Post Date : April 5, 2022
As Russia’s invasion of Ukraine cuts off the rival Black sea supplies, India’s wheat exports reach new highs. In the fiscal year to march, wheat exports hit 7.85 million tonnes, an all-time high and a sharp increase from 2.1 million tonnes in the previous year.
Earlier this month, a top government official said India would export a record 7 million tonnes of wheat in the 2021-22 fiscal year as a rally in global prices allowed the world’s second-biggest producer of the grain to gain market share.
The Indian government, which is yet to issue wheat shipment data for the last 10 days of March said that India achieved its target of exporting 7 million tonnes of wheat on March 21.
Traders said wheat shipments, including cargoes sold to neighboring Bangladesh by land, totaled 7.85 million tonnes in 2021-22, surpassing the target of 7 million and indicating robust exports in the 2022-23 fiscal year that began on April 1.
Traders said, that apart from Bangladesh, India also exported wheat to South Korea, Sri Lanka, Oman, and Qatar, among others. Most export deals were signed at between $225 and $335 a tonne free on board, they informed.
“Business has been very brisk, and both Mundra and Kandla ports have been very busy handling outbound wheat cargoes,” said Rajesh Paharia Jain, a leading New Delhi-based trader.
Ever since the war raged across the Black Sea region, the prices of wheat have surged globally and the supplies from both Russia and Ukraine, which together account for about 29% of global wheat exports, have dropped substantially.
Russia calls its actions in Ukraine a “special military operation” to demilitarise the country. Western countries call it an unprovoked war of aggression.
India’s new season wheat harvest is underway, and this year’s production is pegged at a record 111.32 million tonnes – the sixth straight surplus output – encouraging traders to clinch more export deals.