May 3, 2005

India wheat export to be lower

India's wheat exports for April 2005 ¨C March 2006 are expected to be at a low level of 1.8 million tonnes, making it unlikely that there will be large exports this year.

However, smaller quantities to neighbouring countries will most probably continue as normal. Improving political relations with Pakistan will make it potentially easier to export Indian wheat there with the opening of land routes.

The USDA forecast is that Indian wheat output will reach 74 million tonnes due to favourable growing conditions. Under the price support operation, the central government is expected to procure increased quantities of wheat this marketing year at 18-10 million tonnes, compared with 6.7 million tonnes last year.