19 May 2022 • 3 min read
Wheat exports slow down due to regulation
UPDATE: India put wheat export under the "prohibited" category post a sudden spike in the price of the commodity.
Exports will be allowed on basis of permission granted to other countries to meet their food security needs and based on the request of their government.Read more on export opportunity from India
Russia and Ukraine have traditionally exported 30% of the world’s wheat. But since the war started on February 22, Ukraine's trade has stopped completely, and Russia’s exports are effectively on pause due to ongoing sanctions. The global shortage is further compounded by droughts, floods, and heatwaves affecting production in other traditional exporting countries like the USA, the European Union, and Canada.
Whilst India has long been ranked as the second largest producer of wheat globally, until February Indian exports only accounted for 1% of global volumes. This leaves the opportunity for India to increase its exports of the Grain and Food. Sudhanshu Pandey, Secretary, Department of Food & Public Distribution, Govt. of India clarified last week that the government has no plans to stop wheat exports. Wheat prices have jumped following this clarification.
New markets are opening. Last month Egypt approved the import of 1 million tons of Indian wheat. In 2020, Egypt imported wheat worth about USD 1.8 billion from Russia and USD 610.8 million from Ukraine, to put this in perspective. This week, Turkey also approved imports of Indian wheat, jumping onto the list of new markets for Indian farmers, including Qatar and Indonesia.
About 60% of the world’s wheat importers are from the countries below. For smart Indian wheat exporters, this should be the focus area to find new business and boost exports.
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