India To Export Wheat To New Markets (In English)

Table of Contents

The News

Russia’s invasion of Ukraine and the subsequent western sanctions on Russia have affected wheat exports from the Black Sea region and impacted food security in several countries, especially in Africa and West Asia.
The disruption to global wheat supplies in turn has thrown open opportunities that India’s grain exporters are eyeing, especially given the domestic surplus we have.

Globally, Russia is the market leader for wheat exports (almost 15% share) and Ukraine is also a major producer. Exports from these two countries have been hit by the war and sanctions.

India expects to produce 112 mT of wheat in the current season. India needs 24-26 mT tonnes a year for its food security programmes.
So this year we have surplus wheat production which opens up opportunities for exports.
Wheat exports in the FY 2021-22 were estimated at 7.85 mT. Now, More countries are turning to India because of the competitive price, acceptable quality, availability of surplus wheat and geopolitical reasons.
While the existing importers are buying more, new markets have emerged for Indian wheat. Exports this fiscal are expected to be almost 10 mT worth $3 billion.

We have so much surplus but still just 10mT exports. ??
1. India needs buffer stock. The central pool should have 41.1 mT of rice and wheat on July 1 and 30.7 mT on October 1 every year.
2. Sanitary and phytosanitary restriction
3. Pest Risk analysis
4. Logistical issues

India has sent out dossiers to over 20 countries and talks are on at different levels with all these countries. The aim is to reach early resolution on the Pest Risk Analysis by each of these countries so that exports can take off soon.
The Agricultural and Processed Food Products Export Development Authority (APEDA) and Ministry of Agriculture are sending delegations to Morocco, Tunisia, Indonesia, Philippines, Thailand, Vietnam, Turkey, Algeria, and Lebanon to explore possibilities of harnessing wheat exports.
The Commerce Ministry has put in place an internal mechanism to facilitate it and get the paperwork ready for the related sanitary and phytosanitary applications to help facilitate shipments.
Indian authorities are working closely with many countries to negotiate for easing “unreasonable” standards.

India has won the confidence of markets such as Sri Lanka and Bangladesh. Egypt and Jordan, countries in East Africa are likely to source the foodgrain from India now.
Yes for Exports..!!
1. Some experts believe that although this is an opportunity in crisis but India needs to develop a long term wheat export goal. India needs to establish itself in the new markets and the government should facilitate it.
2. Also, today we are exporting, tomorrow we should work for exporting all cereals including millets and super foods.