Having produced a bumper harvest, India has once again reclaimed its place among the major food suppliers to the global market.
According to the latest data, India has resumed exporting wheat. Experts note that this is the first time in four years that India has not shipped this product abroad.
This result was achieved thanks to several factors.
First, the country’s impressive government reserves, which effectively constitute a surplus, made their sale a logical step.
Second, favorable pricing conditions on global markets provide an opportunity to sell wheat at a significant profit.
Finally, the relative stabilization of freight rates makes delivery costs predictable.
Experts report that India currently exports mainly small quantities of wheat to countries in Asia and the Middle East. Specifically, approximately 22,000 tons of wheat are planned for shipment to the United Arab Emirates.
It’s worth noting that India extended wheat export restrictions several times in 2023 and 2024. This was primarily due to abnormal heat, which destroyed a significant portion of the crop.
This, in turn, led to a significant depletion of wheat reserves. As a result, domestic prices soared to record levels, and the market even began to speculate about the possibility of importing wheat for the first time since 2017, which would have prevented a significant decline in food security if the situation had continued to deteriorate.
However, last year reversed this negative trend. Indian farmers enjoyed favorable weather conditions, enabling a bumper harvest.
As a result, the government was able to replenish empty storage facilities, giving them confidence that export restrictions could be eased.
Ultimately, at the beginning of this year, the Prime Minister’s office authorized traders to export 2.5 million tons of wheat, and another shipment of the same volume was subsequently approved.
However, despite this first export operation in four years, analysts note that a sharp increase in shipments from India is not expected.
In recent days, domestic wheat prices in that country have risen again due to damage to part of the crop due to adverse weather conditions.
As a result, Indian grain has become more expensive than similar shipments from Australia or the Black Sea region: $310-320 per ton instead of $290-300. This reduces its competitiveness, but for buyers experiencing a physical shortage of wheat, it remains an acceptable option.
