Wheat exports from India are growing against the backdrop of current world prices

Published 2022년 3월 10일

Tridge summary

Indian traders are taking advantage of record high world prices to export half a million tons of wheat, with expectations to sign more contracts due to India's status as the only major global supplier with vast surplus stocks. The country's warehouses are overflowing with wheat after five consecutive record harvests, and economists caution that holding a large unproductive stock strains the public financial sector and depletes the soil. However, the recent combination of high world wheat prices, a record low rupee, and surging demand from Asian buyers has made Indian wheat supplies attractive. Despite higher production costs due to increased government support for producers, strong demand and lower freight rates have made exports more profitable.

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Original content

Overseas shipments have become attractive to Indian exporters, with vast surplus stocks of the crop held in the country's warehouses. In recent days, Indian traders have closed deals for the export of half a million tons of wheat, and dealers are expected to take advantage of record high world prices to sign even more contracts. Thus, supplies from the world's second largest producer of this grain crop will increase significantly, Reuters writes. At the moment, India is the only major global supplier of wheat due to its huge surplus stocks in the country, Reuters adds. Rising world prices and a record depreciation of the Indian rupee against the dollar also make wheat supplies attractive to Indian sellers. Indian warehouses are overflowing with wheat after five consecutive record harvests, driven largely by favorable weather, the introduction of high-yielding varieties and government-mandated price guarantees for growers. The wheat harvest is expected to hit a record again in ...

Source: Specagro