kharif pulses are:

Green beans(moong beans)

Black matpePigeon peasCowpeas

Indias annual south-west monsoon rains during 2008 , crucial to pulses production,covered the southern and western parts of the country in early June, ahead of the usualtime of arrival, boosting hopes of good output, but soon weakened which may impactacreage and pulses yield. The monsoon revived by July end and early August, howeverheavy downpours led to a flood-like situation, damaging part of the pulses crop.

A flood-like situation still persists in many parts of Andhra Pradesh in the south andMaharashtra in the west. If the same condition continues for another 15 days, the

Indian Agriculture Ministry officials are of the opinion that overall pulses output in theKharif season is going to get impacted. Should be in past tense. What was thedecision????

The consensus of opinion amongst the pulses traders is that erratic monsoon rains,lower sowing and floods in some of the pulse growing regions may cut the current Kharifoutput this season.

Maharashtra State leads in the Kharif season pulses production. The major producers ofKharif are

State % of pulse production

Maharashtra 24%Rajasthan 15%Uttar Pradesh 13%Madhya Pradesh 10%

Rabi Season: Major Rabi pulses are

Chick peasGreen peasLentils.

Madhya Pradesh State is the principal producer of Rabi pulses crop.State % of pulse productionMadhya Pradesh 33%Uttar Pradesh 19%

Andhra Pradesh 11%Maharashtra 9%


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(b) In d ian pulses production dat a

Year Kharif pulses(million tonnes)

Rabi Pulses(million tonnes )

Total pulsesoutput (milliontonnes)

2004/05 4.72 8.41 13.13

2005/06 4.87 8.52 13.392006/07 4.78 9.49 14.272007/08* 5.50 10.00 15.50

(Source Indian Agriculture Ministry) *Indian Ministry of Agriculture target

The Indian Agriculture Ministrys target is considered over-ambitious with the result thatactual production may fall short as is generally the case in previous years. Recentfloods in parts of Bihar, Maharashtra and Uttar Pradesh will have a direct impact on thequantum of the current crop.

(c) Productivity per h/a

Productivity level of pulses in major pulse producing States during 2005/6 is tabulatedbelow along with acreage under pulses cultivation

All pulses Chick peas Pigeon peasIndian

StatesAreaMillionh/a

YieldKg/ha

AreaMillionh/a

YieldKg/ha

AreaMillionh/a

YieldKg/ha

MadhyaPradesh

4.28 756 2.56 925 0.32 737

UttarPradesh

2.74 805 0.74 893 0.38 961

Maharashtra 3.39 532 1.09 655 1.12 565AndhraPradesh

1.78 773 0.39 1,596 0.49 609

Karnataka 1.92 452 0.39 500 0.60 674Rajasthan 3.41 248 1.08 443 - -Gujarat 0.81 719 = - 0.29 1,089

(Source Pulses Research Institute - Kanpur )

(d) Integrated Pest Management

Pulse crops in India suffer heavy losses due to a variety of diseases, insects, pests andplant parasitic nematodes. Cultivation of resistant and tolerant varieties developed by theIndian Agricultural Research Institute and other such bodies is the most convenientfarming operation, as well as being effective, economic and environmentally safe meansfor sustainable production, however such varieties are not available against major insectpests.

In addition to host plant resistance, substantial advances have been made in Indiatowards other components of integrated pest management such as forecasting, cultural


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practices, bio-agents and bio-pesticides which are accessible to pulses farmersthroughout the country.

Pulses crops in India suffer from several seed borne diseases necessitating seedtreatment with appropriate fungicides to minimize incidence of such diseases. Farmersare generally advised to carry out seed treatment of pulse seeds in India with fungicides

such as carbendazim orthiram @ 2 g/kg of seeds. Similarly wilt/root rot incidence inchickpeas and lentil can be minimized by seed treatment with an antagonist, trichodermaviride.

Use of sex pheromone trap @ 3-5 traps/hectare for monitoring the pest is recommendedfor pulse farming in India. The economic threshold level (ETL) is 1 2 larva et meterrow length.

The integrated pest management strategy comprises the following:

Timely sowing to exploit host avoidance phenomenon,Intercropping chickpea with mustard, barley and linseed

Intercropping pigeon pea with sorghumUse of trap crops like Victa sativa andAfrican giant marigold,Use ofnuclear polyhedrosis virus (NPV) @ 250 LE/hectareUse ofBacillus thuringensis (bt) @ 1 1.5 kg/ha andErection of perches @ 20 30 /per ha to attract insectivorous birds.Spraying with 5% need seed kernel extract(NSKE) orAcgook@ .1.25 l/ha orNeed based use of chemicals like 0.7 % endosulfan or 0.04 % fenvelarate at 15

20 days interval.

(e) Post h arvest management technolog ies-

Pulses being rich in proteins encounter insects and pests damage during storage. Toincrease the shelf life of pulses and avoid post harvest losses, the Indian agriculturalscientists recommend smearing of pulse grains with mustard and mahua oils and inertmaterial like charcoal to the farmers, to control storage losses

The mini-dal (processing) mills concept developed by the Indian Pulses ResearchInstitute, Central Food Technological Research Institute and other institutes in India islikely to gain more and more popularity throughout India as the farmers get higher returnfor their produce, store them for a longer period and generate self-employment

f) Indian Governments Minimum Sup port Price (MSP) for local pulses-

The Indian Government announced Minimum Support price (MSP) for the Kharif andRabi seasons. This is the price at which the farmers can sell to the Indian Governmentprocuring agencies such as the National Agricultural Marketing Federation Limited(NAFED).


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As in the case of wheat, the Indian Ministry of Agriculture has announced revised pricesfor various pulses grown in India for the current Kharif harvest season (September crop)as follows

Pulses MSP for Kharif2007/2008 pmt

MSP for Kharif2008/2009 pmt

% hike

Moong(Green beans) Rs.17,000 Rs.25,200 + 48.2Urad (Black matpe) Rs.17,000 Rs. 25,200 + 48.2

Arhar/Tur(Pigeon peas)

Rs.15,000 Rs 20,000 + 29.3

(Source Indian Ministry of Agriculture announcement on 12 Sep 2008)

The support price hike announced by the Indian Government is designed to encouragefarmers to opt for pulses cultivation so that the total acreage may witness an increase inthe coming season. In India, crop diversion among the farmers is quite populardepending upon the more remunerative crops at a given time

CONSUMPTION

Indias per capita net availability of pulses has declined to less than 36 gms per day ascompared with around 70 gms in the sixties. This is largely due to stagnant productionand steadily increasing population. Annual total consumption of all pulses is reported tohover around 16 to 17 million tonnes necessitating imports in excess of 2 million tonnesto supplement local production which fluctuates from year to year depending on thevagaries of nature.

Not only is Indias population increasing by nearly 18 million per year, but production ofpulses has not kept pace and languished as Indian Government Research programmesand price support schemes (MSP) generally favour cereal grains over pulses. As aresult, per capita availability of pulses has fallen to nearly half of the level of availability

of the early 60s

REGIONWISE PULSE PREFERENCES IN INDIA

North India-Chick peas and products thereof are popular. Chick pea flour is used toprepare various popular snack foods. Kidney beans and black-eyed beans are alsoconsumed in significant quantities in this region.

South IndiaPigeon peas and black matpe are extensively used here. Mung beansflour forms several snack items such as spiced balls of ground pulses.

Throughout Ind iaPeas are cooked and eaten as snack foods or used as filters in

traditional snacks. Split yellow peas and pea flour are increasingly being blended withsimilar looking, but more expensive, split chickpeas and flour.

Lentils are generally used along with rice as dal. Dal, garnished with onions, tomatoesand spices is an indispensable entre in roadside quick, cheap eateries. Dal is alsofound on menus of five-star hotels. Although particular varieties of pulses are preferredin different parts of the country, food habits are easily changed according to price andavailability of pulses. The Indian market is highly price-sensitive and if one particularvariety becomes costly, people switch on to other less expensive varieties.


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Pulses are generally consumed split, either with or without the skins. However, greenpeas and Kabuli chickpeas are consumed whole.On an average around ten % of the production of local (desi) chickpeas and pigeon peasis used as cattle feed.

Main uses of pulses in India are given below

Peas/pulses Chief forms of human consumption in IndiaGreen beans(moong beans)

Used as a vegetable and for making snacks and dals

Chick peas Used for making fine flour which is used for makingsweet dishes, snacks and mixed with wheat flour formaking chapattis (flat bread)

Pigeon peas Consumed as a vegetable with meals, dal, snacksBlack gram Used as a vegetable with meals and for making

Pappadams. Also used to make sweets and snacksChick peas (Kabuli type) Used as a vegetable with meals

Yellow peas (Mattar) Used as a vegetable with meals and for making snackpreparations.

