Wheat markets in India, Indonesia face uncertainty ahead of 2024 elections

Published 2024년 2월 6일

Tridge summary

Upcoming elections in India and Indonesia, both significant players in the global wheat trade, could have substantial impacts on agricultural policies and consequently, global wheat prices. India's wheat reserves are at a seven-year low due to free food grain distribution, potentially leading to increased wheat imports post-elections and a rise in global prices. Meanwhile, Indonesia, one of the world's largest wheat importers, may see new wheat import tariffs depending on the election outcome, causing concerns in the flour milling industry.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Key players in the wheat trade, India and Indonesia are headed to the polls this year, and market sources believe that the role of agricultural policies is increasingly taking center stage, especially amid a backdrop of food security concerns and inflationary pressures. Recent elections in other countries that are also heavily involved in global grain production and trade have demonstrated the rising importance of agriculture in the political sphere. The recent presidential elections in Argentina were one such striking example. Export flows of Argentinian grains, especially wheat, had dropped significantly approaching the elections as farmers reportedly held back on sales in anticipation of the then-candidate Javier Milei’s pledges to remove export taxes on grains. India, a major producer and former exporter has been embroiled in talks of wheat imports for months following an El Nino-battered wheat production and several large drawdowns in wheat reserves in 2023. The country’s ...

Source: UkrAgroConsult