India’s wheat exports in 2021 could quadruple from a year ago to the highest level in eight years.
In the first eight months of 2021, indeed, 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.
Rally in global prices and higher freight costs make Indian wheat lucrative for Asian buyers.
On C&F (cost and freight) basis Indian wheat is competitive in the Asian market as Asian buyers save $10 to $15 on freight when they buy from India rather than Russia or Ukraine.
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.
Thus, India’s wheat exports could rise to 4.2 – 4,4 million tonnes this year, the highest since 2013.
However, 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.
In any case, also after the ricing in price, Indian wheat continue to be the cheaper.
