On June 22, PEC had placed orders for the cargo on G Premjee Trading Pte Ltd, Singapore, for maize of Chinese origin at $117 per tonne. The 27,000 tonne of maize that is expected to touch the coast on August 10, however, might not be enough for starch producers all over the country and the PEC would have to place fresh orders.

A number of manufacturers from southern India have approached PEC with their individual demands together amounting to about 12,000 tonne. PEC is awaiting a few more orders, so that a consolidated cargo size of around 25,000 tonne could be imported for south India. The PEC hasrecently asked Indian Maize Development Association (IMDA) to apprise the south-based members of its plans.

After holding discussions with the All India Starch Manufacturer's Association (AISMA) and various parties from the starch industry, PEC has outlined procedures for carrying out imports on actual user basis. According to PEC guidelines, starch producers will have to deposit 20 per cent of CIF value through a bank draft. The indicative CIF value is $120 per tonne. Bids will be invited by PEC from reputed international sellers on FOB/CIF terms in lot size of 25,000 tonne.

Business would be concluded with sellers who will fully comply with the terms and conditions of the bid. The AEPC would be consulted by PEC, if required and the corporation would levy a 2 per cent service charge on net CIF value. These will be enhanced to 3 per cent, if the starch producers in the country require a stock and sale arrangement.

The producers will have to bear all bank charges, interest charges, foreign exchange riskcover, CHA charges, surveyor fees, warehousing charges and other incidental charges.

In case of FOB contract, starch producers will be required to foot the freight amount payable plus 20 per cent advance payment to PEC.

According to SL Chopra, secretary, IMDA, the government's move to allow import of maize for the starch industry was a pleasing move. "Although starch manufacturers do not require a large quantity of maize, the acute shortage of maize in the country had affected them too. But now, since PEC is importing maize for the industry, we are hopeful that the problem will be solved," he said.