Red Lentils Used as a vegetable with meals and for making snackpreparations mainly consumed in eastern India

QUALITY STANDARDS

In India, there are no quality standards, as yet. Most pulses are classified as FAQ Fairto Average Quality which is the only approved grade in the Indian market system.This grade however is not standardized and consequently traders assess the grain byvisual inspection of colour, texture and size. Moisture content is an importantconsideration while importing pulses.

MARKETING CHAIN

The marketing chain from importers warehouses to the consumer consists of thefollowing value chain in sequence.

Importer

Splitting Plants or dal (processing) mills

Wholesaler/Pulses based food products producers

Retailer

Consumer

In a majority of cases, wholesalers and dal (processing) mills are importers themselves.Frequency of transactions is high at the wholesale level as commodities change hands


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frequently with the intervention of brokers or commission agents. The wholesalersdisplay samples of various varieties of pulses in their shops. After examining thesamples, retailers place orders.

IMPORT POLICY

As per the Indian Government import policy, imports of all types of pulses, with theexception of lupins, is permitted in order to

Supplement local production,Ensure availability at affordable domestic prices for the common massesCounter the effects of fluctuating local production,Prevent large-scale hoardingPrevent speculative activity by commodity traders.

To arrest the speculative activity of traders trying to manipulate domestic prices throughhoarding, the Indian Government arranges imports in bulk against global tendersthrough its trading agencies such as the National Agricultural Co-operative MarketingFederation Ltd. (NAFED), the State Trading Corporation of India Ltd. (STC), PEC

Limited and MMTC. In addition, private importers are also allowed to import direct eitherin bulk or container loads from their preferred sources of overseas supply

India regularly imports the following pulses from the countries indicated against each

Pulse Country of ImportChick peas (desi) quality Australia and CanadaChick peas Kabuli Turkey, Canada and AustraliaDun peas and Yellow peas Australia, Canada, China and UkraineLentils Turkey and SyriaBlack gram, and pigeon peas Myanmar

IMPORTS OF PULSES

Total Indian imports of pulses in recent years are given below

April March Total Volume of Imports(Million Tonnes)

2003/04 2.424

2004/05 1.810

2005/06 2.065

2006/07 2.527

(Source Director General of Foreign Trade. Indian Ministry of Commerce))


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Brief details of imports of various types of pulses are given below in recent years(Apri l /March)

Pulses varietyHarmonisedtariffclassification

2003/4(tonnes)

2004/5(tonnes)

2005/6( tonnes)

2006/7( tonnes)

Dried peas(071310)

700,017 643,178 810,069 1,388,577

Chick peas(071320)

259,239 132,518 281,756 127,318

Lentils(071340)

37,949 26,569 36,114 58,935

Beans(071331039)

205,975 82,032 290,715 608,708

Other pulses 1,221.240 925, 879 647,116 744,014

TOTAL 2,421,420 1,810,176 2,065,770 2.527.552(Source Ministry of Agriculture, Government of India, New Delhi)

Although imports are made throughout the year, the demand for imported pulsesdeclines, leading to a decline in prices when indigenous crops come to the market afterthe harvest

The following table gives country-wise details of pulse imports into India during 2006/7(April/March) and nine months ended April/Dec 2007 (latest period for which Indianofficial import statistics are available)

071333 Kidney beans including wh ite pea beans dried and salted

Source Qty imported2006/7 Tonne

ValueUS$ million

Qty importedApr/Dec07tons

ValueUS$million

Brazil 48 0.03 593 0.47China 43,001 28.68 9,967 8.30Djibouti 110 0.07 24 0.02Ethiopia 2,804 1.38 2,278 1.24Kenya 622 0.35 57 0.03Madagascar 109 0.09Myanmar 9,698 5.66 12,860 8.24Peru 33 0.03

Tanzania 75 0.03Thailand 70 0.06USA 43 0.02Uzbekistan 62 0.06Unspecified 47 0.04TOTAL 36.43 18.36


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07130 Peas (Poss um Sativum ) Dried and s helled

Source ofImports

Imports during2006/7 intonnes)

Value ofimports during2007/8(US$mn)

Imports duringApr/Dec 2007(in tonnes)

Value ofimports during

Apr / Dec 07(US$mn)

Argentina 48 0.01 - -AUSTRALIA 106,841 31.18 43,885 17.88

Canada 862 ,419 218. 53 886,442 325.87Taiwan 498 0.14 - -Denmark 304 0.12 - -

France 106,965 29.95 93,716 33.59Germany 12,180- 2.94. 10,751 4.08Kenya 1,101 0.56Malawi 2,763 1.02 1,472 0.71Myanmar 343 0.10 - -Moldova 1,504 0.35 - -Mozambique 2,391 0.82 40 0.02New Zealand 362 0.11 182 0.06Pakistan 1,280 0.41 175 0.06Russia 20,979 5.04 13,312 4.67Singapore 133 0.03 - -TanzaniaUkraine

11,528121,095

4.4529.50

1,26823,753

0.688.45

USA 136,942 37.14 14,964 54.82TOTAL 358.87 451.42

Chick p eas (Garbanzos) dried and sh elled

Source ofsupply Qty imported2006/7(tons) Value(US$million) Qty.imported(Apr/Dec07) intonnes

Value inUS$ million

AUSTRALIA 74,881 42.93 16,399 9.51Canada 7,982 5.16 864 0.53

China 549 0.36 - -Ethiopia 1,639 0.82 1.380 0.74Myanmar 2 5,710 17.84 36,541 21.46NewCaledonia

47 0.03 - -

Pakistan 22 0.01

Russia 885 0.45 398 0.22South Africa 414 0.24Tanzania 10,159 6.80 20,940 11.81

Turkey 2,970 2.42USA 1,767 1.40 88 0.04Uzbekistan 210 0.17Unspecified 1,117 0.65TOTAL 78.68 44.99


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Small Red beans dried and shel led

Source ofsupply

Qty imported2006/7 TONS_

ValueUS$ million

Qty importedApr/Dec07tonnes

ValueUS$ million

China 3.740 2.01 - -

Ethiopia 491 0.22 - -Myanmar 7,587 3.59 118 0.07Mozambique - - 373 0.16

TOTAL 5.82 0.23

071331 Beans of the SPP Vigna Mungo , Hepper or Vign a Radiata, Wilczek

dried and sh el led

Source Qty imported2006/7 Tonnes

Value(US$ million)

Qty importedApr/Dec07tonnes

ValueUS$ million

AUSTRALIA 1,222 0.84 - -Brazil - - 95 0.07Canada 26 0.04China 12,130 9.21 240 0.19Ethiopia 1,100 0.80 303 0.21

Indonesia 1.540 1.11 12 0.01Iran 4,635 3.30Kenya 2,319 1.60 5,517 3.86Madagascar 44 0.03Malaysia 286 0.29 161 0.10Myanmar 303,764 212.16 262,767 173.04Mozambique 259 0.24 366 0.16

Pakistan 683 0.47 50 0.04Somalia 130 0.07Sri Lanka 37 0.02Tanzania 496 0.31 6,841 4.31Thailand 1,710 1.27 225 0.18Uganda 44 0.03Uzbekistan 2,147 1.63 340 0.30TOTAL 233.10 182.59


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071339 Other b eans dried and shelled

Country oforigin

Qty imported2006/7(tonnes)

Value(US$ million)

Qty imported2006/7(tonnes)

ValueUS$ million

Afghanistan 99 0.07

AUSTRALIA 975 0.58Brazil 305 0.22 434 0.33China 325 0.19 679 0.58Ethiopia 66 0.04 - -Kenya - - 1,122 0.60Malaysia 141 0.10 71 0.05Madagascar 40 0.02 429 0.29Malawi 72 0.03 2,997 1.28Myanmar 212,925 143.06 81,229 49.76Mozambique 72 0.03 1,095 0.51Pakistan 744 0.41 50 0.03

Peru 588 0.53 111 0.11Singapore 502 0.36 - -Sri Lanka 61 0.02 - -Tanzania 3,509 2.38 17,283 8.43UAE 69 0.08 - -USA 144 0.18 388 0.19

Unspecified - - 610 0.33TOTAL 147.71 63.07

(Source: Director General of Commercial Intelligence & Statistics, Ministry ofCommerce)

An examination of the import data indicates that Canada emerged as the single largestsupplier for dried peas (yellow peas) during 2006/7 with a total shipment of 862,419tonnes worth US$218.52 million, followed by Australia with total shipments of 106,841tonnes worth US$31.8 million. Australia emerged as the single largest supplier of chickpeas during the same period with total shipments of around 75,000 tonnes worth US$43million approximately.

