The developments are likely to put India in a tight spot over high prices (even if it resorts to phased imports), given its plans to import 5 million tonne this year to keep high domestic prices in check. The tender for the first consignment of 20 lakh tonne is expected this month-end.
The government needs an estimated 1.5 million tonne to cover its food security needs for the year and any imports over and above that are expected to work as a buffer in the event of failed or poor monsoon. At current prices, including freight charges, India could end up paying $290-300 per tonne, compared to a weighted average of $205-odd per tonne last year for 5.5 million tonne of imports.
From The Economic Times