Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Supply Chain

India's Wheat Exports Could Quadruple In 2021

India's wheat exports in 2021 could quadruple from a year ago to the highest level in eight years as a rally in global prices and higher freight costs make Indian wheat lucrative for Asian buyers, two industry officials told Reuters.

Higher exports would help the world's second biggest producer bring down record inventories and provide Asian buyers with cheaper supplies amid a rally in global prices due to limited supplies from major exporters such as Russia and Canada.

India's wheat exports could rise to 4.2 million tonnes this year, the highest since 2013, Nitin Gupta, vice president at Olam Agro India, told Reuters.

"There is good demand for Indian wheat for human consumption and feed purpose as well," Gupta said.

A Mumbai-based grains dealer with a global trading firm, who declined to be named, said exports could reach 4.4 million tonnes.

Wheat Exports

In the first eight months of 2021, India's exports surged 887% from a year ago to 3.07 million tonnes on good demand from Bangladesh, Sri Lanka, Indonesia, Nepal and the United Arab Emirates, according to data compiled by the trade ministry. The bulk of exports last year were in the final four months.

In recent deals, two cargoes of around 100,000 tonnes of Indian wheat were sold to flour millers in Indonesia, while one cargo of about 50,000 tonnes was bought by feed makers in the Philippines, one Singapore-based grains trader said.

"On C&F (cost and freight) basis Indian wheat is competitive in the Asian market," he said.

Asian buyers save $10 to $15 on freight when they buy from India rather than Russia or Ukraine, said the Mumbai-based dealer.

Record Harvest

India harvested a record 109.52 million tonnes of wheat in 2021 and state-run agencies are holding a record 51.8 million tonnes, more than double the required buffer norm.

A surge in exports has lifted Indian prices to $305 per tonne on a free-on-board (FOB) basis, compared to $260 three months back, said Gupta of Olam.

"Even after the price rise Indian wheat is cheaper. Until mid-2022 exports would continue at the current pace," he said.

News by Reuters, edited by ESM. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days