February 22, 2013

India to see 23% rise in wheat exports during 2013

India's wheat exports are expected to rise by 23% to eight million tonnes in the marketing year starting April due to strong world prices and surplus local supply.

The country had shipped 6.5 million tonnes of wheat last year, with maximum stock exported from government godowns. Ban on wheat exports was lifted in September 2011, but shipments took off strongly only after August 2012.

Of this, five million tonnes of wheat will be from the government, while three million tonnes will be sourced from open market by private traders.

According to the USDA, exports of government-held stocks are likely to continue unabated this year due to tight storage facilities, while the government will be under tremendous pressure to clear stock to accommodate the new crop.

However, any significant weakening of global wheat prices may adversely affect export prospects, USDA cautioned.

Despite the government's efforts to offload wheat in the domestic and export markets, government-held wheat stocks on February 1, 2013, were estimated at 30.8 million tonnes, compared to 23.4 million tonnes in the year-ago period.

Wheat stocks in government godowns have piled up due to record production in the last two consecutive years. This year, the country is set for a near-record wheat harvest of 92.3 million tonnes on strong planting and favourable growing conditions.