The main sources for various varieties of pulses are

Green/yellow peas Canada, USA, Hungary, NewZealand, France & Germany

Dun peas, AustraliaDesi chick peas Canada, Australia Tanzania,China and Ethiopia

Kabuli chick peas Canada, Australia, USA, Turkey,Iran and Mexico

Lentils Canada, Australia and Turkey


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IMPORT PERMITS

Import Permits are issued by the Indian Directorate of Plant Quarantine, Ministry ofAgriculture, prior to the date of shipment at a nominal fee of Rs.1150/-.The Import Permitalso specifies the additional endorsements regarding fumigation of the cargo andfreedom of the exporting country from specified diseases/pests to be added to the phyto-

sanitary certificate. The Import Permit is generally valid for six months from the date ofissue and can cover any number of shipments from the same supplier up to a specifiedquantity

A phyto sanitary certificate stating that the plants and plant products described in theshipping documents have been inspected according to appropriate procedures and areconsidered to be free from quarantine pests and practically free from injurious pests andthat they are considered to conform to the phyto sanitary regulations of the importingcountry and issued by a competent authority should accompany each shipment. Theadditional endorsement as stated above must be mentioned on the phyto-sanitarycertificates. In the absence of a phyto sanitary certification, the shipment is generally notreleased by the Plant and Quarantine officials at the port of entry in India

INDIAN IMPORT DUTY

Under the Indian customs tariff, pulses imports from all sources including Australia weresubject to a standard import duty of 10%.until June 2006.

However, due to shortage of pulses availability in the domestic market, spiraling pricessince March.2006 following a decline in local production and hoarding by unscrupulouspulses traders in anticipation of a higher price, the Indian Government announced totalcustoms duty exemption for bulk imports by Indian Government trading agencies andimports by private sector wholesalers/processing mills. This announcement was madeon 6 June 2006.

As the Indian Government is keen to make available imported pulses at affordableprices to the common man, the current customs duty exemption is likely to continue.

INDIAN PLANT AND QUARANTINE REGULATIONS

According to the Indian Plant and Quarantine Regulations, all shipments of pulses intoIndia should be accompanied by phyto-sanitary certificates from approved agencies inthe countries of origin.

In addition, fumigation of pulses of all shipments with methyl bromide either prior toshipments or at the ports of unloading by approved Indian agencies is also stipulated.

US and Canadian pulse suppliers generally get fumigation with methyl bromide done atthe Indian ports upon arrival by approved Indian agencies.Representations have been made to the Indian Government against the stipulation onthe use ofmethyl bromide by the US, Canadian New Zealand and Australian mission inNew Delhi and the outcome is awaited. For more details on PQ regulations in Indiaplease refer- www.plantquarantineindia.org
http://www.plantquarantineindia.org/http://www.plantquarantineindia.org/http://www.plantquarantineindia.org/


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INTERNATIONAL QUALITY STANDARDS AND GRADING SYSTEM

As India has not formulated any standards as yet, the traders generally accept fair toaverage FAQ: quality. However the following quality standards are essential and areincorporated in the sales contracts

Presence of foreign matter (%)size of the grainpercentage of damaged, discolored, and weeviled grains as well as other seedsmoisture contentcolour of the grains

In the absence of Indian Quality Standards, standards of the exporting countries arefollowed for imports

Source of imports Appropriate standardsAustralia NACMACanada Canadian Grains CommissionUSA National Dry Beans Council

STRATEGIC DIRECTION FOR WA PULSES SUPPLIERS

Pulses form an important component of the Indian diet. Most Indian consumers are quitesensitive to prices when making food purchase decisions and India is consideredas a highly price- conscious market for pulses. Based on past experience, higher relativeprices cause consumers to switch over to lower priced pulses varieties and grades in theIndian market.

WA Dun Peas in particular face threat from cheap yellow peas from Canada. This islargely due to relatively lower prices and ready availability in the Indian market place.Indian Government bulk buying trading organizations such as the STC, MMTC Limitedand PEC Ltd. arrange for bulk imports of Canadian yellow peas through global tendersfrom time to time to ensure uninterrupted supplies in the market place. Such tendersinvolving wide participation from Canadian suppliers are invited more often than tendersfor bulk imports of Dun Peas.

WA suppliers may be encouraged to widely participate in such global tenders for bulkimports of Dun Peas in the future.

In addition, senior executives from the Indian Government bulk buying organizationsincluding the MMTC Limited, STC Limited and PEC Ltd. undertake regular visits toCanada at least once a year to make on-the-spot assessment of crop prospects prior toissuing global tenders for bulk imports. It may therefore be worthwhile persuading suchbulk buying agencies to consider visiting WA coinciding with the Dun Peas harvestingseason.

Although the tender formalities prescribed by the Indian Government bulk tradingorganizations such as the STC, MMTC Limited and PEC Limited are consideredcumbersome, payments for such shipments against Irrevocable Letters of Credit are


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guaranteed by the Indian Government which holds majority stakes in such tradingorganizations through the Indian Commerce Ministry.

It is strongly suggested to ensure that payments for shipments to private sectorimporters of pulses in India are fully secured by providing for Letter of Credit terms inlieu of extended credit. As the local wholesale prices of pulses fluctuate widely under

volatile market conditions, WA suppliers are advised in their own interest to provide forpayments on a secured basis as a safeguard against likely defaults in a volatile pulsesmarket.

In the absence of any Indian import duty on pulses, WA suppliers are advised to ensurethat, Indian PQ requirements are complied with so as to ensure smooth clearance fromthe Indian Customs and Port Health authorities upon arrival of the shipments at theIndian ports

LOCAL REPRESENTATION FOR MARKET ENTRY

In view of the vast size of the Indian market, coupled with the fact that the potentialpulses importers are scattered in different parts of the country (North, South, East, Westand Central India) it may be advantageous to have the services of a local agent. Theagent should, preferably have a network of offices in the principal pulses trading centersincluding Mumbai, Delhi, Chennai, Pune, Tuticorin (Dun peas) and Kolkata. Inaddition to canvassing the market amongst potential importers, a local agent could assistinterested WA pulse suppliers, who would like to participate in the bulk pulse importsagainst global tenders, issued by the Indian Government trading organizations such asthe State Trading Corporation of India Ltd., MMTC Ltd., PEC Limited and NAFED(National Agricultural Co-operative Marketing Federation Ltd.) WATO will be happy toidentify suitable Indian agents upon request.

As WATO receives global tender notices from the above Indian Government Tradingorganizations for bulk imports of pulses from time to time, interested WA suppliers arewelcome to register their interest with us so that we may put them on our regular mailinglist to receive copies of such tender notices in the future.

PROMOTIONAL EVENT

The Pulses Importers Association of India, with its head quarters in Mumbai organizesNational Pulses Conference on an annual basis during Aug/Sep. This provides a goodopportunity to network with potential Indian importers.There is usually ample participation in this annual get together which provides time-slots

for presentations by technical experts and overseas pulse suppliers. The PulseImporters Association of India is acting as a mouthpiece of the Indian pulse importingcommunity and makes representations to the Indian Government on issues such as PQregulations, import duty changes as well as other issues impacting pulses trade.


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SUMMARY OF RECENT SIGNIFICANT DEVELOPMENTS IN PULSES IMPORTS

The National Agricultural Co-operative Marketing Federation Ltd. (NAFED) an IndianGovernment Agency issued a global tender on 18th June 2008 for 5,000 tonnes each ofpigeon peas, black matpe and green gram and contracts have been concluded forshipments from Myanmar to Mumbai, Chennai and Kolkata.

In addition, NAFED concluded contracts for imports of 25,000 tonnes of black matpe and5,000 tonnes of mung beans for shipment during July/August.

The PEC another Indian Government trading agency issued global tenders for theimport of 81,000 tonnes of pulses, including 41,000 tonnes of black matpe, 15,000tonnes of mung, 15,000 tonnes of peas and 6,000 tonnes of Chana (Chickpeas).

In terms of the recent customs notification, bulk imports through these agencies will betotally exempt from import duty.

