Several countries are approaching India for wheat imports
Several countries such as Bangladesh, Indonesia, United Arab Emirates, South Korea, Oman and Yemen have approached India to import wheat under bilateral agreements between governments. New Delhi had banned wheat exports on May 13, amid fears of impending shortages in domestic markets.
However, the ban does not apply to two types of shipments – exports undertaken by the Indian government under a bilateral agreement with a few countries to meet their food security needs and shipments under transitional arrangements, where irrevocable letters of credit were issued prior to the ban. .
Sources said the government is actively considering requests from these countries to allow wheat exports. In case of government-to-government grain exports, the National Agricultural Cooperative Marketing Federation of India (Nafed) carries out the exports on behalf of the government. “India will continue to allow export of wheat for those countries which are in serious need, are friends and have the letter of credit,” Union Minister Piyush Goyal told Economic Forum earlier in the week. Davos World.
“While a 7-8% increase in wheat production was expected this year, severe heat waves led to an early harvest and loss of production,” Goyal said. He added that India has never been a traditional player in the international wheat market and wheat exports started only about two years ago. India exported a record 7 million tonnes (MT) of wheat worth $2 billion in FY22, compared to just 2.1 MT worth $0.55 billion. dollars in fiscal year 21.
The export ban came at a time when traders had already received orders for 4.5 MT and were considering further transactions in the short term, in line with the government’s export target of 10 MT. The world wheat market is currently very volatile, due to the shortage caused by the Russian-Ukrainian war.