Agribazaar made the first online deal to ship 50,000 tonnes of wheat to Turkey
Agribazaar, one of the best places to buy and sell commodities online in India, made the first online deal to ship 50,000 tonnes of wheat to Turkey on Wednesday. This was the first online wheat export deal since the Ukraine war began. Jordan also decided to buy 60,000 tonnes of wheat from Swiss Singapore Overseas Enterprises Ltd. The grain will probably come from India.
Amith Aggarwal, co-founder, and CEO of Agribazaar, told that this is the first inquiry that has been successfully closed since the conflict between Russia and Ukraine. ‘Otherwise, our portal gets a lot of questions from international buyers, and we’re having a few live conversations right now,’ he said.
The Swiss Singapore offer
Aggarwal said that the wheat will come from many different states, has a value of ₹125 crore, and meets all international quality standards.
In another development, Swiss Singapore’s bid of $436 per tonne was accepted by Jordan’s Ministry of Industry, Trade, and Supply. The second half of June is when it will be sent. The price offered by the Singapore-based company was less than the price offered by the global agribusiness cooperative CHS, which was $487.13 per tonne, and the price offered by the Canadian company Vittera, which was $500.
The International Grains Council says that the price of free-on-board wheat from the European Union is $425 per tonne and that wheat from Argentina costs $456 per tonne. The price for US Soft Winter Red Wheat is $442, while the price for US Hard Winter Red Wheat is $506. On the other hand, Indian wheat is sold at a fair price.
The price of wheat futures on the Chicago Board of Trade is close to an 11-year high at $11.12 per bushel ($408.59 per tonne).
A flurry of deals
Rajesh Paharia Jain, an exporter based in Delhi, said that 99.9% of the wheat for Jordan will come from India.
After a slow week last week, there is a sudden rush of wheat export deals this week. This is because of worries that India’s wheat production is lower than the initial estimates of a record 111.34 mt and that the Food Corporation of India is not buying enough wheat (FCI).
Last month, at least 1.5 mt of wheat was shipped out, and the same amount is likely to leave this month.
Aggarwal said that the order to export to Turkey was made online and processed electronically on his company’s platform. ‘Buyers and sellers can talk to each other on our platform in a safe and clear way,’ he said. All quality parameters have been agreed upon by both buyers and sellers, he said, adding that other countries, especially in West Asia and Europe, are asking questions on the Agribazaar portal.
Plenty of wheat for public distribution
Aggarwal said that there is a high demand for wheat exports, but he couldn’t say how much his company could ship out. ‘India has enough wheat stored for PDS (public distribution system), so domestic demand will be met,’ he said.
Indian farmers will get more money from exports because the price they get is higher than the minimum support price of ₹2,015 per quintal.
Indian wheat has been in high demand on the export market, especially in South, South-East, and West Asia, as well as North Africa. This is because Russia and Ukraine have cut off their exports, which made up nearly 30% of the world’s exports before the conflict.
India’s wheat production has been lowered to 105 mt, but the trade is worried that it could go down even more. At first, the Centre wanted to export at least 10 mt of wheat this fiscal year, which would be more than last year’s record of 7.87 mt. Since then, it has been cut down to 8–10 mt.