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India’s wheat export rose by 54%. Is the Russia-Ukraine crisis a reason?

When the Russia-Ukraine conflict broke out in late February, our country continuously had to find new clients for its wheat in global markets. We’re worried about a supply crisis of the hearty grain.

With nearly 18 per cent of worldwide wheat output, Russia is the world’s largest producer and exporter. According to the Observatory of Economic Complexity, along with Ukraine, these two nations supplied nearly a fifth of the world’s wheat demand (OEC).

Due to the geopolitical war, wheat availability in global markets has decreased dramatically, and India has effectively stepped in to fill the hole in the wheat supply chain.

Egypt, which imports wheat from Ukraine and Russia in considerable quantities, has recently authorized India as a wheat supplier. The African country plans to import 1 million tons of wheat from India in April, with a demand of 2,40,000 tons.

In 2020, Egypt would import wheat worth USD 1.8 billion from Russia and USD 610.8 million from Ukraine.

“Farmers of our country are feeding the globe. Our nation has been approved as a supplier of wheat by Egypt. As the whole world searches for trustworthy alternative supplies of food (especially wheat), the Modi government steps in. Our farmers have guaranteed that our granaries are bursting at the seams, and we are ready to feed the whole globe “In a tweet, Goyal said.

Wheat Exports: Wheat and poultry exports may rise - The Economic TimesFollowing Russia’s invasion of Ukraine and the ensuing Western sanctions, several other nations began importing wheat from our nation.

To take advantage of rising wheat prices on the global market, the Indian government aims to expand wheat exports. India is the world’s second-largest wheat producer.

How much is India Exporting?

In April-January 2021-22, India’s wheat exports grew to USD 1.74 billion, up from USD 340.17 million.

According to official figures issued by the Agriculture Ministry, the country’s wheat exports hit an all-time high of Rs 15,428 crore in value terms in 2021-22. This figure is almost four times that of the previous year.

In all, wheat exports increased by 54.50 per cent in 2021-22. According to official sources, wheat exports are expected to climb to 100 lakh tonnes in the current fiscal year (2022-23), up from 70 lakh tonnes in 2021-22.

Meanwhile, in 2021-22, the whole agricultural and associated industry grew by 24.5 per cent.

In 2021-22, wheat exports increased by 54.50 per cent, rice exports grew by 9.24 per cent, coffee exports increased by 41.15 per cent, fruits and vegetable exports increased by 9.91 per cent, and processed food item exports increased by 22 per cent.

Wheat exports were USD 61.84 million in 2019-20, rising to USD 549.67 million in 2020-21.

B'desh upset with Russia's decision to cut wheat export | Deccan HeraldBangladesh has the highest part of India’s wheat exports in 2020-21, accounting for more than 54% in volume and value terms. Yemen, Afghanistan, Qatar, and Indonesia are among the new wheat markets it has entered.

Bangladesh, Nepal, the United Arab Emirates, Sri Lanka, Yemen, Afghanistan, Qatar, Indonesia, Oman, and Malaysia were the top 10 importers of Indian wheat in 2020-21.

Last week, Commerce and Industry Minister Piyush Goyal predicted that wheat exports would exceed 100 lakh tonnes in 2022-23.

India is responsible for less than 1% of global wheat exports. However, its market share has risen from 0.14 per cent in 2016 to 0.54 per cent in 2020. In 2020, India will be the world’s second-biggest wheat producer, accounting for roughly 14.14 per cent of global output.

India produces roughly 107.59 million tonnes of wheat per year, with most of it used domestically.

According to Food Secretary Sudhanshu Pandey, traders have signed contracts to sell 30-35 lakh tons of wheat from April to July, boosted by increased demand for the commodity on the global market.

To export 10 million tonnes.

According to Egypt’s minister of food, trade, and industry, Egypt decided to purchase wheat from India, Piyush Goyal. The commerce ministry has established a task group on wheat exports under the Agricultural and Processed Food Products Exports Development Authority (APEDA).

In the fiscal year 2022-23, India plans to export a record 10 million tonnes of wheat, owing to an increase in demand for grain due to the conflict.

India's wheat exports on steady rise, but makes for less than 1% of global  share - BusinessToday“We plan to sell 3 million tonnes of wheat to Egypt this year,” M Angamuthu, Chairman of APEDA, said. Egypt purchased 6.1 million tonnes of wheat in 2021, with 80 per cent of it coming from Russia and Ukraine, while India was not included among the approved nations.”

India’s export destinations

India predominantly exports wheat to its neighbours. Malaysia, Qatar, Nepal, the United Arab Emirates, Sri Lanka, Afghanistan, Indonesia, Oman, Yemen, and Bangladesh were the top 10 importing nations for Indian wheat in 2020-21.

The APEDA allegedly dispatched teams to the Philippines, Indonesia, Morocco, Thailand, Vietnam, Turkey, Algeria, Tunisia, and Lebanon to investigate the prospect of increasing wheat exports.

APEDA recognizes 220 laboratories throughout India to conduct testing services and enable hassle-free quality certification of exported goods.

Wheat surplus In India

India needs around 25 million tonnes of wheat every year to conduct its social programs. The wheat harvest for the new season is started, and it is predicted to be a record-breaking 111.32 million tonnes.

According to reports last year, the government purchased around 43.34 million tonnes of wheat from local farmers. Furthermore, with the extra grain on hand, the government is attempting to increase exports, with a goal of a 50 per cent increase this fiscal year.

Prospects Of India’s Wheat Exports:

Piyush Goyal | Interim Finance Minister: Piyush Goyal named interim Finance  & Corporate Affairs minister

  • According to Piyush Goyal, minister of trade and industry, Egypt, one of the world’s major wheat consumers, has decided to source the grain from India, increasing India’s wheat export potential.
  • Under the auspices of APEDA, the commerce ministry has established a task group on wheat exports comprising officials from different churches, including commerce, shipping, railroads, and exporters.
  • In 2022-23, India plans to export 3 million tonnes of wheat to Egypt. “This year, we want to sell 3 million tonnes of wheat to Egypt,” M Angamuthu, Chairman of the Agricultural and Processed Food Products Exports Development Authority, stated (APEDA).
  • India plans to export a record 10 million tonnes of wheat in the fiscal year 2022-23, owing to increased demand for the commodity due to the Ukraine conflict.
  • APEDA will dispatch trade delegations to Morocco, Tunisia, Indonesia, the Philippines, Thailand, Vietnam, Turkey, Algeria, and Lebanon to investigate wheat export opportunities.

Edited by Prakriti Arora

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