Export demand for Indian wheat, corn and spices has shot up after Russia launched a military operation against Ukraine, forcing the international trade of agricultural commodities to shift sourcing to India since supplies from the two nations have come to a grinding halt.
"The prices of wheat at the Kandla port have increased from ₹2,200 per quintal to ₹2,350-2,400 per quintal in the last four days. With the FCI (Food Corporation of India) declaring that its upcoming tender this week will be the last one in March, we think that the prices of wheat and wheat products may increase further in the next fortnight," said Sanjay Puri, former president of the Roller Flour Millers Association of India. "The next crop will be harvested only after Baisakhi (April 13)."
Most of the wheat stock in India is held by the government agency FCI, which is not exporting the commodity. Wheat traders want the FCI to release more wheat into the market, which will help keep domestic prices under control, reduce excess stocks and also meet the export demand. However, the processing industry is worried. "We will be requesting the government to immediately stop export of wheat from the country as the local prices have jumped from ₹21 per kg before the outbreak of the war to ₹24 per kg today (Tuesday). The export demand is so huge that if we do not stop exports, then the prices can increase further and may also lead to shortages in future," said Anjani Agarwal, president, Flour Millers Association.
Apart from wheat, demand for Indian corn has increased as buyers from India's neighbourhood shifted from Ukraine to India.
Read more at: https://economictimes.indiatimes.com/news/economy/agriculture/export-demand-soars-for-indian-wheat-corn-spices-following-ukraine-war/articleshow/89931708.cms