The first time, Turkey ordered 50,000 tonnes of wheat from India, and prices up by 15%.
Turkey has ordered 50,000 tonnes of wheat for the first time from both India and Egypt. Even though this is good for farmers in India, wheat prices will go up even more. In the last few weeks, they have already gone up by up to 15%.
Wheat prices went up because Indian wheat is in high demand on the world market now that Ukraine’s exports have stopped because of the war between Russia and Ukraine. About 20% of the world’s high-quality wheat and 7% of all wheat come from Ukraine.
Due to the war between Russia and Ukraine, prices around the world went up, which caused private traders in India to pay more than the minimum support price for a lot of wheat they bought from farmers. They are making an inventory in case there are good export orders from markets around the world.
India had an unusually hot month in March, which caused the yield of wheat crops to drop. This also made prices go up. Turkey has started using private electronic mandi to buy wheat.
Last week, sources in the ministry said that Turkey agreed to buy Indian wheat. A group from the Agricultural and Processed Food Products Export Development Authority (APEDA) went to the country to help with the process.
After this, the electronic mandi AgriBazaar got a confirmed order for about ₹125 crore worth of wheat from Turkey, which is about 50,000 metric tonnes.
‘Due to a confidentiality clause, we can’t tell you who the buyer and seller are. Similar requests are coming in from Egypt, Indonesia, and other countries in the Middle East, and they are being worked out on our e-platform ‘Amith Agarwal, the CEO of AgriBazaar, said this.
Sudhanshu Pandey, secretary at the Ministry of Consumer Affairs, Food and Public Distribution, said last week at a briefing that several countries have given India access to their markets because of what the government has done.
Egypt, Israel, Oman, Nigeria, and South Africa are just some of the countries that have already asked India to sell them wheat.
In 2021-22, India exported 7.215 MT of wheat, up from 2.155 MT in the previous fiscal year. It is expected to grow more, and 4MT has already been contracted for the first quarter of FY 23.
But the production estimate has been cut from 111.3 million tonnes to 105 million tonnes, and the government now thinks it will only be able to get 44.4 million tonnes, which is half of what it thought it would get before.
Mid-March saw a sharp and sudden rise in temperature, which hurt the crop yield in the second-largest producer of grain in the world. India is the second-largest rice and wheat producer in the world.