CONCLUSION

The consensus of opinion in pulse trade circles is that with prospects of India importingaround three million tonnes of pulses per annum by 2010, to feed the increasingdemand, import prospects appear to be promising ,not only in the short term but also inthe medium to long term. As India is considered a price-conscious market, WA suppliersmay have to face considerable competition from other overseas sources. The non-tariffbarrier in the form of rigorous Indian PQ regulations may be a dampener. Nevertheless,in view of WAs geographical proximity and proven record as a reliable and consistentsupplier of pulses for quite some time, WA suppliers are well-poised to get an increasingshare of the market.

X-X-X-X-X-X-X-X-X-XX-X-X-XX-X-X-X-X

For further information, please contact Western Australia Trade Office- India. Details areas follows:

Western Australia Trade Office India93 Jolly Maker Chambers 2Nariman PointMumbai 400021IndiaTel. No. + 91 22 66303973Fax No. + 91 22 66303977


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ANNEXURES


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ANNEXURE I

MAP OF INDIA


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ANNEXURE II

LIST OF POTENTIAL INDIAN IMPORTERS OF PULSES

Although pulses importers may be hesitant to import lupins at the present time, we givebelow the names of some of the leading Indian manufacturers of pulses based productsso that they may be contacted in connection with the market mapping exercise

(A) Leading Indian Manufacturers

ITC Food Business GroupCox TownBangaloreContact Mr Hemant Malik, GeneralManager

[email protected]

(One of the leading manufacturers with avast network of sales offices all over India)

Satnam Overseas Ltd.New DelhiContact Mr. Bhushan Arora, VicePresident (Marketing)[email protected]

Webwww.satnamoverseas.com

MTR Foods Ltd.BangaloreContact Mr. Nethi, General [email protected]

Sakthi Masala Private Ltd.ErodeTamil Nadu 638 [email protected]
mailto:[email protected]:[email protected]:[email protected]://www.itcportal.com/http://www.itcportal.com/http://www.itcportal.com/mailto:[email protected]:[email protected]:[email protected]://www.satnamoverseas.com/http://www.satnamoverseas.com/http://www.satnamoverseas.com/mailto:[email protected]:[email protected]:[email protected]://www.matrfoods.com/http://www.matrfoods.com/http://www.matrfoods.com/mailto:[email protected]:[email protected]:[email protected]://www.sakthimasala.com/http://www.sakthimasala.com/http://www.sakthimasala.com/http://www.sakthimasala.com/mailto:[email protected]://www.matrfoods.com/mailto:[email protected]://www.satnamoverseas.com/mailto:[email protected]://www.itcportal.com/mailto:[email protected]


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(B) Leading Indian Importers, Processors and brokers

Mr. Suraj ModiGeneral Manager

The MMTC Limited(Indian Government undertaking)Core I -Scope Complex,7 Institutional Area,Lodhi Road,New Delhi. 110 001Tel : 91 11 2436 [email protected]

Mr. S SarkarChief General Manager

The State Trading Corporation of IndiaLtd., (STC)(Indian Govt. undertaking)Jawahar BhawanTolstoy Marg,New Delhi.11 00 01Tel 91 11 [email protected]

www.stc.gov.in

Mr. Ravi Kumar

General ManagerThe PEC Limited,(Indian Govt undertaking)Hansalaya Building,15Barakhamba Road,New Delhi. 11 00 01Tel :91 11 2331 [email protected]

Mr. Alok Ranjan,

Managing DirectorNAFED Limited(Indian Govt undertaking)NAFED HouseSiddharth Enclave,Ring Road,

Ashram ChowkNew Delhi 11 00 14Tel : 91 11 2634 4293Email :[email protected]

Mr. Adarsh GuptaDirectorCanny Overseas Private Ltd.,B32 FF Complex,Jhandewalan Extn.New Delhi 11 00 55Tel 91 11 2361 [email protected]

Mr.Vivek GoyalMr. Ajay GoyalDirectorGoyal International,79 Acharappan StreetChennai.600 001Tel 91 44 2522 [email protected]

Mr. Avinash Ananthanarayanan

DirectorApoorva Agencies53 Third St.,Krishna Nagar,Virugambakkam,Chennai.600 092Tel. 91 44 2377 3156Mobile : +91 98400 [email protected]

Mr. Pankaj KakkarVice President

Alfred C Toepfer India Pvt. Ltd.,B1/B2/B5 Mittal Tower, A WingNariman Point,Mumbai400 021Tel: 91 22 2284 [email protected]
mailto:[email protected]:[email protected]:[email protected]://www.mmtclimitd.com/http://www.mmtclimitd.com/mailto:[email protected]:[email protected]:[email protected]://www.stc.gov.in/http://www.stc.gov.in/mailto:[email protected]:[email protected]:[email protected]://www.peclimited.com/http://www.peclimited.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.peclimited.com/mailto:[email protected]://www.stc.gov.in/mailto:[email protected]://www.mmtclimitd.com/mailto:[email protected]


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Mr. Neeraj DhawanDirectorMegagrains Limited1106 11th FloorVikrant TowerRajendra Place

New Delhi.11 00 08Tel :91 11 2571 [email protected]

Mr. Ajay SinghalDirectorMangat Ram Dal Mills LtdM16 Phase IBadli Industrial EstateDelhi.110 041

Tel: 91 11 [email protected]

Mr. N TiwariManagerSPN Associates,

47/2 Vibras Park View,Plot 47 - 4 StreetKrishnanagarVirugambakkam,Chennai.600 092Mob : 98400 44406E-mail: [email protected]

Mr N KarunakaranDirectorRajaram Agencies,

3 French Chappel Street,Tuticorin 678 001Tel: 91 461 2320202Fax: 01 461 [email protected]

Mr. D R SharmaManager

Shadiram Traders19 South Raja StreetTuticorin 628 001Tel; 91 461 2330151Fax 91 461 2334695

E-mail : [email protected]

Mr Gurdip SinghBGP Internatonal,

C8/8177 Vasant Kunj,New Delhi110 070Tel :91 11 3091 3112Fax : 91 11 2613 2375E-mail :[email protected]

Mr. V D GuptaManagerMarshall Produce Brokers Co. Pvt. Ltd

22/23 Jolly Makers Chambers No.2225 Nariman Point,Mumbai.400 021Tel : 91 22 2201 6602Fax: 91 22 2202 2398E-mail :[email protected]

Mr. Kailash BhartiyaProprietorChandulal Rameshwardas Imports Pvt.

Ltd.,4 Floor Mani Mahal353 Kalbadevi RoadMumbai.400 022Tel/Fax : 91 22 2494 3081E-mail:[email protected]
mailto:[email protected]:[email protected]:[email protected]://www.megagroup.bz/http://www.megagroup.bz/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.megagroup.bz/mailto:[email protected]


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Mr. K BhariyaPresidentThe Pulses Importers Association78/79 Bajaj Bhawan,Nariman Point,

Mumbai.400 021Tel: 91 22 2202 3225Fax:91 22 2202 [email protected]

[email protected]

Mr R MuthupalaniappanProprietorTMB Chandrasekharan & Co.1 Sathy RoadErode 638 004

Tel 91 424 2216225Fax 91 424 [email protected]

Mr. Praveen DongreGlencore Grains India Pvt.Ltd.

Pharma Search House (3 Floor)B G Kher Marg,WorliMumbai -400 018Tel : 91 22 6651 5000Fax: 91 22 6651 5001

Mr. S A KaitiraL D Brokerage Co.

31 New Marine LinesMumbai 400 020Email [email protected]

Mr Deepak JainManaging DirectorNiki Agro Products Pvt.Ltd.V-191 MIDC

Jalgaon 425 [email protected]

Mr. Mehul PatelLaxmi Protein Products Pvt.Ltd.

Approach RoadValsad 388 305

[email protected]

Challen International Pvt.Ltd.(Foods Division)72A, Jacranda MargDLF Phase IIGurgaon, [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.srikannanoilmills.com/http://www.srikannanoilmills.com/http://www.ldexports.com/http://www.ldexports.com/http://www.ldexports.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.laxmi-products.com/http://www.laxmi-products.com/http://www.laxmi-products.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.laxmi-products.com/mailto:[email protected]:[email protected]://www.ldexports.com/http://www.srikannanoilmills.com/mailto:[email protected]:[email protected]:[email protected]


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ANNEXURE III

GLOSSARY OF PULSES VARIETES IN INDIA

Pulse variety Indian name used in thecommodity w holesale/retai l Markets

Tyson Chick PeasBig Size/White

Kabuli Chana

Red Lentils Masoor DalRed Kidney Beans RajmaGreen Gram Moong DalSplit Red Gram Arhar DalBlack Eyed Beans LobhiaGreen Chickpeas Hara ChanaBengal Gram Chana DalSmall Sized Chick Peas Desi Chick peas

Black Matpe Urad DalYellow Peas MattarDun Peas Mattar


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ANNEXURE IV

MMTC PULSES TENDER

Core-I, Scope Complex, 7, Institutional Area,Lodi Road, New Delhi: 110 003.

