India’s wheat exports could quadruple to 8-year high as global prices rally

India’s wheat exports in 2021 could quadruple from a yr back to the best level…

India’s wheat exports in 2021 could quadruple from a yr back to the best level in eight many years as a rally in worldwide selling prices and larger freight costs make Indian wheat worthwhile for Asian potential buyers, two business officials advised Reuters.

Higher exports would assist the world’s second largest producer convey down document inventories and present Asian potential buyers with cheaper provides amid a rally in worldwide selling prices because of to limited provides from major exporters this kind of as Russia and Canada.

India’s wheat exports could increase to 4.2 million tonnes this yr, the best due to the fact 2013, Nitin Gupta, vice president at Olam Agro India, advised Reuters.

“There is fantastic demand from customers for Indian wheat for human consumption and feed goal as properly,” Gupta mentioned.

A Mumbai-based mostly grains seller with a worldwide buying and selling agency, who declined to be named, mentioned exports could reach 4.4 million tonnes.

Surge in exports

In the initial eight months of 2021, India’s exports surged 887% from a yr back to 3.07 million tonnes on fantastic demand from customers from Bangladesh, Sri Lanka, Indonesia, Nepal and the United Arab Emirates, according to info compiled by the trade ministry. The bulk of exports previous yr were being in the remaining four months.

In latest promotions, two cargoes of about 100,000 tonnes of Indian wheat were being bought to flour millers in Indonesia, whilst a person cargo of about 50,000 tonnes was bought by feed makers in the Philippines, a person Singapore-based mostly grains trader mentioned.

“On C&F (value and freight) basis Indian wheat is competitive in the Asian current market,” he mentioned.

Asian potential buyers help you save $10 to $15 on freight when they invest in from India fairly than Russia or Ukraine, mentioned the Mumbai-based mostly seller.

India harvested a document 109.fifty two million tonnes of wheat in 2021 and condition-operate organizations are holding a document fifty one.eight million tonnes, additional than double the needed buffer norm.

A surge in exports has lifted Indian selling prices to $305 for each tonne on a no cost-on-board (FOB) basis, compared to $260 three months back again, mentioned Gupta of Olam.

“Even right after the price increase Indian wheat is cheaper. Until mid-2022 exports would continue on at the present tempo,” he mentioned.