Business
India Inks Deals To Export 500,000 Tonne Wheat As Global Prices Rise Amid Russia-Ukraine Crisis
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India is set to export record 7 million tonne of wheat this year and has signed deals for export of 5 lakh tonnes in recent days amid the rising prices of the grain in international market due to the disruptions caused by the Russia-Ukraine crisis.
Indian traders last week received inquiries from buyers seeking alternatives to Black Sea cargoes as Russian military offensive in Ukraine threatened supplies from the two producers which together account for 30 per cent of global wheat exports, reports Times of India.
It should be noted that India has large wheat inventories as the country produced five consecutive record annual crops.
According to the report, the traders are now keen on any export opportunity as the wheat prices in the international market are surging.
"The surge in global prices has made it easier for Indian suppliers to meet the rising demand for wheat," a dealer at a global trading firm was quoted in the report as saying.
India guarantees producers about $257 a tonne for domestic sales. However, the benchmark European wheat prices rose above 400 Euros, or $435) on Monday (7 March).
"The buyers, who are worried about supply disruptions from Ukraine and Russia, know that only India can be a big, steady supplier of wheat at this point of time, and that's why they have turned to India," the dealer was quoted as saying.
He further informed that India had sealed multiple deals to export about 500,000 tonnes wheat in recent days.
"Most suppliers have signed these deals at around $340 a tonne free on board (FOB) to $350 a tonne," trader Rajesh Paharia Jain at Unicorp Pvt Ltd was quoted in the report as saying.
Earlier, the traders sold wheat at $305 to $310 per tonne free on board.
The report quoted a government official as saying that New Delhi was supportive of wheat exports and will facilitate shipments by private players.
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