Indian Wheat exports could quadruple due to mass production, making it a lucrative crop for Asian buyers
In a recent development in the agriculture sector, it is highlighted that India’s wheat exports in 2021 could quadruple from a year ago to the highest level in eight years as a rally in global prices and higher freight cost.
This in turn will be making Indian wheat profitable and lucrative for Asian buyers. Since India harvested a record 109.52 million tonnes of wheat in 2021 and state-run firms are storing a record 51.8 million tonnes, it is said to be more than two-fold the required buffer norm.
Punjab being one of the largest wheat producers in the country, their government has issued a directive on the high price of wheat since August last and the various causes that led to it, including exports. It is popularly believed that the sudden rise in the price of wheat is due to exports, large purchases from the Government, and speculation among merchants.
Going further it was identified that earlier the real cause of food shortage in the country owing to the bad harvest of 1920 and 1921 and apprehensions for the future. Ensuring that it is not repeated again, it is been considered that the best remedy is to increase the supply in the country by facilitating the transport of food from places where it is plentiful to places of scarcity.
Nitin Gupta, who is the vice president at Olam Agro India, mentioned that India’s wheat exports could rise to 4.2 million tonnes in 2021, the highest since 2013. There is decent demand for Indian wheat for human consumption and feed purposes as well.
In the latest deals, two cargoes of ~100,000 tonnes of Indian wheat were traded to flour millers in Indonesia, while one cargo of ~50,000 tonnes was purchased by feed makers in the Philippines. It is also noted that on buying wheat from India Asian buyers get to save US$ 10 to US$ 15 on instead from Russia or Ukraine.