Reuters: India resumes exporting wheat after a 4-year hiatus economy

Reuters quoted trade sources as saying that traders in… India They began exporting wheat for the first time in 4 years, after a bumper crop, rising global prices and increased shipping costs made the price of Indian wheat more competitive for buyers in Asia. And the Middle East.

The sources, whose identity the agency did not disclose, added that ITC Consumer Goods Company began loading 22,000 tons of wheat at the Kandla Port in western India for shipping to the UAE.

India, the world’s second-largest wheat producer, has allowed… China By exporting it after a ban imposed in 2022, it expects an unprecedented increase in the crop this year.

The government extended this ban in 2023 and 2024, after extreme heat led to a decline in the crop and depletion of stocks, causing a record rise in prices and sparking speculation that India may need to import for the first time since 2017.

The impact of the Iran war

The Indian government allowed the export of about 5 million tons of wheat at the beginning of this year after it was reassured of the abundance of the crop, but before the outbreak of the Iran war, Indian suppliers were unable to export their products as a result of the high prices of Indian wheat compared to other producers.

However, the Iran war, the cessation of navigation in the Strait of Hormuz, and the high cost of shipping prompted importers to buy Indian wheat, especially in light of the need to deliver shipments of wheat immediately.

Reuters ruled out a boom in India’s wheat exports given that prices are still relatively high compared to other countries that export it, noting that wheat exporters in Australia and the region Black Sea They sell it for between $290 and $300 per ton, including insurance and shipping costs, making the price of Indian wheat about $20 per ton higher.

She added that buyers who want immediate shipments are requesting Indian wheat, while those who have sufficient stocks prefer to wait to obtain wheat at lower prices from Australia, Argentina and the Black Sea region.