Wheat prices have risen due to global demand for Indian wheat after exports from Ukraine were cut off due to the Russia-Ukraine war. Ukraine produces about one-fifth of the world’s high-grade wheat and 7% of all wheat. A large quantity of wheat bought by private traders in India from farmers exceeds the minimum support price due to rising international prices due to the Russia-Ukraine war. They are making a list expecting good export orders from the world market.
In India, wheat crop yields declined in March due to abnormal heat waves, which also contributed to rising prices.
Turkey has started buying wheat through private electronic market.
According to ministry sources, Turkey last week agreed to import wheat from India. A delegation from the Agricultural and Processed Food Products Export Development Authority (APEDA) visited the country to facilitate the process.
Subsequently, Electronic Mandi Agribazar received a confirmed order from Turkey to execute 50,000 metric tons of wheat valued at approximately ₹ 125 million.
“Due to privacy concerns, we cannot disclose the names of buyers and sellers. Similar searches are currently available from Egypt, Indonesia and other Middle Eastern countries, and are being discussed on our e-platform,” said Agmitbazar CEO Amethy Agarwal.
Due to the government’s efforts, a number of countries have given India access to the market, said Sudhanshu Pandey, secretary in the Ministry of Consumer Affairs, Food and Public Distribution, in a briefing last week.
Many countries, including Egypt, Israel, Oman, Nigeria and South Africa, have already approached India for wheat imports.
In 2021-22, Indian wheat exports increased from 2.155 metric tons in the last financial year to 7.215 metric tons. This is expected to be higher for the first quarter of FY 23, with 4MT already shrinking.
However, the production estimate has been reduced from 111.3 million tonnes to 105 million tonnes and the government expects to collect half of its original estimate of 44.4 million tonnes. A sharp and sudden rise in temperature in mid-March has reduced crop yields in the world’s second-largest grain-producing country.
India is the second largest producer of paddy and wheat.