India plans to export a record 10 million tonnes (MT) of wheat in 2022-23, as global demand rises as a result of the Russia-Ukraine conflict. "We are working with several other ministries – agriculture, railways, shipping - as well as exporters and state governments to significantly increase our wheat exports in the current fiscal," Commerce and Industry Minister Piyush Goyal said on Sunday.
According to the Directorate General of Foreign Trade (DGF), India exported a record 7 MT of wheat valued at $2.05 billion in 2021-22. In the previous fiscal year, roughly half of all shipments were to Bangladesh.
In 2022-23, India is likely to export wheat worth around $4 billion, as prices are expected to rise in the coming months to around $400 to $430 per tonne (all costs included), particularly in North Africa and South-East Asia countries. Prices are currently in the $370-$380 per tonne range.
Meanwhile, the commerce ministry has formed a wheat export task force comprised of representatives from various ministries, including commerce, shipping, and railways, as well as exporters.
According to officials, given the geopolitical situation, demand from those countries, particularly those in South-East Asia and North Africa, which used to source wheat from Ukraine and Russia, which have a roughly 25% share of the global wheat trade, will be strong in the coming months.
This month, an official delegation will visit Indonesia, the Philippines, Thailand, Vietnam, Turkey, Lebanon, Algeria, Tunisia, Egypt, and Morocco in order to increase wheat exports to these countries.
While the majority of India's wheat exports are currently sourced from Madhya Pradesh due to its proximity to the Kandla and Mundra ports, the commerce ministry is also discussing with the shipping ministry the possibility of beginning wheat exports from Nhava Sheva (Navi Mumbai, Maharashtra) and Kakinada (Andhra Pradesh) ports.
In the last decade, India has been the world's largest rice exporter, with export earnings reaching a record $8.7 billion in 2020-21 and crossing $ 9.6 billion in 2021-22. However, until 2020-21, the country was a minor player in the global wheat trade.
The Food Corporation of India's (FCI) current wheat stocks are roughly three times the buffer norm, and the ongoing rabi procurement will increase the stocks even further. FCI has over 23 MT of wheat stocks, compared to a buffer norm of 7 MT.
Madhya Pradesh recently announced a 3.5 percent reduction in mandi fees and other levies on grain purchases in the state in order to increase wheat exports. The state is the country's second-largest producer of wheat. Shivraj Singh Chouhan, the state chief minister, has called a meeting of wheat exporters for Monday in Bhopal.
