January 25, 2012

Indian wheat export seen impossible

Wheat export from India is not possible in the current international market scenario due to cheaper availability worldwide.

Russia, Australia, Ukraine offer wheat at least US$20-$30 per tonne cheaper than India and will continue to dominate world wheat markets with exportable surplus and timely delivery. In a latest deal Bangladesh has signed a contract to import 60,000 tonnes of wheat from Ukraine at US$280 a tonne, including CIF liner out. The price is sharply lower than its first inter-governmental agreement with Kiev in September, in which it purchased 100,000 tonnes of wheat at US$320 a tonne.

India is not in position to offer below US$285-$290 per tonne from any sources with increased wheat prices in domestic market.