Agribazaar Signs First Online Deal to Export 50,000 Tonnes of Wheat to Turkey

Agribazaar, one of India's leading online commodity trading platforms, announced the first online wheat export deal to ship 50,000 tonnes to Turkey following the outbreak of the Ukraine war on Wednesday. Jordan also decided to purchase 60,000 tonnes of wheat from Swiss Singapore Overseas Enterprises Ltd, which will most likely source the grain from India.

According to Amith Aggarwal, co-founder, and CEO of Agribazaar, this is the first successful inquiry following the Russia-Ukraine conflict. "Otherwise, our portal receives regular inquiries from international buyers, and we currently have a few live conversations," he said.

The wheat, which will be sourced from multiple states, is worth Rs 125 crore and meets all international quality parameters, according to Aggarwal.

In another development, Jordan obtained the lowest bid of $436 per tonne from Swiss Singapore through its Ministry of Industry, Trade, and Supply. It is scheduled to arrive in the second half of June. The Singapore-based firm's quote was lower than that of the global agribusiness cooperative CHS, which quoted $487.13 per tonne, and Canadian firm Vittera, which quoted $500.

According to the International Grains Council, free-on-board wheat prices in the European Union are $425 per tonne and $456 in Argentina. The price of US Soft Winter Red Wheat is $442 and Hard Winter Red Wheat is $506. In contrast, Indian wheat is offered at a competitive price.

Benchmark wheat futures on the Chicago Board of Trade are currently trading near an 11-year high of $11.12 per bushel ($408.59 per tonne).

Rajesh Paharia Jain, a Delhi-based exporter, stated that the wheat consignment for Jordan will be "99.9% sourced from India."

Following a lull last week, there is a sudden rush of wheat export deals this week, particularly after concerns were raised about India's wheat production is lower than initial estimates of a record 111.34 mt and low procurement by the Food Corporation of India (FCI).

Last month, at least 1.5 million tonnes of wheat were exported, and an equal amount is expected to be shipped out this month.

Aggarwal stated that the export deal to Turkey was placed online and facilitated electronically through his firm's platform. "On our platform, buyers and sellers can interact in a secure and transparent environment," he said. All quality parameters have been mutually agreed upon by buyers and sellers, he said, adding that other countries, particularly those from West Asia and Europe, are making inquiries through the Agribazaar portal.

Aggarwal said wheat export demand is high, but he couldn't say how much his company could ship out. "India has sufficient wheat stored for the PDS (public distribution system), so domestic demand will be met," he said.

Exports will also benefit Indian farmers because they will receive a higher price than the minimum support price of $2,015 per quintal.

Indian wheat has been in high demand in the export market, particularly in South, South-East, and West Asia, as supplies from Russia and Ukraine, which accounted for nearly 30% of global exports before the conflict, have been cut.

India's wheat production has been reduced to 105 million tonnes, though the trade fears it will be reduced further. Initially, the Centre planned to export at least 10 million tonnes of wheat this fiscal year, up from a record 7.87 million tonnes last year. It has since been scaled down to 8-10 mt.