The turmoil (and resultant low wheat yield) in Ukraine could help India export a larger volume of the grain. As a result, Indian wheat farmers and exporters could get more markets and fetch better profits.
With a new wheat season about to commence, farmers and exporters became more optimistic. But unseasonal weather and hailstorms have destroyed a substantial amount of wheat, which may adversely affect their hopes.
Ukraine is a major exporter of wheat and was a stiff competitor to India. In fact, wheat from Ukraine was chosen over Indian wheat in the international market in the past, owing to its better quality and accessibility.
Due to civil problems happening in the country, Ukraine would not be able to export wheat this season, and India - which exports wheat to various parts of the world, including the Middle-East, South Asia and many African nations - would be a good alternative.
While India’s wheat traders and exporters are hopeful of more tenders this season, the country seems to grappling with the fact that the flow of wheat is not smooth due to the recent hailstorms, and the government has been discouraging them from fulfilling the domestic demand.
A shortage in wheat may divert items intended for export to the domestic market. Traders in the market want the government to provide a smooth flow and simplify the export procedure to take advantage of the international opportunity.
Satish Waghmare, trader, Agricultural Produce Marketing Committee (APMC) market, Navi Mumbai, said, “It is a wonderful opportunity for our traders to have greater international exposure and get more profits from the trade.”
“However, I doubt that we would have this advantage, because of the slow movements of wheat, coupled with the current unseasonal weather. The problem lies in the management of wheat for domestic purposes, which creates deficiency in the local market,” he added.
“The recent unseasonal weather has destroyed large acres of wheat and other crops. This would also create a wheat shortage in the domestic market, and adversely affect the hopes of exporting a larger volume,” stated Waghmare.
