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India signs deals to export 5.5 lakh tonnes of wheat as Asian nations look for supplies -Subramani Ra Mancombu

-The Hindu Business Line

Shipments may top 30 lt by June; consignments will include new crop

Indian wheat exporters have signed deals to export at least 5.5 lakh tonnes (lt) over the next couple of months as nations in South Asia, South-East Asia and West Asia are looking to New Delhi to meet their requirements for food and feed in view of the Ukraine-Russia crisis. 

“We have demand for Indian wheat from March-April. Our exporters have committed to ship 5.5 lakh tonnes. Both old and the new crop will be shipped out by exporters under these deals,” said Rajnikant Rai, Divisional Chief Executive, ITC Agri-Business.

Indian wheat is currently being quoted at $330 a tonne, up from $300 before Russia ordered its troops into Ukraine on February 24. 

Market volatile

“Russia and Ukraine make up 35-40 per cent of global wheat exports,” the ITC official said. 

According to FAOSTAT, Russia exported 37.26 million tonnes (mt) and Ukraine 18.06 mt of wheat of the total exports of 202.48 mt in 2020 by various countries, including India. 

“The wheat market is volatile with buyers and sellers in a wait and watch mode. But prices have increased by $15-20 a tonne after the Ukraine crisis deepened. India’s advantage is that no other origin has its new crop coming during this time of the year,” said Nitin Gupta, Vice-President, Olam Agro India Ltd.

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