HIGHLIGHTS:
- India is set to export roughly 7 million tonnes of wheat this fiscal year
- The price of benchmark wheat in Chicago increased by more than 40% this week
- India has already dispatched 4,000 tonnes of wheat to Afghanistan
India is expected to export roughly 7 million tonnes of wheat this fiscal year. This would be one of India’s largest wheat shipments.
Wheat exports from India
With 13.53 percent of worldwide wheat production, India is the world’s second largest producer. However, it accounts for barely 1% of worldwide wheat exports.
India produces roughly 108 million tonnes of wheat each year. However, the vast majority of the output is consumed in domestic consumption.
In the fiscal year 2012-13, India exported a total of 6.5 million tonnes, a new high. India had already exported 6.6 million tonnes of wheat by the end of February 2022.
Wheat prices have risen dramatically
The price of benchmark wheat in Chicago increased by more than 40% this week. This is due to concerns about supply delays as a result of western nations’ sanctions against Russia for invading Ukraine.
Russia and Ukraine account for about a quarter of worldwide wheat exports, and due to the Russia-Ukraine conflict, supply from both countries came to a halt.
The global wheat supply interruption gives an opportunity for India to enhance its wheat exports. Wheat exporters are also benefiting from the rise in wheat prices. Wheat exports from India will benefit from a stronger dollar versus the rupee.
Afghanistan wheat exports
Since the Taliban took control of Afghanistan in August 2021, the country has been in a humanitarian crisis. India has committed to transfer roughly 50,000 tonnes of wheat to Afghanistan in order to combat the food crisis. India has already dispatched 4,000 tonnes of wheat to Afghanistan via Pakistan’s land route.