Tender for Import of Pulses

Tender No: MMTC/PULSES/IMP/2008-09/05 Dated: 26th November, 2008Closing At 1500 Hrs (IST) on 3rd December, 2008

Terms & Conditions of Tender

1. Invitation for Bids:

MMTC Ltd., Core-1, scope complex, Lodhi Road, New Delhi 110 003, India invites bidsfor import of Pulses on FOB/C&FFO basis as per the terms and conditions mentionedhereunder: -

2. Items, Quantity and Shipment Period

S.No. Item Latest

Crop (2008-09)

Country of origin Quantity * Shipment Period

1. Urad SQ Myanmar 4,000 MTs (+/-5%) Dec.08-Jan.09

2. Toor Lemon Myanmar 4,000 MTs (+/-5%) Dec.08-Jan.09

3. Toor Arusha Tanzania 4,000 MTs (+/-5%) Dec.08-Jan.09

6. Red Lenti ls Australia/Canada 4,000 MTs (+/-5%) Dec.08-Jan.09

* Quantity can be increased or decreased at the sole and absolute discretion of thebuyer depending on the prices received in the tender. Item wise bid should be made fora minimum quantity of2,000 MTs each .


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3. Quality Specifications

i. Pigeon Peas (Arhar/Toor) (Lemon)

Foreign Matter 1.0% Max.Weeviled Seeds (Material should be free from liveinfestation)

2.0% Max.

Damaged otherwise (Including immature, shriveled, heatedfungi and Discoloured grain)

4.0% Max.

Sister Beans 3.0% Max.Brown seeds 3.0% Max.Small Seeds (Passing through 3.00 mm slotted sieve) 5.0% Max.Moisture 12.0% Max.

ii. Pigeon Peas (Arhar/Toor) Arusha

GRADING FACTORS SPECIFICATIONS

FOREIGN MATTER 1.0% MAXWEEVILED SEEDS (Material should befree from live infestation)

1.0% MAX

DAMAGED OTHERWISE

(Including immature, shriveled, heatedfungi and discolored grain)

2.0% MAX

SISTER BEANS 0.5% MAXFOREIGN BEANS 0.5% MAXBROKEN/SPLIT 0.5% MAXMOISTURE 12.0% MAX

iii. Urad (Black Matpe) SQ

GRADING FACTORS SPECIFICATIONSFOREIGN MATTER 1.0% MAXWEEVILED SEEDS (Material should befree from live infestation)

0.5% MAX

DAMAGED OTHERWISE

(Including immature, shriveled, heatedfungi and discolored grain)

2.0% MAX

BROWN SEEDS 2.5% MAXSMALL SEEDS (passing through 3.25mm slotted sieve)

6.0% MAX

MOISTURE 8.5% MAX


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iv. Red Lentils (Australia/Canada)

General

Please note that all the pulses quoted shall be from new crop (2008-09 Crop)and shall be sound, clean, wholesome, free from moulds/fungus, live insectsobnoxious smell, artificial colour, admixture of unwholesome substance andshould be of reasonable uniform size, shape and colour characteristics.

All requirements of plant quarantine (regulation of import into India) Order 2003or any amendments thereof to be strictly adhered to failing which theconsignment will stand rejected.

Radioactive contamination, if any, within permissible international limits.

Mycotoxin including Aflatoxin not to exceed 0.03 milligrams per kilogram.

4. Price:

Prices forPigeon Peas (Arhar/Toor) (Lemon ) and Pigeon Peas Arushato be quotedfor supply in US$ PMT net delivered weight and quality on FOB/C&FFO basis forMum bai/Nhava Sheva Port. Price forUrad SQto be quoted for supply in US$ PMT net

delivered weight and quality on FOB/C&FFO basis for Mumbai/Nhava ShevaPort/Chennai Port. Price for Red Lenti lsto be quoted for supply in US$ PMT netdelivered weight and quality on FOB/C&FFO basis for Kolkata Port/Mumbai NhavaSheva Port. The evaluation and finalization of offers received shall be made on thebasis of the lowest landed cost of import of pulses. 14 days free timeto be allowed forcontainerized cargo at discharge port. Prices shall be quoted only as per price bid formatprovided in Annexure I.

5. Packing

Pulses tendered can be offered either in Bulk ,BagsorLoos e in Containers. Pulsesoffered in bags shall be packed in new 50 KGs seaworthy Jute/PP bags of uniformquality and weight capable to withstand 50 KGs net weight and capable of withstandingmultiple handling. 2% empty extra bags to be supplied free of cost, along with the cargo.The mode of Packing should be specifically mentioned in the Bid in the space providedin Annexure I.

6.Country of Origin and Crop Yearshould be specifically mentioned in the Bid in thespace provided in Annexure I.

GRADING FACTORS SPECIFICATIONSPURITY 99.5% MIN.FOREIGN MATTER 0.5% MAX

TOTAL DAMAGED (Including immature,shriveled, heated fungi and discoloredgrain)

3.5% MAX

MOISTURE 14.0% MAX


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7. Validity:

Bid must remain valid upto 1700 hrs. IST on 12thDecember 2008.

8. Bid Bond:

a. Bid shall be accompanied by a Bid Bond valid till 5thJanuary 2009,as per following :

Bank Guarantee (on prescribed form as at Annexure II) in US Dollars equivalent to2%(Two percent) of the C&F value of the bid quantity.

b). Bid Bond(s) of the unsuccessful Bidder(s), including those whose bid(s) are notaccepted due to conditions attached to the bid(s), will be returned after ten (10) days ofaward of the tender (to the successful Bidder(s)).

c). Bid money of successful bidder shall stand forfeited if he fails to provide performanceguarantee as per terms of tender.

9. Payment:

(a). 100% payment by irrevocable non-transferable letter of credit.

(b.) The letter of Credit shall be negotiable against the following documents:

1. Sellers signed Commercial Invoice in three (3) originals with three (3) copies forgoods shipped on the basis of shipped weight showing interalia quantity/description, quality of pulses shipped, price and net Invoice value.

2. Complete set of Original Clean on Board shipping line /carriers Bill of Lading,marked FREIGHT PREPAID (for CNF offer) and 14 Days free Containerdetention allowed at Discharge Port (in case of shipment by containers only)made out to order of opening bank and blank endorsed, notify partyAPPLICANT. Bill of Lading(s) to be signed by Master of the Vessel or by a

named agent for and on behalf of the Master or the Owner of the Vessel.

3. Certificate of Pre-shipment inspection regarding quality, quantity/weight &packing by the inspection agency nominated by the Buyer.

4. Certificate of Crop Year by the inspection agency nominated by the Buyer.

5. Certificate issued by the authorized Govt. Agency that cargo is free from levelsof radiation stipulated.

6. Certificate issued by the Govt. nominated Official Agency in the Country ofOrigin/Surveyor nominated by the Buyer that the cargo is fit for humanconsumption.

7. Certificate of origin issued by Chamber of Commerce in Country of Origin.

8. Original Phyto-sanitary certificate in conformity with accepted internationalconvention and Phyto-sanitary regulation of India. Following additionaldeclarations are required to be incorporated in the Phyto-sanitary certificate thatthe consignment(s) conforms to Plant Quarantine (Regulations of Import intoIndia) Order 2003 with subsequent schedules and amendments.

9. Certificate issued by Buyer in original approving the nomination of vessel (in caseof Break Bulk C&F contracts only).


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10. Official Stowage Examination Certificate, in Original, issued by the PSI statingthat vessel holds were duly examined prior to the commencement of loading andfound fully clean, dry and suitable for loading of the stocks (in case of Break BulkC&F contracts only).

11. Fumigation certificate certifying that the cargo has been fumigated in containers/

holds of the vessel prior to sailing.12. Copy of Fax advising shipment particulars in accordance with Clause 19below.

13. Shipping Company or its Agents certificate stating that the vessel is classified byan approved Classification Society as per Institute Classification Clauses andclassified as Lloyds 100 A1 or its equivalent classification stating that the vesselis not more than 25 years old and is sea worthy. In case vessel is over 20 yearsof age, overage premium is to the account of seller and certified to be seaworthyas well (in case of Break Bulk C&F contracts only).

14. A certificate from the Master of Vessel certifying that the vessel has sailed on thedate of issue of Bill of Lading (in case of Break Bulk C&F contracts only).

