Several international locations equivalent to Bangladesh, Indonesia, the UAE, South Korea, Oman and Yemen have approached India for wheat imports below bilateral preparations between governments. New Delhi had put a ban on wheat exports on May 13, amid fears of a looming scarcity within the home markets.
However, the ban just isn’t relevant for 2 sorts of shipments — exports dedicated by the Indian authorities below bilateral understanding with just a few international locations to satisfy their meals safety wants and shipments below transitional preparations, the place irrevocable letters of credit score have been issued previous to the ban.
Sources stated the federal government is actively contemplating requests from these international locations to permit wheat exports. In case of government-to-government grain exports, the National Agricultural Cooperative Marketing Federation of India (Nafed) carries out the exports on behalf of the federal government. “India will continue to allow wheat export for countries which are in serious need, are friendly and have the letter of credit”, Union minister Piyush Goyal stated earlier within the week on the World Economic Forum in Davos.
“While 7-8% rise in wheat production was expected this year, severe heat waves led to early harvest and loss of production,” Goyal stated. He had added that India was by no means a standard participant within the worldwide wheat market and wheat exports solely started about two years in the past. India exported a document 7 million tonne (MT) of wheat value $2 billion in FY22, in opposition to simply 2.1 MT value $0.55 billion in FY21.
The export ban has come at a time when merchants had already acquired orders for 4.5 MT and have been taking a look at extra offers within the brief time period, consistent with the federal government’s export goal of 10 MT. The world wheat market could be very unstable at current, owing to the scarcity attributable to the Russia-Ukraine struggle.