Due to the high availability of wheat in India and good demand for exports to international markets, shipments are going on continuously. Exports are expected to increase by almost double in the next financial year. On the other hand, the markets have started shrinking despite exports due to the arrival of a new wheat crop in the domestic markets.
Wheat prices in the international markets have increased by $ 75-80 a tonne in the last two months, as there was a severe shortage of wheat in the global markets due to the conflict between Russia and Ukraine. It is worth mentioning that the above two countries contribute about 30 percent of the gross exports in the world. There has been a shortage of goods due to the ongoing war between these two countries. The importers had the alternate option to buy wheat from India.
Earlier, India’s contribution to wheat exports was minimal. Wheat export has reached 85 million metric tonnes during the current financial year. Last year it was barely 15 million metric tonnes. With the increasing export of wheat, the grain export of India is likely to reach 120 million metric tonnes in the year 2022-23 financial year.
The buffer stock of wheat was lying in the godowns of 230 million metric tonnes till the first week of March. Currently, wheat is being exported continuously is between $ 0,36-0,38 per kg. Due to the increasing pressure of wheat, the grain was sold at the port two days ago at $0,33 per kg; today, its price is $0,31 per kg. Old stock of wheat is lying in abundance in godowns. The arrival of new wheat has started increasing rapidly in Madhya Pradesh, UP, Haryana, Rajasthan, Chhattisgarh.
In the mandis there, the loose price has been reduced to $0,25/0,26 per kg. Besides Bangladesh, Sri Lanka, Nepal, Turkey, China, Bosnia, Iran, Sudan, Nigeria, etc., the possibility of export has become vital. Considering the prospect of continued demand from African countries and Middle Eastern countries, India may take a leading place as the wheat exporter.
The arrival of new wheat has increased in surrounding mandis, due to which the price has come down, and there is a possibility of further recession. Here the pressure on Kanpur, Bareilly, Bulandshahr, Aligarh, Etawa, Amarwada, Jindwara, Linga, and Multai Lineambhaghu has increased. Wheat is ready in the Karnal-Panipat line of UP. Despite the export demand, there may be a further fall of $0,013 per kg.
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