November 30, 2004

India Able to Export 3 Million MT Wheat to Cater to International Demand

India is able to export 3 million tons of wheat worth US$390 million even after meeting the domestic demand of 65 million tons, and allocating for buffer stocks after the current rabi season.

"We can capitalise on the demand for high grade wheat in the international market by exporting about 3 million tons of the commodity, and earning US$390 million in revenue," according to a senior agriculture ministry official.

Taking the average international wheat price to be around US$130 per ton, exports of three million tons will harvest US$390 million, he said.

The government has been making arrangements to segregate the high grade variety of wheat right at the mandi level. He said the wheat with high level of protein content of 9.5 to 14 per cent is in great demand in the international market and India can contribute to the annual 110 million ton global wheat market.

Although India has exported 11 million tons of wheat during the last four years, the "machinery" has yet to be geared up to tap the full export potential, the official said.