India sees increased demand for its wheat with the current Russia-Ukraine war situation
7 million tonnes wheat export expected from India
16 March 2022, Indore: With the ongoing Russia-Ukraine war, the demand for wheat has increased in the global market. India has so far exported 6.6 million tonnes of wheat. Union Food Secretary Sudhanshu Pandey said that there will be a record production of wheat in the current Rabi season which will come in the market in April. It is estimated that more than 7 million tonnes of wheat can be exported in the current season.
Wheat is running at Rs 25 per kg internationally, due to which the demand for Indian wheat is increasing. Farmers can get better price from the open market in the upcoming procurement season. Today the minimum price of wheat in Indore Mandi was Rs 1,500 and maximum price was Rs 2,542/quintal. Farmers are getting higher price of wheat than the support price in the open market. From March 25th, the procurement of wheat at the procurement centers will start on the support price.
If the prices of wheat in the open market continue to rise, the farmers who have registered for the sale of wheat on the support price will be interested in selling their wheat produce in the open market because of the huge price difference. This year the support price of wheat has been fixed at Rs 2,015 per quintal.
According to the Union Food Secretary, due to the current crisis in Russia and Ukraine, the price of wheat has increased after the fear of supply impact and it has reached the level of 24 thousand to 25 thousand tonne. Till the end of February, 6.6 million tonnes of wheat has been exported, which is a record. Exports are expected to be up to 7 million tonnes in this financial year. India’s wheat production may hit a record 111 million tonnes in the 2021-22 crop year. Last year, 109 million tonnes of wheat was produced in the country.
Mr. Pandey informed that under the World Food Program (WFP), India has supplied 50,000 tonnes of wheat to Afghanistan as humanitarian aid. The Open Market Sales Scheme (OMSS) of the Ministry of Food has been amended again. In view of the convenience of the people during Corona, the government had decided to bear the transportation expenses itself. But now after the improvement in the conditions, it has been restored again, that is, the cost of transporting wheat from the godown of Food Corporation of India to the destination will have to be borne by the business establishment.
