Turkey has placed orders for 50,000 tonnes of wheat imports from India, joining Egypt for the first time. While this will benefit farmers in India, it will also drive up wheat prices, which have already hiked by up to 15% in recent weeks. The unusual heatwave in March in India reduced wheat crop yield, contributing to price increases. Turkey has begun to purchase wheat through private electronic-mandi.
Wheat prices have risen because Indian wheat is in high demand in global markets after Ukraine's exports were halted due to the Russia-Ukraine war. Ukraine produces about one-fifth of the world's high-quality wheat and 7% of all wheat. Because of the Russia-Ukraine conflict, private traders in India purchased a large quantity of wheat from farmers at a price higher than the minimum support price. They're creating an inventory anticipating good export orders from the global markets.
According to ministry sources, Turkey agreed to import wheat from India last week. To facilitate the process, an Agricultural and Processed Food Products Export Development Authority (APEDA) delegation visited the country.
Following this, electronic mandi AgriBazaar received a confirmed order from Turkey for the execution of 50,000 metric tonnes of wheat worth approximately 125 crores.
"Due to a confidentiality clause, we are unable to reveal the buyer's and seller's names. Similar inquiries are currently being received and negotiated on our e-platform from Egypt, Indonesia, and other Middle Eastern countries "Amith Agarwal, CEO of AgriBazaar, stated
Several countries have granted India market access as a result of the government's efforts, said Sudhanshu Pandey, secretary at the Ministry of Consumer Affairs, Food and Public Distribution, at a briefing last week.
Many countries, including Egypt, Israel, Oman, Nigeria, and South Africa, have already approached India about wheat imports.
Indian wheat exports increased to 7.215 MT in 2021-22, up from 2.155 MT in the previous fiscal year. Its growth is expected to accelerate, with 4MT already contracted for the first quarter of FY 23.
However, the production estimate has been reduced from 111.3 million tonnes to 105 million tonnes, with the government expecting to obtain half of its original estimate of 44.4 million tonnes. Temperatures rose sharply and unexpectedly in mid-March, reducing crop yield in the world's second-largest grain producer. India ranks second in rice and wheat production.
