India acts to seize gap in wheat export market left by Ukraine war
- In Reports
- 06:24 PM, Mar 16, 2022
- Myind Staff
India is rolling out measures to help the country become a major exporter of high-quality wheat as importers are looking for supplies after Russia's invasion of Ukraine, two government sources said.
Indian government has decided to take several steps for this goal. The first step is ensuring government-approved laboratories test the quality of wheat for export, then making extra rail wagons available for transport and working with port authorities to give priority to wheat exports will be next step, the sources said.
India is the world's second biggest wheat producer after China. It has been pursuing deals to export wheat and take advantage of surplus stocks at home and a sharp rise in global prices. India is looking forward to seize the opportunity when Russia’s invasion on Ukraine has disrupted the supply chain and created a vacuum in global market, which can be filled by countries like India.
Despite surplus wheat stocks in the country, logistical bottlenecks and quality concerns have previously spoiled India's efforts to sell large volumes on the world market. Exports picked up last year to reach 6.12 million tonnes of wheat from 1.12 million tonnes a year earlier.
The government sources told Reuters the new measures could increase the export and result in the export of 10 million tonnes of wheat after the new season harvest begins this month. They said the new measures includes extensive consultations with ministries, state governments, port and railway authorities, export promotion bodies and big export houses.
Prime Minister Narendra Modi's administration is keen to help farmers and traders export higher-quality grain to show global buyers that India can provide a steady supply of high-protein wheat, the sources said, asking not to be named as they are not authorised to talk to the media. The government has recruited 213 government-approved laboratories to test the quality of wheat for export and has asked the state-run Bureau of Indian Standards to monitor quality, the sources said.
They said extra warehousing capacity was being created near ports to ensure faster turnaround times for railway wagons that transport grain from major wheat-producing states.
India exports wheat primarily through two ports on the west coast but would soon be able to use other ports, especially in the east to handle wheat cargoes, the sources said.
Apart from raising farmers' incomes, higher exports from India would also reduce the amount the of government expenditure on domestic wheat, which it buys to support local farmers.
Image source: Reuters
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