(c.) Negotiation of documents under reserve is not acceptable.

(d.) Bank charges outside India, if any, to be borne by the Seller.

(e.) All Bank charges in India connected with opening of L/C, increasing its amount andalso Bank charges connected therewith, will be for the Buyers account. In case theSeller desires any amendment, the expenses shall be for the Sellers account. If L/C isrequired to be confirmed by any bank, such confirmation can also be arranged providedthe bank charges involved are paid by the Seller.

(f.) Documents presented within the validity of L/C shall be acceptable.

(g.) Stale Bill of Lading and Third party Commercial Invoice shall not be acceptable.

(h.) L/C to be valid for negotiation for 15 days after shipment. However originaldocuments should be received by MMTC on or before arrival of Containers/ Ship at theport.

10. LETTER OF CREDIT (DOCUMENTARY CREDIT)

The Buyer shall preferably establish in favour of the Seller an Irrevocable 180 daysUsance Letter of Credit in US Dollars for 100% value of the contracted quantity alongwith value of LIBOR credit through a scheduled bank in India within 7 Banking days orearlier, after receipt of the required Performance Guarantee along with the completeinformation required from the Seller for opening of the L/C. The delay in furnishing the

information will be on Sellers account. All Bank charges outside India to be on Sellersaccount.

11. Deviations:

NoDeviations will be allowed from the tender Terms and Conditions as well as qualityspecifications. Bids with deviations will be summarily rejected. The Bidder has to submita certificate that the Bid is in complete conformity with the Tender Terms and Conditionsas per format on Annexure V.


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12.Submission of Bids:

(a) The offer along with bid money complete in all respects addressed to The GeneralManager (Agro ), MMTC Limit ed, Core-I, Scope Complex, Lod hi Road, New Delhi:

110 003, Ind iashould be dropped in tender box in sealed envelope latest by 1500 hrs .IST on Wednesd ay, 3

rdDecember 2008.

The tender shall be opened at 1530 hrs . IST, on s ame day i.e. 3rdDecember 2008inthe Conference Room at 5th floor of our office premises, at the above address. Biddersor their authorized representatives may attend the opening of the tender, if they wish todo so.

a) Any litigation and/or arbitration between MMTC and the bidders, summons or anyother legal process served on the local agent, shall be admitted and held as validas if served upon the principal/bidder.

b) Each page/document must be signed by the Bidder.

c) The Buyer reserves the exclusive right to increase, decrease or split the quantitytendered.

d) Seller has the option to ship in containers with no extra cost to MMTC with theconsent of buyer.

e) Letter(s) of acceptance will be issued by Fax or E-mail or Registered Post/Courier to the successful bidder(s) and/or his/their Agents(s) in India within thevalidity of offer.

f) Offer(s) incomplete or deficient, received late and/or not accompanied by validBid Bond/EMD may be rejected at the discretion of the Buyer.

g) MMTC reserves the right to reject and / or accept all or any offers including thelowest offer without assigning any reasons.

13. Documents Constituting Purchase ContractThe Invitation of Bids, the terms and conditions of Tender, Offer of the Bidder/Supplierand Letter of Acceptance issued by the Buyer along with any amendment issued prior tosigning of contract shall constitute the Contract between the Buyer and the Seller.

14. Performance Guarantee

a) Successful bidder shall furnish a Performance Guarantee for due and satisfactoryperformance of the Contract, equal to 3% of the value of the contr acted goods, inUS Dollars in the form of Bank Guarantee from a Prime Bank to be furnished in theprescribed format as per Annexure III.

b) The Performance Guarantee shall be furnished within five (5) calendar days of thedate of acceptance of the Bid by the Buyer and shall be valid till 31s tMay, 2009.

c) Satisfactory performance of the Contract includes delivery of the commodity strictlyaccording to the specifications, terms and conditions referred herein, within thestipulated period of shipment and settlement of all claims.

d) Bid bond of the successful bidder shall be forfeited without any notice if thesuccessful bidder fails to furnish the required Performance Guarantee.


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15. Forfeiture Of Performance Guarantee

1. The Buyer reserves the right to forfeit the Performance Guarantee if the Seller

a) Fails to supply the goods within the specified period.b) Commits any breach of Contract or fails to fulfill any term(s) or condition(s) of

the Tender/Contract.

2. The Performance Guarantee will be released to the Seller on successful andsatisfactory execution of the Contract. No claim shall be admissible against the Buyer inrespect of interest on Performance Guarantee regardless of the time of the release.

16. Fumigation

a. The consignment must be treated by appropriate fumigant in containers/ holds of thevessel, prior to sailing strictly in accordance with the instructions as given in Order PlantQuarantine (Regulation of Import into India) Order 2003 wi th schedules and subsequentamendments.

b. Seller must ensure conformity to quality requirements pertaining to poisonous weedseeds, Mycotoxins, Argemone Mexicana and Lathyrus Sativa, Uric Acid, Rodent Hairand excreta etc.

17. Inspection

1. The Buyer will appoint a Pre-Shipment Inspection Agency (PSI) at the load port.The entire cost of Pre-Shipment Inspection Agency shall be borne by the Seller.

2. The Seller shall, on receipt of L/C from the Buyer, offer to the Buyers nominatedPSI, the stocks as per shipment schedule prior to shipment/dispatch and also shallensure PSIs accessibility to the stocks for inspection, sampling, testing etc.

3. The PSI shall draw required number of representative samples jointly with the

Seller and other attending agencies, in accordance with the International TradePractice, prior to loading of cargo tendered by the Seller for shipment/dispatch.

4. The offered stock shall be rejected if it does not meet any of the Specifications orCharacteristics.

5. The PSI shall allow sailing/dispatch after proper airtight sealing of the covers of theholds/hatches of the vessel/containers.

6. PSI shall allow loading of the cargo into ship after due satisfaction that the vessel isfully fit for the loading of cargo, in accordance with the tender terms and conditions.In case of any violation PSI may refuse to accept the vessel.

7. Quantity, quality, weight, packing etc. Certificate to be issued by international

reputed surveyor nominated by buyer at the port of loading at the time of shipment atsellers cost

8. Surveyors to ensure that the consignment conform to Indian Plant Protection andQuarantine Requirements and issue a certificate to that effect in addition to thatcertificate issued by Govt. authorized agency of the country of origin.


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18. Shipment

1. Buyer has the right to amend Sellers shipment date within laycan (in case ofBreak Bulk C&F contracts only).

2. Afloat cargo and cargo under loading shall be accepted only after prior approvalof buyer.

3. Detailed terms and conditions of the shipment are mentioned at Annexure IVA& Annexure IV B.

19. Age Of Vessel

As perAnnexure IV Afor FOB basis & Annexure IV Bfor C&FFO basis.

20. Insurance

The Buyer will insure the goods.The Seller shall, latest within 48 hours of sailing of thevessel inform The General Manager (Agro), MMTC Limited, New Delhi, India by Fax(No. +91 11 24364587/24362196), e-mail address ([email protected]) andtelephone no. (+91 11 24364205) and the Insurance Company nominated by the Buyer,the following details of the shipment/dispatch:

i) Name of the Vesselii) Sailing/departure dateiii) Port of Shipment/port of dispatchiv) Invoiced quantity and value of goods, Bill of Lading(s)v) ETA of vessel at Indian Port

This will be followed by airmail or courier advice accompanied by a copy of each of therelated Invoices and Bills Of lading. Number of the open policy cover supplied to theSeller by the Buyer shall be quoted in the Commercial Invoice.

Vessels shall not be over 30 years of age (In case of containerized cargo). If the vesselsare above 30 years of age, the Overage Insurance Premium due to age and flag of thevessel shall be to the account of the Seller. In case of Break Bulk Cargo on C&FFOBasis, please refer to Clause no. 5 ofAnnexure IV B

21. Post Landing Survey

1. In case of any damage to the cargo or material not meeting contractualspecification during survey, the claim shall be lodged by the Buyer on the Seller.

2. The discharging shall be allowed to commence by Buyers surveyor oncompletion of formalities under intimation to The General Manager (Agro) as peraddress given in Clause 19 above.

3. The cargo on arrival at discharge port is subject to inspection by Indian Phyto-sanitary and Health Authorities. In case of rejection for not meeting the qualityand other statutory regulations, the seller shall be responsible for the costs andconsequence whatsoever, including losses, damages incurred by buyer over andabove the refund of payment from the seller. The seller also has an option toappoint surveyors at the discharge port for joint survey.


