India is more likely to export 3.5 to 4 million tonnes of wheat to its neighbouring countries of South East Asia and West Asia until March 2021, compared to 0.18 million tonnes in the last year if the Indian Government extends export subsidies, the trade union said.
The current share of the nation with the government and the non-public sector is approximately 56 million tonnes, which must be discharged by the Union Government before the new harvest comes in April.
‘It is assessed that Indian exporters have contracted 5 lakh tonnes of wheat this season with prospects in the Middle East, Sri Lanka, Bangladesh and South East Asian countries.
‘Indian wheat may require an export incentive of 7% to 8% on Free On Board (FOB) values to compete successfully with other major exporting market players. If this assistance is extended quickly, India can export another 2-3 million tonnes over the next 4 to 5 months,’ said ITC Ltd‘s spokesperson, ‘including that the company is helping hundreds of thousands of farmers through its wheat value chain, contributing to the construction of strong Indian producers in addition to exports.
Wheat traders and exporters indicated that, in the previous few months, India had a good opportunity to export because of much less crop production in Ukraine and Russia, increased purchase trends by China and agency corn price within the global market.
Wheat merchant, Raju Khandelwal of Jagdish International Ltd., had said ‘A good number of export enquiries are going to flow in and contract terms are being signed and companies have tried to increase the quality of the wheat stock. The neighbouring country of Bangladesh is one of the major importers where exports are made by rail and a contract of around 5 lakh tonnes has already been concluded. In addition, small containers are being shipped to the UAE, Indonesia, Vietnam and Malaysia, bringing together all exports, totalling 1 million tonnes.’
Mrs. Desai, Head of Research in Rural and Corporate Services at Edelweiss, stated that exports must be aggressive from right here because of the glut-like situation in the Indian market. ‘We have 56 million tonnes of wheat, including 38 million tonnes from the central government and the rest from the market,” she said.
Mrs Desai also mentioned that in the last few years, the country’s exports of wheat were between 0.2 and 0.7 million tonnes, with the government concentrating on domestic availability.
However, the sector has stated that the cost of new farm products coming from different markets has fallen worldwide and that it is anticipating export parity with government support.
The President of the Roller Flour Mills Association, Mr. Sanjay Puri, said that ‘Indian domestic wheat is currently priced at Rs 1,960 per quintal, while the international market price is about Rs 1,750 per quintal. The government should consider lowering the price of the grain stock it holds.’
As Australia is expected to harvest some 29 million tonnes of wheat, markets in South East Asia and West Asia have begun to mask Australia’s demand for January-March 2021, said ITC’s spokesperson.