December 4, 2012

India plans to establish global brand for Indian wheat

The government of India is planning to build a global brand for its Indian wheat, as its wheat exports are getting good returns in the international market.

Moreover as wheat exports from central pool is picking up, the government is expecting that by the end of fiscal year 2012-13 there will be 20 million tonnes of wheat in stocks although there was only 9.8 million tonnes increase in wheat procurement this year as compared to last year.

As exports have increased the government's fear of huge losses of wheat has been wiped out. This is because more than six million tonnes of surplus wheat was stored in unscientific manner in June this year due to lack of storage facilities.

It should be noted that in the international market wheat prices started increasing from August this year because of low production in Australia, Russia, Ukraine, and Argentina and drought in the US, which is the largest exporter of the product in the world.

Moreover international prices of wheat will enable the government to decrease export subsidy to less than INR5 billion (US$91.3 million) in fiscal 2012-13.