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22. Documents

The Seller shall send by fax/email, followed by courier, to General Manager (Agro),MMTC Limited, New Delhi, India as per address given in Clause 19 above, three sets ofnon-negotiable documents prior to the arrival of vessel. The Seller shall also ensure thatthe L/C opening bank in India before arrival of the cargo receives original shipping

documents presented to the negotiating bank. If these documents are not received byBuyers bank before the cargo arrival, the Seller shall instruct the shipper to deliver theconsignment to MMTC against MMTCs own Letter of Indemnity and instruct theShipping Agent accordingly.

23. Force Majeure

Should any of the force majeure circumstances, namely act of god, natural calamity, fire,Government of India Policy, restrictions, any act of God, strikes or lock-outs byworkmen, war, military operations of any nature and blockades preventing theSeller/Buyer from wholly or partially carrying out his contractual obligations, the periodstipulated for the performance of the Contract shall be extended for as long as these

circumstances prevail, provided that, in the event of these circumstances continuing formore than three months, either party shall have the right to refuse to fulfill its contractualobligations without title to indemnification of any losses it may thereby sustain. The partyunable to carry out its contractual obligations shall immediately advise the other party ofthe commencement and the termination of the circumstances preventing theperformance of the contract. A certificate issued by the respective Chamber ofCommerce in the Seller or the Buyer country shall be sufficient proof of the existenceand duration of such circumstances.

24. Liquidated Damages

In the event seller fails to effect delivery as per agreed delivery schedule the buyer is

entitled to a rebate of US$ 1.00 PMT per day subject to a maximum of two weekshereafter buyer will be free to rescind the contract and claim liquidated damages @ US$25 PMT for the undelivered quantity. In addition, Bid Guarantee/ PerformanceGuarantee will be invoked and forfeited.

25. Damages:

If the goods are not delivered within the contracted period of delivery, the seller shall beliable to pay to the Buyer on demand without any question whatsoever, damages onaccount of extra expenditure, loss of revenue or less of industrial production in theBuyers country and loss of other benefits to the buyer. The quantum of such damages

will be determined at the sole discretion of Buyer.

26. Cancellation Of Contract

If the seller fails to deliver the goods with in specified delivery period for reasons otherthan Force Majeure, the Buyer shall be entitled at his option to cancel the contract andrecover the damages besides forfeiture of Performance Guarantee. The Buyer shall notbe liable to any risks and costs, whatsoever, in consequences of such cancellation of thecontract.


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27. Arbitration

Any dispute or difference in respect of any matter relating to or arising out of theContract, if the same is not resolved amicably, will be settled at New Delhi by the

Arbitration in accordance with the Rules of Arbitration of Indian Council of Arbitration,Delhi and the award made in pursuance thereof shall be final and binding on the parties.

Indian laws will apply. The venue of the Arbitration will be New Delhi.

(SURAJ MODI)GENERAL MANAGER (AGRO)

Email: [email protected]


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Annexure I

Tender No: MMTC/PULSES/IMP/2008-09/05

Price Bid (To be completed by foreign supplier)

Name of the Bidder: ________________________________________________

Address:____________________________________________________________________________________________________________________________________________________________________________________________Contact Person: ____________________________________________________Tel No. ________________________ Fax No.____________________________Email address: _____________________________________________________

(i) Name of the Item Pigeon Peas (Arhar/Toor) LemonQuantity Offered (MTs)(Min 2,000 MTs)Origin (Port of Loading)Pricing (In US$ PMT)

Mumbai/Nhava ShevaFOBC&FFO

(i) Name of the Item Pigeon Peas (Arhar/Toor) ArushaQuantity Offered (MTs)(Min 2,000 MTs)

Origin (Port of Loading)

Pricing (In US$ PMT)Mumbai/Nhava Sheva

FOB

C&FFO

(iii) Name of the Item Black Matpe(Urad) SQQuantity Offered (MTs)(Min2,000 MTs)Origin (Port of Loading)Pricing (In US$ PMT)

Chennai Mumbai/Nhava ShevaFOBC&FFO

(i) Name of the Item Red LentilsQuantity Offered (MTs)(Min 2,000 MTs)Origin (Port of Loading)Pricing (In US$ PMT)

Kolkata Mumbai/Nhava Sheva

FOBC&FFO


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Details Of Bid Bond

Bid Bond No._____________________ Dated______________ For (Amount in

US$)________________________.

Name of Bank & Branch:

____________________________________________

We have carefully gone through the terms and conditions of the Tender Documents andhereby agree to abide by the same for the fulfillment of the contract.

Name_____________________________________

Designation ________________________________

Signature of the Bidder_______________________

Seal of Company____________________________


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Annexure II

Bid Bond Proforma

(On a stamp paper of Rs 100/- to be executed by any scheduled Bank through itsBranch Office in New Delhi)

M/s. MMTC LimitedCore-I, Scope Complex.,7,Institutional Area,Lodhi Road, New Delhi-110 003

Dear Sirs,

WHEREAS M/s _________________________________(offeror) hasoffered to supply a quantity of ___________MT of (name of commodity) to MMTCLimited and the offerer is required to submit a Bid Bond of 2% of the full value of thetender as a guarantee for fulfillment of all the terms and conditions of offer, we (Bankwith full address) hereby unconditionally and irrevocably guarantee and undertake to pay

immediately on first demand by MMTC Limited, New Delhi the amount of US$______________, in case the offeror wants to withdraw the offer or fails to execute anyterm of bid or fails to perform any terms of the obligations after the acceptance of thebid, without any contestation, reservation, protest, demur and recourse to said offeror.

Any such demand in writing made by MMTC Limited shall be conclusive and binding onus irrespective of any dispute or difference raised by the offeror. On receiving thedemand from MMTC Limited the payment shall be made immediately failing whichinterest @15% p.a. on monthly rest basis shall be payable by the Bank from the date ofdemand to the date of payment. This Guarantee shall be irrevocable and shall remainvalid till 5thJanuary 2009in New Delhi.

2.Notwithstanding anything mentioned herein before, our liability under thisGuarantee is restricted to US$____________(US

Dollar______________only ) and it will remain in force upto __________in India tillmidnight____unless a claim under the Guarantee is filed against us on or beforemidnight in India till (date), all your rights under the said Guarantee shall be forfeited andwe shall be relieved and discharged from all the liabilities there under. We, Bank furtheragree that the Guarantee hereunder contained shall not be affected by any change inthe terms of the bid originally made by the offeror and any change in the constitution ofsaid offeror MMTC Limited.

FOR BANK

Dated:

Place:


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Annexure III

Performance Guarantee Format

(To be executed by any Schedule Bank in India on Stamp paper of Rs 100/-)

M/s. MMTC Limited

Core-I, Scope Complex.,7,Institutional Area,Lodhi Road, New Delhi-110 003

1. Against Contract No./LOI______________________Dated__________entered intobetween MMTC Limited (hereinafter called the Buyer) andM/s________________________(hereinafter called the Seller) this is toconfirm that at the request of the Seller, we___________Bank unconditionally andirrevocably guarantee to pay to the Buyer immediately on its first demand, the amount ofUS$__________without any protest or demur, contestation or reference to the Seller, ifthe Seller fails to perform all or any of its obligations under the said contract/LOI. Thedecision of the Buyer in writing to the bank that the seller have failed to perform all orany of its obligations under the contract shall not be questioned and be final and

conclusive. The said amount of US$______________will accordinglyforthwith be paid without any conditions or requirement of our proof whatsoever failingwhich interest @ 15% p.a. on monthly rest basis shall be payable by the Bank to Buyerfrom the date of demand to the date of payment.

2.It is fully understood that this guarantee is effective for the period upto 31 st March 2009and that we _____________Bank undertake not to revoke this guarantee during itscurrency without the consent in writing of the Buyer.

3.We, ________________Bank, further agree that the Buyer shall have the fullestliberty, without affecting in any manner or obligations hereunder to vary any of the termsand conditions of the said contract/LOI or extend time of performance by the Seller fromtime to time or to postpone for any time or from time to time any of the powers

exercisable by the Buyer against the said seller and/or forebear to enforce any of theterms & conditions relating to the said contract and we, ________________Bank shallnot be released from our liabilities under this guarantee by reasons of any suchvariations or extension being granted to the said seller or for any forbearance and/orcommission on the part of the buyer, or any indulgence by the buyer to the Seller or byany other matter or thing whatsoever which under the law relating to the sureties would,but for this provision have the effect of so releasing us from our liability under thisperformance guarantee.

4.We _______________________Bank further agree that the guarantee hereincontained shall not be effected by any change in the constitution of the saidSeller/Buyer.

