Food Secretary Mr. Sudhanshu Pandey, on Saturday, said that India has exported a record breaking 6.6 million tonnes of wheat in the current fiscal year. The surge is a result of maturing period of wheat in major supply countries Russia, and it ongoing geo-political tensions with Ukraine. Since India’s wheat crop will be available by 15th March this year, the global situation present a big opportunity for the Indian exporters. While India is the second largest producer of wheat in the world, Russia and Ukraine together amount to about a quarter of the global wheat supply.
A recent rally in international prices has made wheat shipments more lucrative for traders. Benchmark wheat prices in Chicago have surged by more than 40% this week on fears of supply disruptions due to sanctions on Russia and the war in Ukraine.
Also, the wheat crops in Russia and Ukraine will mature around August this year, which means that the global wheat prices have increased, hovering at INR 24,000 – INR 25,000 per ton.
As the tension between Russia and Ukraine rises without a tentative end date, many countries look for alternative sellers. Indian wheat exports, as a result, can leverage the opportunity. By the end of February, we have already exported 6.6 million tonnes of wheat. Still one month is left, you can expect roughly about 7 million tonne plus exports this year.”Sudhanshu Pandey, Food Secretary
Wheat is India’s main winter crop and new harvest will be available in the markets by 15th March. Additionally, the government has surplus wheat produce stored in silos. Though India has not been able to make a mark in world exports of wheat, despite being the second largest producer, in the last couple of years, this trend seems to be taking an upward path.