May 19, 2014
Study: India can export 10 million tonnes of wheat annually
India can export up to 10 million tonnes of wheat each year if the country is able to maintain production level of about 95 million tonnes, study says.
Export of the crop is the only ideal option to avoid massive spoilage. About 40% of grains worth about INR50,000 crore (US$8.55 billion) goes to waste due to the lack of adequate scientific wheat storage and the slow pace of creating fresh space in the country, ASSOCHAM study on wheat production in India pointed out.
The study also says that a long-term and stable wheat export policy is needed, as it will help develop dedicated clientele in the global market. India in turn will earn much needed foreign exchange and be able to open vis-vis storage.
Afghanistan, Bangladesh, Indonesia, South Korea, Malaysia, Nepal, Oman, Philippines, Qatar, Saudi Arabia, Thailand, UAE, Yemen, Vietnam and African Countries like Djibouti, Ethiopia, Sudan and Tanzania are major importers of Indian wheat.
Growing demand for bakery, value-added and ready-to-eat wheat products is also driving wheat production in India.
Wheat procurement by government agencies may also cross the official target of 34.12 million tonnes, as the quality of this year's wheat is affected by hailstorm and rains. As a result, farmers prefer to unload low-quality wheat early, as such the government might end up procuring higher, highlighted the study.