5.The Guarantee will be governed by Indian Laws and will be subject to the jurisdictionof courts in New Delhi, India.

This Guarantee will be valid for invocation in India upto 31st May 2009 (Midnight).

FOR ___________________________BANK

ACCEPTED


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"Annexure IV A

Shipping terms for FOB Contracts (in case of Break Bulk Cargo)

1. The Chief Controller of Chartering, Ministry of Surface Transport, Govt. Of India(TRANSCHART) or buyers nominee will charter suitable vessels on behalf of

Buyer as charterers according to agreed shipment schedule and depending onconditions of port in India.

2. The Buyer shall have the option of +/-10 % shipping tolerance to accommodatethe vessel's requirements and the Seller shall make available such quantity asdemanded by owner/master of the vessel.

3. The Seller shall inform the Buyer immediately on placement of order theshipment schedule facilities/restrictions if any at port of loading including LOA,Beam, Draft etc., to enable Buyer to nominate suitable vessel(s).

4. The Buyer shall nominate the vessel and intimate the Seller by fax/e-mail at least10 days before arrival at the loading Port indicating name, quantity to be loaded,Length, breadth and draft type of vessel and no of hatches/holds, etc.

5. The Seller to provide the stem confirmation/acceptance of nominated vessel

within 24 hours of receipt of details of vessel from Buyers/TRANSCHART.6. The Master of the vessel shall give 7 days approximate notice and 3 days

definite notice of the arrival of the vessel at the loading port to the Seller.7. The Seller shall declare the loading port while confirming/accepting the

nomination of vessels. In case of any change same should not be later than 7(seven) days prior to declared ETA of vessel.

8. Laytime to commence from 1300 hours on same day if NOR is tendered beforenoon (during normal office hours) and from 0800 hours next working day iftendered in the afternoon. NOR is tenderable WIBON, WICCON.

9. In case the seller fails to provide full quantity required for the nominated vessel,the Seller shall be liable for and shall pay to the Buyer equivalent dead freightand resultant demurrage.

10. The Sellers agree to load from one / two safe berths always accessible from thenominated port. In case two berths are used for loading, shifting expensesincluding bunker, tugs hire and crew overtime will be to vessel's account, but timeused will count as lay time. However, vessel will be left in seaworthy stream toshift between berths/ports to Master's satisfaction at Seller's time and account.Cost of more than one shifting will be to Seller's account.

11. The Seller will load, stow and trim the vessel at their cost at the port of loading atthe minimum rate of 1000 MT PWWD (otherwise the bidder to indicate loadingrate at port of loading) of 24 consecutive hours, Saturdays afternoon, Sundaysand holidays excepted unless used and if used actual time used to count unlessthe vessel is already on demurrage. Time shall not count between noon onSaturdays and 0800 hours on Mondays nor between 1700 hours on last working

day preceding a legal holiday and 0800 hours on first working day thereafter.12. In case the Seller fails to load at this rate then the Seller shall be liable for and

shall pay the Buyer demurrage. Demurrage rate as per Charter Party but up to amaximum of US$ 10,000 per day pro rata.

13. Dispatch to be half the demurrage rate and shall be paid by the Buyer to theSeller on WTS.

14. Dispatch/Demurrage will be settled within 60 days upon completion of dischargeand upon receipt of Invoices with supporting documents by either party.


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15. Port charges, quay charges and similar dues on ship for owners account. TheSeller shall pay all dues and duties on the cargo/terminals in the country oforigin/shipment.

16. Overtime at the port of loading shall be to the account of the Seller. Vesselofficers/crews overtime to owners account. Overtime if ordered by the portauthorities, costs to be shared between Sellers and ship owners at the load port.


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Annexure IV B

Terms of Shipment On C&FFO Basis (in case of Break Bulk Cargo)

1. The Seller shall endeavor to ship the Pulses as far as possible in Indian flag

vessels.2. They shall nominate vessels at least 7 days prior to loading, giving all particulars

of the vessel including:

a) Name of the vessel; ex-name(s) if any

b) Classification

c) GRT/NRT/DWT

d) Holds/hatches

e) Type of vessel Flag of vessel

f) Year & month of built/Age of vessel

g) Type, condition and capacity of gear/derricks/cranes

h) LOA

i) Beam

j) Name of Charterer/Deponent owners with full name & style

k) Details of P&I club for owners/ charterers for cargo indemnity cover current andvalidity of planned voyage

l) Hull insurance particulars and validity of cover

m) Particulars of performance of vessels previous two voyages in the immediatepast under same ownership and operation.

3. Loading to commence only after nomination has been accepted by Buyer. Onlyvessels suitable for carrying Pulses in bags shall be nominated. Vessel(s) shouldbe of such length and beam as to permit their easy entry to East Coast & WestCoast of Indian Ports/Docks.

4. Vessels chartered/used should be of highest Class equivalent to Lloyds 100-A1and registered with an approved classification society mentioned in InstituteClassification Clause.

5. Vessels shall not be over 25 years of age. In case vessels are above 20 years ofage, the Overage Insurance Premium due to age and flag of the vessel shall beto the account of the Seller and the underlying Letter of Credit shall stipulate thatthe amount of OAP shall be deducted from the Invoice value. Sellers have theoption of paying the OAP to the buyers within 7 days of receipt of invoice fromBuyer, failing which penal interest at the rate of 20% p.a. shall be chargeable.

6. For the purposes of OAP, the rates fixed by Nationalised Insurance Companiesshall be applicable.

7. Seller shall ensure that vessels fixed have full marine insurance cover for Hulland Machinery and P&I insurance with P&I club in the International Group ofClubs or in case of Chinese flag vessels, with China Ship Owners Mutual


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Insurance Brokers and Protection and Indemnity Club to the effect that on thedate of fixture, the vessel possesses Hull and Machinery insurance and full P&Iinsurance cover liability of the owners and/or the charterers.

8. In any event, the Sellers must obtain a Certificate from the vessel owners andCharterer (if relevant) or their representative that the vessel owners and

Charterers (if relevant) undertake to continue the Hull and Machinery and P&Iinsurance unaltered until completion of the discharge at the final destination portsas per Charter party.

9. Charter Party should provide that the owners of the vessel shall not change theownership and/or the name of the vessel till completion of the voyage anddischarge of the cargo and that the vessel is not intended for break up till thevoyage is completed and cargo discharged.

10. Ships on completion of loading at last port of loading shall sail directly fornominated port(s) in India. Combining/co-loading of Buyers cargo with any othercargo can be done with the prior approval of Buyer only. If co-loading is acceptedby the buyer for shipment of Yellow Peas, the supplier has to provide material onex. Wharf basis without any extra charges to the buyer on nodispatch/demurrage basis.

11. All cargo loaded shall be in cargo holds. Part shipment, transshipment andShipment on deck are prohibited.

12. Shifting time to the (i.e. first shifting) second berth in each port used to count aslaytime.

13. After completion of loading at each port of loading (in case of more than one portof loading) within 24 hours, Sellers shall inform the Buyer by Email/fax, completedetails of cargo loaded, date of commencement and completion of loading, Bill ofLading No. & date and Invoice value. It shall also contain the ETA at the next portof loading or at the discharge port.

14. Arrival draft of the vessel(s) should not exceed permissible limit for berthing atdesignated Indian ports. If arrival draft exceeds permitted draft at the nominatedport as above, the responsibility of arranging lighterage and all lighterageexpenses shall be Sellers/Ships account.

15. Vessel shall give 15 days notice to Buyer at their address given earlier Thereafter7 days; 3 days and 24 hours firm notices should be given.

16. Written Notice of Readiness to discharge/deliver cargo (NOR) can be tendered atthe discharge port only after the vessel has arrived at the port of discharge,completed all port formalities and filed application for berthing and ImportGeneral Manifests, secured prior entry at Customs and is ready in all respects fordischarging cargo, even if final entry has not been obtained. NOR is to be

tendered to the Buyers port office and its nominated agent signed by the Masterand/or owners agent.

17. NOR is to be tendered between 0800 hours and 1700 hours IST on weekdaysexcluding Sundays, Charter Party holidays, and local holidays and between 1000hours and 1200 hours on Saturdays. Lay time at discharge port shall commence24 hours after the notice of readiness has been received in writing by Fax orcable by the receiver.


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18. The cargo shall be discharged at an average rate of 2000 MT at Chennai Port,Mumbai Port and Kolkata port per weather working day of 24 consecutive hours,Sundays and Charter Party holidays excluded even if used, basis 4 or morehatches and pro rata for less number of hatches. Laytime at the discharging portis to count from 13:00 hours if Notice of Readiness (N