New Delhi: India has signed a contract for export of around 500,000 tonnes Wheat In recent days, traders said, capitalizing on a sharp jump in international prices and signs of a large increase in overseas sales from the world’s second-largest grain producer.
Traders said last week they had received inquiries from buyers seeking alternatives to Black Sea cargo as Russia’s invasion of Ukraine threatened supplies from the two producers, which together account for 30% of world wheat exports.
After five consecutive record annual crops, India has huge reserves of wheat, and traders are keen to capitalize on any export opportunity. The high domestic value guaranteed by the government prevents exports until world prices are high.
“The jump in global prices has made it easier for Indian suppliers to meet the rising demand for wheat,” said a dealer at a global trading firm.
The country guarantees producers about $257 a tonne for domestic sales, while benchmark European wheat jumped above 400 euros ($435) on Monday and benchmark wheat prices in Chicago hit their highest level in 14 years.
India is set to export a record 7 million tonnes of wheat this year.
The dealer said, “Buyers, who are concerned about supply disruptions from Ukraine and Russia, are aware that only India can be a large, stable supplier of wheat at this point in time, and have therefore turned to India. ”
He said India has signed deals for export of about 500,000 tonnes of wheat in the recent past. Two other traders also confirmed this figure on the condition of anonymity.
“Most of the suppliers have signed the deal at $340 a tonne free on board (FOB) to $350 a tonne,” said Rajesh Pahadia Jain, trader, Unicorp Pvt Ltd.
Traders had earlier sold wheat at $305 to $310 per tonne FOB.
An Indian government official said on condition of anonymity that New Delhi “supports wheat exports and will facilitate shipments by private players”.
Traders said last week they had received inquiries from buyers seeking alternatives to Black Sea cargo as Russia’s invasion of Ukraine threatened supplies from the two producers, which together account for 30% of world wheat exports.
After five consecutive record annual crops, India has huge reserves of wheat, and traders are keen to capitalize on any export opportunity. The high domestic value guaranteed by the government prevents exports until world prices are high.
“The jump in global prices has made it easier for Indian suppliers to meet the rising demand for wheat,” said a dealer at a global trading firm.
The country guarantees producers about $257 a tonne for domestic sales, while benchmark European wheat jumped above 400 euros ($435) on Monday and benchmark wheat prices in Chicago hit their highest level in 14 years.
India is set to export a record 7 million tonnes of wheat this year.
The dealer said, “Buyers, who are concerned about supply disruptions from Ukraine and Russia, are aware that only India can be a large, stable supplier of wheat at this point in time, and have therefore turned to India. ”
He said India has signed deals for export of about 500,000 tonnes of wheat in the recent past. Two other traders also confirmed this figure on the condition of anonymity.
“Most of the suppliers have signed the deal at $340 a tonne free on board (FOB) to $350 a tonne,” said Rajesh Pahadia Jain, trader, Unicorp Pvt Ltd.
Traders had earlier sold wheat at $305 to $310 per tonne FOB.
An Indian government official said on condition of anonymity that New Delhi “supports wheat exports and will facilitate shipments by private players”.