Amid global economic crisis, Indian wheat exports hit new highs
India’s wheat exports reached 7.85 million tonnes this fiscal year, a record high and a sharp increase from 2.1 million tonnes in the previous fiscal year, traders said, as Russian intrusion into Ukraine cuts off rival Black Sea supplies.
Recently, a senior government official said that India exported a record 7 million tonnes of wheat in the financial year 2021-22. Soaring world prices have given the world’s second-largest grain producer a valuable opportunity to grab a sizable slice of global market share.
India met its target of exporting 7 million tonnes of wheat on March 21, as announced by the Indian government. Traders say wheat shipments, including cargoes offered to neighboring Bangladesh overland, totaled 7.85 million tonnes in 2021-22, surpassing the 7 million target and showing strong export signals for fiscal year 2022-23, beginning April 1.
Apart from Bangladesh, India exports wheat to Sri Lanka, South Korea, Oman and Qatar among others. Most commodity trades were approved between $225 and $335 a ton, traders said.
“Business has been extremely buoyant and the ports of Mundra and Kandla have been exceptionally busy in handling outbound wheat shipments,” said Rajesh Paharia Jain, a prominent New Delhi-based trader.
As war rages in the Black Sea region, world wheat prices have soared and supplies from Russia and Ukraine, which together account for about 29% of world wheat trade, have fallen dramatically.
India’s new season wheat harvest is underway and current year production is set at a record 111.32 million tonnes – the sixth consecutive surplus – allowing traders to conclude more export agreements.